IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_12736.html

Skill Formation with Siblings

Author

Listed:
  • Alessandro Toppeta

Abstract

This paper estimates a structural model of skill formation for children who grow up with siblings, introducing a novel variable, the "sibling bond," which captures how well siblings get along. Using data from the Millennium Cohort Study in the United Kingdom, I construct this measure from information on the frequency and quality of sibling interactions, such as enjoying playtime together and teasing each other. Descriptive evidence shows that a stronger sibling bond is associated with better child outcomes during adolescence. The structural estimates are consistent with the sibling bond being a productive input in the skill formation of both younger and older siblings, alongside parent-child interactions.

Suggested Citation

  • Alessandro Toppeta, 2026. "Skill Formation with Siblings," CESifo Working Paper Series 12736, CESifo.
  • Handle: RePEc:ces:ceswps:_12736
    as

    Download full text from publisher

    File URL: https://www.ifo.de/DocDL/cesifo1_wp12736.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emilia Del Bono & John Ermisch & Marco Francesconi, 2012. "Intrafamily Resource Allocations: A Dynamic Structural Model of Birth Weight," Journal of Labor Economics, University of Chicago Press, vol. 30(3), pages 657-706.
    2. Gloria Moroni & Cheti Nicoletti & Emma Tominey, 2019. "Child Socio-Emotional Skills: The Role of Parental Inputs," Discussion Papers 19/08, Department of Economics, University of York.
    3. Paul Frijters & David W. Johnston & Manisha Shah & Michael A. Shields, 2009. "To Work or Not to Work? Child Development and Maternal Labor Supply," American Economic Journal: Applied Economics, American Economic Association, vol. 1(3), pages 97-110, July.
    4. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    5. Mario Fiorini & Michael P. Keane, 2014. "How the Allocation of Children's Time Affects Cognitive and Noncognitive Development," Journal of Labor Economics, University of Chicago Press, vol. 32(4), pages 787-836.
    6. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    7. Briole, Simon & Le Forner, Hélène & Lepinteur, Anthony, 2020. "Children’s socio-emotional skills: Is there a quantity–quality trade-off?," Labour Economics, Elsevier, vol. 64(C).
    8. Francesconi, Marco & Heckman, James J., 2016. "Symposium on Child Development and Parental Investment: Introduction," IZA Discussion Papers 9977, IZA Network @ LISER.
    9. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90, National Bureau of Economic Research, Inc.
    10. Francesco Agostinelli & Morteza Saharkhiz & Matthew J. Wiswall, 2019. "Home and School in the Development of Children," NBER Working Papers 26037, National Bureau of Economic Research, Inc.
    11. Thomas Dudek & Anne Ardila Brenoe & Jan Feld & Julia M. Rohrer, 2022. "No Evidence that Siblings’ Gender Affects Personality Across Nine Countries," CEBI working paper series 22-02, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    12. Douglas Almond & Janet Currie & Valentina Duque, 2018. "Childhood Circumstances and Adult Outcomes: Act II," Journal of Economic Literature, American Economic Association, vol. 56(4), pages 1360-1446, December.
    13. Cheti Nicoletti & Birgitta Rabe, 2019. "Sibling spillover effects in school achievement," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 34(4), pages 482-501, June.
    14. Costas Meghir & Orazio Attanasio & Sarah Cattan, 2022. "Early Childhood Development, Human Capital, and Poverty," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 853-892, August.
    15. Leibowitz, Arleen, 1974. "Education and Home Production," American Economic Review, American Economic Association, vol. 64(2), pages 243-250, May.
    16. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    17. Daniela Del Boca & Christopher Flinn & Ewout Verriest & Matthew Wiswall, 2018. "Actors in the Child Development Process," Carlo Alberto Notebooks 575, Collegio Carlo Alberto.
    18. Attanasio, Orazio & Blundell, Richard & Conti, Gabriella & Mason, Giacomo, 2020. "Inequality in socio-emotional skills: A cross-cohort comparison," Journal of Public Economics, Elsevier, vol. 191(C).
    19. Joseph G. Altonji & Sarah Cattan & Iain Ware, 2017. "Identifying Sibling Influence on Teenage Substance Use," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 1-47.
    20. Behrman, Jere R., 1988. "Nutrition, health, birth order and seasonality : Intrahousehold allocation among children in rural India," Journal of Development Economics, Elsevier, vol. 28(1), pages 43-62, February.
    21. Elizabeth M. Caucutt & Lance Lochner, 2020. "Early and Late Human Capital Investments, Borrowing Constraints, and the Family," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 1065-1147.
    22. Behrman, Jere R & Pollak, Robert A & Taubman, Paul, 1982. "Parental Preferences and Provision for Progeny," Journal of Political Economy, University of Chicago Press, vol. 90(1), pages 52-73, February.
    23. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    24. Teodora Boneva & Christopher Rauh, 2018. "Parental Beliefs about Returns to Educational Investments—The Later the Better?," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1669-1711.
    25. Flavio Cunha & James J. Heckman & Susanne M. Schennach, 2010. "Estimating the Technology of Cognitive and Noncognitive Skill Formation," Econometrica, Econometric Society, vol. 78(3), pages 883-931, May.
    26. Biroli, Pietro & Boneva, Teodora & Raja, Akash & Rauh, Christopher, 2022. "Parental beliefs about returns to child health investments," Journal of Econometrics, Elsevier, vol. 231(1), pages 33-57.
    27. Ulf Olsson, 1979. "Maximum likelihood estimation of the polychoric correlation coefficient," Psychometrika, Springer;The Psychometric Society, vol. 44(4), pages 443-460, December.
    28. Orazio Attanasio & Aureo de Paula & Alessandro Toppeta, 2020. "The Persistence of Socio-Emotional Skills: Life Cycle and Intergenerational Evidence," Documentos de Trabajo 18403, The Latin American and Caribbean Economic Association (LACEA).
    29. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    30. Ayalew, Tekabe, 2005. "Parental Preference, Heterogeneity, and Human Capital Inequality," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 381-407, January.
    31. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 14-64, Part II, .
    32. Daniela Del Boca & Christopher Flinn & Matthew Wiswall, 2014. "Household Choices and Child Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(1), pages 137-185.
    33. Flavio Cunha & Eric Nielsen & Benjamin Williams, 2021. "The Econometrics of Early Childhood Human Capital and Investments," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 487-513, August.
    34. Ben Weidmann & David J. Deming, 2021. "Team Players: How Social Skills Improve Team Performance," Econometrica, Econometric Society, vol. 89(6), pages 2637-2657, November.
    35. Junjian Yi & James J. Heckman & Junsen Zhang & Gabriella Conti, 2015. "Early Health Shocks, Intra†household Resource Allocation and Child Outcomes," Economic Journal, Royal Economic Society, vol. 125(588), pages 347-371, November.
    36. Gurantz, Oded & Hurwitz, Michael & Smith, Jonathan, 2020. "Sibling effects on high school exam taking and performance," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 534-549.
    37. Michael Grätz & Florencia Torche, 2016. "Compensation or Reinforcement? The Stratification of Parental Responses to Children’s Early Ability," Demography, Springer;Population Association of America (PAA), vol. 53(6), pages 1883-1904, December.
    38. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages 3-33, February.
    39. Orazio Attanasio & Raquel Bernal & Michele Giannola & Milagros Nores, 2020. "The Changing Dimensions of Child Development," NBER Working Papers 27812, National Bureau of Economic Research, Inc.
    40. Orazio Attanasio & Sarah Cattan & Emla Fitzsimons & Costas Meghir & Marta Rubio-Codina, 2020. "Estimating the Production Function for Human Capital: Results from a Randomized Controlled Trial in Colombia," American Economic Review, American Economic Association, vol. 110(1), pages 48-85, January.
    41. Joshua Angrist & Victor Lavy & Analia Schlosser, 2010. "Multiple Experiments for the Causal Link between the Quantity and Quality of Children," Journal of Labor Economics, University of Chicago Press, vol. 28(4), pages 773-824, October.
    42. Mikkel Aagaard Houmark & Victor Ronda & Michael Rosholm, 2024. "The Nurture of Nature and the Nature of Nurture: How Genes and Investments Interact in the Formation of Skills," American Economic Review, American Economic Association, vol. 114(2), pages 385-425, February.
    43. Anna Aizer & Flavio Cunha, 2012. "The Production of Human Capital: Endowments, Investments and Fertility," NBER Working Papers 18429, National Bureau of Economic Research, Inc.
    44. Achyuta Adhvaryu & Anant Nyshadham, 2016. "Endowments at Birth and Parents' Investments in Children," Economic Journal, Royal Economic Society, vol. 126(593), pages 781-820, June.
    45. Daniela Del Boca & Christopher Flinn & Ewout Verriest & Matthew Wiswall, 2018. "Actors in the Child Development Process," Carlo Alberto Notebooks 575, Collegio Carlo Alberto.
    46. Paul Frijters & David Johnston & Manisha Shah & Michael Shields, 2013. "Intrahousehold Resource Allocation: Do Parents Reduce or Reinforce Child Ability Gaps?," Demography, Springer;Population Association of America (PAA), vol. 50(6), pages 2187-2208, December.
    47. repec:plo:pone00:0229006 is not listed on IDEAS
    48. Joensen, Juanna Schrøter & Nielsen, Helena Skyt, 2018. "Spillovers in education choice," Journal of Public Economics, Elsevier, vol. 157(C), pages 158-183.
    49. Ronni Pavan, 2016. "On the Production of Skills and the Birth-Order Effect," Journal of Human Resources, University of Wisconsin Press, vol. 51(3), pages 699-726.
    50. Elizabeth Caucutt & Lance Lochner & Joseph Mullins & Youngmin Park, 2026. "Child Skill Production: Accounting for Parental and Market-Based Time and Goods Investments," Journal of Political Economy, University of Chicago Press, vol. 134(1), pages 150-209.
    51. Marco Francesconi & James J. Heckman, 2016. "Child Development and Parental Investment: Introduction," Economic Journal, Royal Economic Society, vol. 126(596), pages 1-27, October.
    52. Charles F. Manski, 1993. "Identification of Endogenous Social Effects: The Reflection Problem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 531-542.
    53. Orazio P. Attanasio, 2015. "The Determinants Of Human Capital Formation During The Early Years Of Life: Theory, Measurement, And Policies," Journal of the European Economic Association, European Economic Association, vol. 13(6), pages 949-997, December.
    54. Javaeria A. Qureshi, 2018. "Siblings, Teachers, and Spillovers on Academic Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 272-297.
    55. Francesco Agostinelli & Matthew Wiswall, 2025. "Estimating the Technology of Children’s Skill Formation," Journal of Political Economy, University of Chicago Press, vol. 133(3), pages 846-887.
    56. Jee-Yeon K. Lehmann & Ana Nuevo-Chiquero & Marian Vidal-Fernandez, 2018. "The Early Origins of Birth Order Differences in Children’s Outcomes and Parental Behavior," Journal of Human Resources, University of Wisconsin Press, vol. 53(1), pages 123-156.
    57. Adam Altmejd & Andrés Barrios-Fernández & Marin Drlje & Joshua Goodman & Michael Hurwitz & Dejan Kovac & Christine Mulhern & Christopher Neilson & Jonathan Smith, 2021. "O Brother, Where Start Thou? Sibling Spillovers on College and Major Choice in Four Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1831-1886.
    58. Björklund Anders & Lindahl Lena & Lindquist Matthew J., 2010. "What More Than Parental Income, Education and Occupation? An Exploration of What Swedish Siblings Get from Their Parents," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-40, November.
    59. Orazio Attanasio & Costas Meghir & Emily Nix & Francesca Salvati, 2017. "Human Capital Growth and Poverty: Evidence from Ethiopia and Peru," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 25, pages 234-259, April.
    60. de Haan, Monique, 2010. "Birth order, family size and educational attainment," Economics of Education Review, Elsevier, vol. 29(4), pages 576-588, August.
    61. Pedro Carneiro & Costas Meghir & Matthias Parey, 2013. "Maternal Education, Home Environments, And The Development Of Children And Adolescents," Journal of the European Economic Association, European Economic Association, vol. 11, pages 123-160, January.
    62. James J. Heckman & John Eric Humphries & Gregory Veramendi, 2018. "Returns to Education: The Causal Effects of Education on Earnings, Health, and Smoking," Journal of Political Economy, University of Chicago Press, vol. 126(S1), pages 197-246.
    63. Flavio Cunha & Irma Elo & Jennifer Culhane, 2013. "Eliciting Maternal Expectations about the Technology of Cognitive Skill Formation," NBER Working Papers 19144, National Bureau of Economic Research, Inc.
    64. Prashant Bharadwaj & Juan Pedro Eberhard & Christopher A. Neilson, 2018. "Health at Birth, Parental Investments, and Academic Outcomes," Journal of Labor Economics, University of Chicago Press, vol. 36(2), pages 349-394.
    65. Douglas Almond & Janet Currie, 2011. "Killing Me Softly: The Fetal Origins Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 25(3), pages 153-172, Summer.
    66. Dai, Xianhua & Heckman, James J., 2013. "Older siblings' contributions to young child's cognitive skills," Economic Modelling, Elsevier, vol. 35(C), pages 235-248.
    67. Sanni Breining & Joseph Doyle & David N. Figlio & Krzysztof Karbownik & Jeffrey Roth, 2020. "Birth Order and Delinquency: Evidence from Denmark and Florida," Journal of Labor Economics, University of Chicago Press, vol. 38(1), pages 95-142.
    68. Marco Francesconi & James J. Heckman, 2016. "Child Development and Parental Investment: Introduction," Economic Journal, Royal Economic Society, vol. 126(596), pages 1-27, October.
    69. Rachel Dunifon & Paula Fomby & Kelly Musick, 2017. "Siblings and children's time use in the United States," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 37(49), pages 1611-1624.
    70. Esteban Aucejo & Jonathan James, 2021. "The Path to College Education: The Role of Math and Verbal Skills," Journal of Political Economy, University of Chicago Press, vol. 129(10), pages 2905-2946.
    71. Olley, G Steven & Pakes, Ariel, 1996. "The Dynamics of Productivity in the Telecommunications Equipment Industry," Econometrica, Econometric Society, vol. 64(6), pages 1263-1297, November.
    72. Behrman, Jere R & Rosenzweig, Mark R & Taubman, Paul, 1994. "Endowments and the Allocation of Schooling in the Family and in the Marriage Market: The Twins Experiment," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1131-1174, December.
    73. Orazio Attanasio & Teodora Boneva & Christopher Rauh, 2022. "Parental Beliefs about Returns to Different Types of Investments in School Children," Journal of Human Resources, University of Wisconsin Press, vol. 57(6), pages 1789-1825.
    74. Orazio Attanasio & Flavio Cunha & Pamela Jervis, 2019. "Subjective Parental Beliefs: Their Measurement and Role," NBER Working Papers 26516, National Bureau of Economic Research, Inc.
    75. James Heckman & Rodrigo Pinto & Peter Savelyev, 2013. "Understanding the Mechanisms through Which an Influential Early Childhood Program Boosted Adult Outcomes," American Economic Review, American Economic Association, vol. 103(6), pages 2052-2086, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michele Giannola, 2024. "Parental Investments and Intra-household Inequality in Child Human Capital: Evidence from a Survey Experiment," The Economic Journal, Royal Economic Society, vol. 134(658), pages 671-727.
    2. Jia Wu & Jiada Lin & Xiao Han, 2023. "Compensation for girls in early childhood and its long-run impact: family investment strategies under rainfall shocks," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1225-1268, July.
    3. Nicoletti, Cheti & Tonei, Valentina, 2017. "The Response of Parental Time Investments to the Child's Skills and Health," IZA Discussion Papers 10993, IZA Network @ LISER.
    4. Sebastian Gallegos & Pablo Celhay, 2020. "Early Skill Effects on Types of Parental Investments and Long-Run Outcomes," Working Papers 2020-014, Human Capital and Economic Opportunity Working Group.
    5. Houmark, Mikkel Aagaard, 2023. "First Among Equals? How Birth Order Shapes Child Development," MPRA Paper 119325, University Library of Munich, Germany.
    6. Wei Fan & Catherine Porter, 2020. "Reinforcement or compensation? Parental responses to children’s revealed human capital levels," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 233-270, January.
    7. Jingdong Zhong & Jingjing Gao & Chengfang Liu & Jie Huang & Renfu Luo, 2019. "Quantity–Quality Trade-Off and Early Childhood Development in Rural Family: Evidence from China’s Guizhou Province," IJERPH, MDPI, vol. 16(7), pages 1-29, April.
    8. Jorge Luis García & James J. Heckman, 2023. "Parenting Promotes Social Mobility Within and Across Generations," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 349-388, September.
    9. Brandon J. Restrepo, 2016. "Parental investment responses to a low birth weight outcome: who compensates and who reinforces?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(4), pages 969-989, October.
    10. Badaracco, Nicolás, 2026. "Time investment responses of parents and students to school inputs," Economics of Education Review, Elsevier, vol. 110(C).
    11. William R. Dougan & Jorge Luis García & Illia Polovnikov, 2023. "High-Quality Early-Childhood Education at Scale: Evidence from a Multisite Randomized Trial," NBER Working Papers 31694, National Bureau of Economic Research, Inc.
    12. Nicoletti, Cheti & Tonei, Valentina, 2020. "Do parental time investments react to changes in child’s skills and health?," European Economic Review, Elsevier, vol. 127(C).
    13. Antonia Antweiler & Joachim Freyberger, 2025. "Flexible estimation of skill formation models," Papers 2507.18995, arXiv.org.
    14. Savelyev, Peter A. & Ward, Benjamin C. & Krueger, Robert F. & McGue, Matt, 2022. "Health endowments, schooling allocation in the family, and longevity: Evidence from US twins," Journal of Health Economics, Elsevier, vol. 81(C).
    15. David J. Deming & Mikko I. Silliman, 2024. "Skills and Human Capital in the Labor Market," NBER Working Papers 32908, National Bureau of Economic Research, Inc.
    16. Francesconi, Marco & Heckman, James J, 2015. "Symposium on Child Development and Parental Investment: Introduction," Economics Discussion Papers 16868, University of Essex, Department of Economics.
    17. Abufhele, Alejandra & Behrman, Jere & Bravo, David, 2017. "Parental preferences and allocations of investments in children's learning and health within families," Social Science & Medicine, Elsevier, vol. 194(C), pages 76-86.
    18. Uta Bolt & Eric French & Jamie Hentall-MacCuish & Cormac O'Dea, 2021. "The intergenerational elasticity of earnings: exploring the mechanisms," IFS Working Papers W21/07, Institute for Fiscal Studies.
    19. Sanz-de-Galdeano, Anna & Terskaya, Anastasia, 2019. "Sibling Differences in Educational Polygenic Scores: How Do Parents React?," IZA Discussion Papers 12375, IZA Network @ LISER.
    20. Bhalotra, Sonia R. & Delavande, Adeline & Gilabert, Paulino Font & Maselko, Joanna, 2020. "Maternal Investments in Children: The Role of Expected Effort and Returns," IZA Discussion Papers 13056, IZA Network @ LISER.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_12736. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.