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The Early Bird Gets The Worm? Birth Order Effects In A Dynamic Family Model

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  • ELISABETH GUGL
  • LINDA WELLING

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 makeup and parents do not favor one child over the other. Parental childcare time lowers the caregiver’s current and future wages; this opportunity cost varies across time. Benefits also vary and when parental childcare is a public input, coresident children allow economies of scope in childcare. Birth order effects emerge from the changing benefits and costs. (JEL D13, D91, J13)

Suggested Citation

  • Elisabeth Gugl & Linda Welling, 2010. "The Early Bird Gets The Worm? Birth Order Effects In A Dynamic Family Model," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 690-703, July.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:3:p:690-703
    DOI: 10.1111/j.1465-7295.2009.00214.x
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    References listed on IDEAS

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    Cited by:

    1. Daniela Del Boca & Christopher Flinn & Daniela Piazzalunga & Chiara Pronzato & Giuseppe Sorrenti & Matthew Wiswall, 2018. "Childcare Choices and Child Development: a Cross-Country Analysis," Carlo Alberto Notebooks 556, Collegio Carlo Alberto.
    2. Elisabeth Gugl & Linda Welling, 2012. "Time with sons and daughters," Review of Economics of the Household, Springer, vol. 10(2), pages 277-298, June.

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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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