Laterborns Don't Give Up: The Effects of Birth Order on Earnings in Europe
While it is well known that birth order affects educational attainment, less is known about its effects on earnings. Using data from eleven European countries for males born between 1935 and 1956, we show that firstborns enjoy on average a 13.7 percent premium over laterborns in their wage at labour market entry. However, this advantage is short lived, and disappears by age 30, between 10 and 15 years after labour market entry. While firstborns start with a better match, partly because of their higher education, laterborns quickly catch up by switching earlier and more frequently to better paying jobs. We argue that a key factor driving our findings is that laterborns are more likely to engage in risky behaviours.
|Date of creation:||Oct 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joseph Price, 2008. "Parent-Child Quality Time: Does Birth Order Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
- Björklund, Anders & Jäntti, Markus, 2012. "How important is family background for labor-economic outcomes?," Labour Economics, Elsevier, vol. 19(4), pages 465-474.
- Angelini, V.; & Mierau, J.O.;, 2012.
"Childhood Health and the Business Cycle: Evidence from Western Europe,"
Health, Econometrics and Data Group (HEDG) Working Papers
12/28, HEDG, c/o Department of Economics, University of York.
- Mierau & Angelini, 2012. "Social and Economic Aspects of Childhood Health: Evidence from Western-Europe," Research Report 12002-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Joop Hartog & Erik Plug & Luis Diaz Serrano & Jose Vieira, 2003. "Risk compensation in wages – a replication," Empirical Economics, Springer, vol. 28(3), pages 639-647, July.
- Gerard J. van den Berg & Maarten Lindeboom & France Portrait, 2006. "Economic Conditions Early in Life and Individual Mortality," American Economic Review, American Economic Association, vol. 96(1), pages 290-302, March.
- Fabian Lange, 2007. "The Speed of Employer Learning," Journal of Labor Economics, University of Chicago Press, vol. 25, pages 1-35.
- Cappellari, Lorenzo, 2002. "Earnings dynamics and uncertainty in Italy: how do they differ between the private and public sectors?," Labour Economics, Elsevier, vol. 9(4), pages 477-496, September.
- Flavio Cunha & James Heckman, 2007.
"The Technology of Skill Formation,"
NBER Working Papers
12840, National Bureau of Economic Research, Inc.
- Richard Disney & Carl Emmerson & Gemma Tetlow, 2007.
"What is a public sector pension worth?,"
IFS Working Papers
W07/17, Institute for Fiscal Studies.
- Jesper Bagger & Javier A. Birchenall & Hani Mansour & Sergio Urzúa, 2013.
"Education, Birth Order, and Family Size,"
NBER Working Papers
19111, National Bureau of Economic Research, Inc.
- S Black & Paul Devereux & Kjell Salvanes, 2005.
"The More the Merrier? The Effect of Family Size and Birth Order on Childrens Education,"
CEE Discussion Papers
0050, Centre for the Economics of Education, LSE.
- Sandra E. Black & Paul J. Devereux & Kjell G. Salvanes, 2005. "The More the Merrier? The Effect of Family Size and Birth Order on Children's Education," The Quarterly Journal of Economics, MIT Press, vol. 120(2), pages 669-700, May.
- Andrew E. Clark & Fabien Postel-Vinay, 2004.
"Job security and job protection,"
DELTA Working Papers
2004-16, DELTA (Ecole normale supérieure).
- Clark, Andrew E & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," CEPR Discussion Papers 4927, C.E.P.R. Discussion Papers.
- Clark, Andrew E. & Postel-Vinay, Fabien, 2005. "Job Security and Job Protection," IZA Discussion Papers 1489, Institute for the Study of Labor (IZA).
- Andrew Clark & Fabien Postel-Vinay, 2005. "Job security and job protection," LSE Research Online Documents on Economics 19904, London School of Economics and Political Science, LSE Library.
- Andrew Clark & Fabien Postel-Vinay, 2005. "Job Security and Job Protection," CEP Discussion Papers dp0678, Centre for Economic Performance, LSE.
- Kantarevic, Jasmin & Mechoulan, Stéphane, 2005.
"Birth Order, Educational Attainment and Earnings: An Investigation Using the PSID,"
IZA Discussion Papers
1789, Institute for the Study of Labor (IZA).
- Jasmin Kantarevic & Stéphane Mechoulan, 2006. "Birth Order, Educational Attainment, and Earnings: An Investigation Using the PSID," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
- Kessler, Daniel, 1991. "Birth Order, Family Size, and Achievement: Family Structure and Wage Determination," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 413-26, October.
- Behrman, Jere R & Taubman, Paul, 1986. "Birth Order, Schooling, and Earnings," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S121-45, July.
- de Haan, Monique, 2010. "Birth order, family size and educational attainment," Economics of Education Review, Elsevier, vol. 29(4), pages 576-588, August.
- Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-29, April.
- Lehmann, Jee-Yeon K. & Nuevo-Chiquero, Ana & Vidal-Fernández, Marian, 2012. "Explaining the Birth Order Effect: The Role of Prenatal and Early Childhood Investments," IZA Discussion Papers 6755, Institute for the Study of Labor (IZA).
- Dustmann, C. & van Soest, A., 1997.
"Public and Private Sector Wages of Male Workers in Germany,"
Economics Working Papers
eco97/13, European University Institute.
- Dustmann, Christian & van Soest, Arthur, 1998. "Public and private sector wages of male workers in Germany," European Economic Review, Elsevier, vol. 42(8), pages 1417-1441, September.
- Philip Oreopoulos & Till von Wachter & Andrew Heisz, 2012. "The Short- and Long-Term Career Effects of Graduating in a Recession," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 1-29, January.
- Becker, Gary S & Lewis, H Gregg, 1973. "On the Interaction between the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S279-88, Part II, .
- Hartog, Joop & Oosterbeek, Hessel, 1993. "Public and private sector wages in the Netherlands," European Economic Review, Elsevier, vol. 37(1), pages 97-114, January.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp7679. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.