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Sibling Size and Investment in Children's Education: An Asian Instrument

  • Lee, Jungmin


    (Sogang University)

This study consistently estimates the trade-off between child quantity and quality by exploiting exogenous variation in fertility due to son preferences. Under son preferences, childbearing and fertility timing are determined conditional on the first child's gender. For the sample of South Korean households I find strong evidence of unobserved heterogeneity across households. However, sibling size has adverse effects on per-child investment in education, in particular when fertility is high.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1323.

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Length: 39 pages
Date of creation: Sep 2004
Date of revision:
Publication status: published in: Journal of Population Economics, 2008, 21 (4), 855 - 875
Handle: RePEc:iza:izadps:dp1323
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  1. Angrist, Joshua & Lavy, Victor & Schlosser, Analia, 2006. "New Evidence on the Causal Link between the Quantity and Quality of Children," CEPR Discussion Papers 5668, C.E.P.R. Discussion Papers.
  2. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
  3. Rosenzweig, Mark R. & Schultz, T. Paul, 1987. "Fertility and Investments in Human Capital: Estimates of the Consequences of Imperfect Fertility Control in Malaysia," Bulletins 7513, University of Minnesota, Economic Development Center.
  4. Hanushek, Eric A, 1992. "The Trade-Off between Child Quantity and Quality," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 84-117, February.
  5. Hyunbae Chun & Jeungil Oh, 2002. "An instrumental variable estimate of the effect of fertility on the labour force participation of married women," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 631-634.
  6. Rosenzweig, Mark R & Wolpin, Kenneth I, 1980. "Testing the Quantity-Quality Fertility Model: The Use of Twins as a Natural Experiment," Econometrica, Econometric Society, vol. 48(1), pages 227-40, January.
  7. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  8. Iacovou, Maria, 2001. "Fertility and female labour supply," ISER Working Paper Series 2001-19, Institute for Social and Economic Research.
  9. Davies, James B & Zhang, Junsen, 1995. "Gender Bias, Investments in Children, and Bequests," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(3), pages 795-818, August.
  10. Robert Haveman & Barbara Wolfe, 1995. "The Determinants of Children's Attainments: A Review of Methods and Findings," Journal of Economic Literature, American Economic Association, vol. 33(4), pages 1829-1878, December.
  11. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-77, June.
  12. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
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