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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 solid theoretical foundations in economics. Our new modeling approach to children provides this. Each child’s needs change as it grows, and births are sequential. Each child has the same genetic make-up and parents do not favor one child over the other. Parental child care time lowers the caregiver’s current and future wages; this opportunity cost varies across time. Benefits also vary, and when parental child care is a public input co-resident children allow economies of scope in child care. Birth order effects emerge from the changing benefits and costs.

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Publisher Info
Paper provided by Department of Economics, University of Victoria in its series Department Discussion Papers with number 0801.

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Length: 35 pages
Date of creation: 23 Oct 2008
Date of revision:
Handle: RePEc:vic:vicddp:0801

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)
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  3. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  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.
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  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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