The Early Bird gets the Worm? Birth Order Effects in a Dynamic Model of the Family
AbstractBirth 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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Bibliographic InfoPaper provided by Department of Economics, University of Victoria in its series Department Discussion Papers with number 0710.
Length: 38 pages
Date of creation: 16 Dec 2007
Date of revision:
Note: ISSN 1914-2838
Contact details of provider:
Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Web page: http://web.uvic.ca/econ
More information through EDIRC
Birth order; children; family;
Other versions of this item:
- Elisabeth Gugl & Linda Welling, 2008. "The Early Bird gets the Worm? Birth Order Effects in a Dynamic Model of the Family," Department Discussion Papers 0801, Department of Economics, University of Victoria.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-05 (All new papers)
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