IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/21824.html
   My bibliography  Save this paper

The Quantity-Quality Trade-off and the Formation of Cognitive and Non-cognitive Skills

Author

Listed:
  • Chinhui Juhn
  • Yona Rubinstein
  • C. Andrew Zuppann

Abstract

We estimate the impact of increases in family size on childhood and adult outcomes using matched mother-child data from the National Longitudinal Survey of Youth 1979. Using twins as an instrumental variable and panel data to control for omitted factors we find that families face a substantial quantity-quality trade-off: increases in family size decrease parental investment, decrease childhood cognitive abilities, and increase behavioral problems. The negative effects on cognitive abilities are much larger for girls while the detrimental effects on behavior are larger for boys. We also find evidence of heterogeneous effects by mother's AFQT score, with the negative effects on cognitive scores being much larger for children of mothers with low AFQT scores.

Suggested Citation

  • Chinhui Juhn & Yona Rubinstein & C. Andrew Zuppann, 2015. "The Quantity-Quality Trade-off and the Formation of Cognitive and Non-cognitive Skills," NBER Working Papers 21824, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:21824
    Note: CH ED LS
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w21824.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marianne Bertrand & Jessica Pan, 2013. "The Trouble with Boys: Social Influences and the Gender Gap in Disruptive Behavior," American Economic Journal: Applied Economics, American Economic Association, vol. 5(1), pages 32-64, January.
    2. Mark R. Rosenzweig & Junsen Zhang, 2009. "Do Population Control Policies Induce More Human Capital Investment? Twins, Birth Weight and China's "One-Child" Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 76(3), pages 1149-1174.
    3. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    4. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2010. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    5. Petra E. Todd & Kenneth I. Wolpin, 2007. "The Production of Cognitive Achievement in Children: Home, School, and Racial Test Score Gaps," Journal of Human Capital, University of Chicago Press, vol. 1(1), pages 91-136.
    6. Julio Cáceres-Delpiano, 2006. "The Impacts of Family Size on Investment in Child Quality," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    7. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    8. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 14-64, Part II, .
    9. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-240, January.
    10. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
    11. Jesper Bagger & Javier A Birchenall & Hani Mansour & Sergio Urzúa, 2021. "Education, Birth Order and Family Size [Family size and children’s education in Vietnam]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 33-69.
    12. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    13. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 15, pages 1315-1486, Elsevier.
    14. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Children's Education," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 669-700.
    15. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    16. Haoming Liu, 2014. "The quality–quantity trade-off: evidence from the relaxation of China’s one-child policy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 27(2), pages 565-602, April.
    17. Dalton Conley & Rebecca Glauber, 2006. "Parental Educational Investment and Children’s Academic Risk: Estimates of the Impact of Sibship Size and Birth Order from Exogenous Variation in Fertility," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    18. Joshua Angrist & Victor Lavy & Analia Schlosser, 2010. "Multiple Experiments for the Causal Link between the Quantity and Quality of Children," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 773-824, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marc Klemp & Jacob Weisdorf, 2019. "Fecundity, Fertility and The Formation of Human Capital," The Economic Journal, Royal Economic Society, vol. 129(618), pages 925-960.
    2. Briole, Simon & Le Forner, Hélène & Lepinteur, Anthony, 2020. "Children’s socio-emotional skills: Is there a quantity–quality trade-off?," Labour Economics, Elsevier, vol. 64(C).
    3. Jessica Leight & Elaine M. Liu, 2020. "Maternal Education, Parental Investment, and Noncognitive Characteristics in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 69(1), pages 213-251.
    4. Adriana D. Kugler & Santosh Kumar, 2017. "Preference for Boys, Family Size, and Educational Attainment in India," Demography, Springer;Population Association of America (PAA), vol. 54(3), pages 835-859, June.
    5. Srivastava, Preety & Trinh, Trong-Anh, 2021. "The effect of parental smoking on children’s cognitive and non-cognitive skills," Economics & Human Biology, Elsevier, vol. 41(C).
    6. Kabir Dasgupta & Keisha T.-Solomon, 2017. "Family Size Effects on Child Health: Evidence on the Quantity-Quality Trade-off using the NLSY," Working Papers 2017-04, Auckland University of Technology, Department of Economics.
    7. Chuan, Amanda & List, John & Samek, Anya, 2021. "Do financial incentives aimed at decreasing interhousehold inequality increase intrahousehold inequality?," Journal of Public Economics, Elsevier, vol. 196(C).
    8. Jingdong Zhong & Jingjing Gao & Chengfang Liu & Jie Huang & Renfu Luo, 2019. "Quantity–Quality Trade-Off and Early Childhood Development in Rural Family: Evidence from China’s Guizhou Province," IJERPH, MDPI, vol. 16(7), pages 1-29, April.
    9. Qing Hu & Ross Levine & Chen Lin & Mingzhu Tai, 2020. "Finance and Children’s Academic Performance," NBER Working Papers 26678, National Bureau of Economic Research, Inc.
    10. Zurab Abramishvili & William Appleman & Sergii Maksymovych, 2019. "Parental Gender Preference in the Balkans and Scandinavia: Gender Bias or Differential Costs?," CERGE-EI Working Papers wp643, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    11. Dasgupta, Kabir & Solomon, Keisha T., 2018. "Family size effects on childhood obesity: Evidence on the quantity-quality trade-off using the NLSY," Economics & Human Biology, Elsevier, vol. 29(C), pages 42-55.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingdong Zhong & Jingjing Gao & Chengfang Liu & Jie Huang & Renfu Luo, 2019. "Quantity–Quality Trade-Off and Early Childhood Development in Rural Family: Evidence from China’s Guizhou Province," IJERPH, MDPI, vol. 16(7), pages 1-29, April.
    2. Guo, Rufei & Yi, Junjian & Zhang, Junsen, 2017. "Family size, birth order, and tests of the quantity–quality model," Journal of Comparative Economics, Elsevier, vol. 45(2), pages 219-224.
    3. Zhou, Ying & Jia, Nan & Yang, Tianchi, 2021. "The quantity–quality trade-off related to investment in healthy human capital: New evidence from the implementation of the “selective two-child policy” in China," Journal of Asian Economics, Elsevier, vol. 76(C).
    4. Jia, Nan & Zhou, Ying & Yang, Tianchi, 2021. "“Selective two-child” policy and household resource allocation," China Economic Review, Elsevier, vol. 68(C).
    5. Oliveira, Jaqueline, 2016. "The value of children: Inter-generational support, fertility, and human capital," Journal of Development Economics, Elsevier, vol. 120(C), pages 1-16.
    6. Jianmei ZHAO & Hai ZHONG, 2019. "A Demographic Factor as a Determinant of Migration: What Is the Effect of Sibship Size on Migration Decision?," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 85(4), pages 321-345, December.
    7. Rubinstein, Yona & Juhn, Chinhui & Zuppann, Andrew, 2020. "Early Childhood Investments and the Quantity-Quality Trade-off," CEPR Discussion Papers 15032, C.E.P.R. Discussion Papers.
    8. Christina J. Diaz & Jeremy E. Fiel, 2021. "When Size Matters: IV Estimates of Sibship Size on Educational Attainment in the U.S," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 40(6), pages 1195-1220, December.
    9. Dasgupta, Kabir & Solomon, Keisha T., 2018. "Family size effects on childhood obesity: Evidence on the quantity-quality trade-off using the NLSY," Economics & Human Biology, Elsevier, vol. 29(C), pages 42-55.
    10. Zhong, Hai, 2014. "The effect of sibling size on children's health: a regression discontinuity design approach based on China's one-child policy," China Economic Review, Elsevier, vol. 31(C), pages 156-165.
    11. Damian Clarke, 2018. "Children And Their Parents: A Review Of Fertility And Causality," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 518-540, April.
    12. Briole, Simon & Le Forner, Hélène & Lepinteur, Anthony, 2020. "Children’s socio-emotional skills: Is there a quantity–quality trade-off?," Labour Economics, Elsevier, vol. 64(C).
    13. Liang, Yun & Gibson, John, 2018. "Do siblings take your food away? Using China's one-child policy to test for child quantity-quality trade-offs," China Economic Review, Elsevier, vol. 48(C), pages 14-26.
    14. Chen, Qihui, 2021. "Population policy, family size and child malnutrition in Vietnam – Testing the trade-off between child quantity and quality from a child nutrition perspective," Economics & Human Biology, Elsevier, vol. 41(C).
    15. Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2010. "Small Family, Smart Family? Family Size and the IQ Scores of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 45(1).
    16. Azam Mehtabul & Hang Saing Chan, 2018. "Is There Really a Trade-Off? Family Size and Investment in Child Quality in India," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(1), pages 1-12, January.
    17. Haoming Liu & Li Li, 2022. "The quantity–quality fertility–education trade-off," IZA World of Labor, Institute of Labor Economics (IZA), pages 143-143, March.
    18. Li, Honghui & Hiwatari, Masato, 2020. "Family Size and Educational Attainment : The Case of China," Discussion paper series. A 353, Graduate School of Economics and Business Administration, Hokkaido University.
    19. Philip DeCicca & Harry Krashinsky, 2023. "The effect of education on overall fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 471-503, January.
    20. Sascha Becker & Francesco Cinnirella & Ludger Woessmann, 2010. "The trade-off between fertility and education: evidence from before the demographic transition," Journal of Economic Growth, Springer, vol. 15(3), pages 177-204, September.

    More about this item

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:21824. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.