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The More the Merrier? The Effect of Family Composition on Children's Education

  • Sandra E. Black
  • Paul G. Devereux
  • Kjell G. Salvanes

Among the perceived inputs in the production' of child quality is family size; there is an extensive theoretical literature that postulates a tradeoff between child quantity and quality within a family. However, there is little causal evidence that speaks to this theory. Our analysis is able to overcome many limitations of the previous literature by using a rich dataset that contains information on the entire population of Norway over an extended period of time and allows us to match adult children to their parents and siblings. In addition, we use exogenous variation in family size induced by the birth of twins to isolate causation. Like most previous studies, we find a negative correlation between family size and children's educational attainment. However, when we include indicators for birth order, the effect of family size becomes negligible. This finding is robust to the use of twin births as an instrument for family size. In addition, we find that birth order has a significant and large effect on children's education; children born later in the family obtain less education. These findings suggest the need to revisit economic models of fertility and child production', focusing not only on differences across families but differences within families as well.

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File URL: http://www.nber.org/papers/w10720.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10720.

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Date of creation: Sep 2004
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Publication status: published as Black, Sandra E., Paul J. Devereux and Kjell G. Salvanes. "The More The Merrier? The Effect Of Family Size And Birth Order On Children's Education," Quarterly Journal of Economics, 2005, v120(2,May), 669-700.
Handle: RePEc:nbr:nberwo:10720
Note: ED LS CH
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  1. Deschenes, Olivier, 2007. "Estimating the Effects of Family Background on the Return to Schooling," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 265-277, July.
  2. Janet Currie & Mark Stabile, 2004. "Child Mental Health and Human Capital Accumulation: The Case of ADHD," NBER Working Papers 10435, National Bureau of Economic Research, Inc.
  3. Goux, Dominique & Maurin, Eric, 2005. "The effect of overcrowded housing on children's performance at school," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 797-819, June.
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  5. 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.
  6. 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.
  7. 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.
  8. Butcher, Kristin F & Case, Anne, 1994. "The Effect of Sibling Sex Composition on Women's Education and Earnings," The Quarterly Journal of Economics, MIT Press, vol. 109(3), pages 531-63, August.
  9. Jaisri Gangadharan & Joshua Rosenbloom & Joyce Jacobson & James Wishart Pearre III, 1996. "The Effects of Child-Bearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," NBER Working Papers 5647, National Bureau of Economic Research, Inc.
  10. Iacovou, Maria, 2001. "Family composition and children's educational outcomes," ISER Working Paper Series 2001-12, Institute for Social and Economic Research.
  11. Robert M. Hauser & Hsiang-Hui Daphne Kuo, 1998. "Does the Gender Composition of Sibships Affect Women's Educational Attainment?," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 644-657.
  12. Joshua D. Angrist & William N. Evans, 1996. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," NBER Working Papers 5778, National Bureau of Economic Research, Inc.
  13. Gordon B. Dahl & Enrico Moretti, 2004. "The Demand for Sons: Evidence from Divorce, Fertility, and Shotgun Marriage," NBER Working Papers 10281, National Bureau of Economic Research, Inc.
  14. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  15. Bronars, Stephen G & Grogger, Jeff, 1994. "The Economic Consequences of Unwed Motherhood: Using Twin Births as a Natural Experiment," American Economic Review, American Economic Association, vol. 84(5), pages 1141-56, December.
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