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The Early Bird gets the Worm? Birth Order Effects in a Dynamic Model of the Family

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Author Info
Elisabeth Gugl () (Department of Economics, University of Victoria)
Linda Welling () (Department of Economics, University of Victoria)

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Abstract

Birth order effects are found in empirical work, but lack theoretical foundations. Our new approach to modelling children provides this. Each child has the same genetic make-up and parents do not favour a child based on its birth order. Each child’s needs change as it grows, and births are sequential. At any point in time siblings are at different developmental stages, and the benefits of parental investment differ across these stages. Parental time investment in children lowers current and future wages; this opportunity cost varies across time. Birth order effects emerge from the interaction of the changing benefits and costs of parental investment.

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Publisher Info
Paper provided by Department of Economics, University of Victoria in its series Department Discussion Papers with number 0710.

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Length: 38 pages
Date of creation: 16 Dec 2007
Date of revision:
Handle: RePEc:vic:vicddp:0710

Note: ISSN 1914-2838
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Related research
Keywords: Birth order; children; family;

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Find related papers by JEL classification:
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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  1. Joshua D. Angrist & Victor Lavy & Analia Schlosser, 2005. "New Evidence on the Causal Link Between the Quantity and Quality of Children," NBER Working Papers 11835, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Maxim Engers & Steven Stern, 2002. "Long-Term Care and Family Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 73-114, February. [Downloadable!] (restricted)
    Other versions:
  3. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. 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, MIT Press, vol. 120(2), pages 669-700, May.
    Other versions:
  5. Ted Bergstrom & Richard Cornes, 1983. "Independence of Allocative Efficiency from Distribution in the Theory of Public Goods," University of California at Santa Barbara, Economics Working Paper Series 1983B, Department of Economics, UC Santa Barbara. [Downloadable!]
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  6. Michael Baker & Jonathan Gruber & Kevin Milligan, 2005. "Universal Childcare, Maternal Labor Supply, and Family Well-Being," NBER Working Papers 11832, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Ruhm, Christopher J., 2000. "Parental leave and child health," Journal of Health Economics, Elsevier, vol. 19(6), pages 931-960, November. [Downloadable!] (restricted)
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  8. Jeremy Greenwood & Nezih Guner & John A. Knowles, 2000. "Women on Welfare: A Macroeconomic Analysis," American Economic Review, American Economic Association, vol. 90(2), pages 383-388, May. [Downloadable!] (restricted)
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  9. Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, . [Downloadable!] (restricted)
  10. Kessler, Daniel, 1991. "Birth Order, Family Size, and Achievement: Family Structure and Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 413-26, October. [Downloadable!] (restricted)
  11. Christopher J. Ruhm, 1996. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," NBER Working Papers 5688, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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