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The empirical content of season-of-birth effects: An investigation with Turkish data

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Listed:
  • Huzeyfe Torun

    (Türkiye Cumhuriyet Merkez Bankası (Central Bank of the Republic of Turkey))

  • Semih Tumen

    (Türkiye Cumhuriyet Merkez Bankası (Central Bank of the Republic of Turkey))

Abstract

Background: Our aim is to investigate the link between season of birth and socioeconomic background. Objective: Season of birth is often used as an instrumental variable in answering various research questions in demography and economics. We use Turkish data to point out the potential deficiencies of this approach. We show that these deficiencies can be amplified in developing-country settings due to measurement errors. Methods: We merge administrative birth records into the Turkish Labor Force survey and use OLS, IV–2SLS, and regression discontinuity approaches to answer the question we pose. Results: We find that, due to certain institutional, cultural, and geographical factors, around 20% of the Turkish population are reported to have been born in January. Moreover, January-born individuals have, on average, a worse socioeconomic background than individuals born in other months. Conclusions: These findings suggest that the season-of-birth variable, which is used as an instrumental variable (IV) in many studies using Turkish data, is not random; thus, one should be careful in implementing IV estimation based on season-of-birth cutoffs. In particular, it cannot be used in regression discontinuity exercises relying on date cutoffs around January 1 (which important policy efforts such as the reform of compulsory education often do) unless handled with caution. Contribution: The main contribution of this paper is to show that the season-of-birth variable is potentially nonrandom (i.e., it is not independent from family background) for several reasons, and the degree of this nonrandomness is likely amplified in developing-country settings.

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  • Huzeyfe Torun & Semih Tumen, 2017. "The empirical content of season-of-birth effects: An investigation with Turkish data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 37(57), pages 1825-1860.
  • Handle: RePEc:dem:demres:v:37:y:2017:i:57
    DOI: 10.4054/DemRes.2017.37.57
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    Cited by:

    1. Bahadir Dursun & Resul Cesur & Inas Rashad Kelly, 2017. "The Value of Mandating Maternal Education in a Developing Country," NBER Working Papers 23492, National Bureau of Economic Research, Inc.
    2. Torun, Huzeyfe & Tumen, Semih, 2016. "The effects of compulsory military service exemption on education and labor market outcomes: Evidence from a natural experiment," Economics of Education Review, Elsevier, vol. 54(C), pages 16-35.
    3. Hofmarcher, Thomas, 2017. "The Effect of Paid Vacation on Health: Evidence from Sweden," Working Papers 2017:13, Lund University, Department of Economics, revised 17 Nov 2018.
    4. Anne (A.C.) Gielen & Esmee Zwiers, 2018. "Biology and the gender gap in educational performance - The role of prenatal testosterone in test scores," Tinbergen Institute Discussion Papers 18-086/V, Tinbergen Institute.

    More about this item

    Keywords

    season of birth; education; earnings; family background;

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • Z0 - Other Special Topics - - General

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