Birth Order, Schooling, and Earnings
Birth-order effects are posited by many to affect earnings and schooling. The authors show how such effects can be interpreted to shift either the earnings possibility frontier for siblings or parental preferences. The authors find empirical evidence for birth- order effects on (age-adjusted) schooling and on earnings for young U.S. adults, though the latter is not robust for all specifications. The examination of intrahousehold allocations suggests that these birth-order differences occur, despite parental preferences or prices, by birth order favoring later-borns, apparently because of stronger endowment effects that favor firstborns. Copyright 1986 by University of Chicago Press.
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