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Within‐family inequalities in human capital accumulation in India

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  • Heather Congdon Fors
  • Annika Lindskog

Abstract

We investigate within‐family inequalities in human capital accumulation in India. Indicators of the children's current stock of human capital and of investment into their continued human capital accumulation are analyzed, distinguishing between time investments and pecuniary investment into school quality. We employ a within‐family model using sibship fixed effects, and find mostly negative birth order effects; that is, earlier‐born children are better off. However, for time investments there is a tendency toward more positive birth order effects, especially in poor and large families. This suggests that that opportunity cost of child time matters; in poor and large families the older, more productive, siblings often need to work. The most plausible explanation for negative birth order effects in general is resource dilution at an early age. Older siblings were only children at an early age, and therefore benefited from more parental resources.

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  • Heather Congdon Fors & Annika Lindskog, 2023. "Within‐family inequalities in human capital accumulation in India," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 3-28, February.
    • Handle: RePEc:bla:rdevec:v:27:y:2023:i:1:p:3-28
    DOI: 10.1111/rode.12929
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    References listed on IDEAS

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    2. Zhang, Shumeng & Guo, Naijia & Zhang, Junsen, 2023. "Reexamining the effect of birth order on cognitive and non-cognitive abilities: New evidence from China," Economics of Education Review, Elsevier, vol. 97(C).
    3. Chandna, Arjita & Bhagowalia, Priya, 2024. "Birth order and children’s health and learning outcomes in India," Economics & Human Biology, Elsevier, vol. 52(C).

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