IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v108y2022ics0264999321003436.html
   My bibliography  Save this article

Signaling of earlier-born Children's endowments, intra-household allocation, and birth-order effects

Author

Listed:
  • Wei, Xu
  • Zhou, Yi
  • Zhou, Yimin

Abstract

This paper provides a new explanation for birth-order effects by considering the genetic similarity between siblings. We develop a quantity–quality trade-off model in which parents form their expectations of possible future children's endowments by observing the performance of their existing children. Our model shows that having a talented first child may weaken parents' incentive to have additional children due to the substitution effect. However, it also may encourage a second birth due to the signaling effect. Without assuming that children of a specific birth order have a biological advantage or more parental attention, this model predicts a birth-order gap in parents' human capital investment, the magnitude of which depends on the endowments of the first child and its predictive power as a signal of the potential endowment of a possible second child.

Suggested Citation

  • Wei, Xu & Zhou, Yi & Zhou, Yimin, 2022. "Signaling of earlier-born Children's endowments, intra-household allocation, and birth-order effects," Economic Modelling, Elsevier, vol. 108(C).
    • Handle: RePEc:eee:ecmode:v:108:y:2022:i:c:s0264999321003436
    DOI: 10.1016/j.econmod.2021.105754
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999321003436
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2021.105754?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel J. Benjamin & David Cesarini & Christopher F. Chabris & Edward L. Glaeser & David I. Laibson & Vilmundur Guðnason & Tamara B. Harris & Lenore J. Launer & Shaun Purcell & Albert Vernon Smith & M, 2012. "The Promises and Pitfalls of Genoeconomics," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 627-662, July.
      • Grankvist, Alexander & Benjamin, Daniel J. & Harris, Tamara B. & Launer, Lenore J. & Smith, Albert Vernon & Johannesson, Magnus & Atwood, Craig S. & Hebert, Benjamin Michael & Hultman, Christina M. & , 2012. "The Promises and Pitfalls of Genoeconomics," Scholarly Articles 10137000, Harvard University Department of Economics.
    2. Alison Booth & Hiau Kee, 2009. "Birth order matters: the effect of family size and birth order on educational attainment," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 367-397, April.
    3. 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.
    4. 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, President and Fellows of Harvard College, vol. 120(2), pages 669-700.
    5. 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.
    6. Jonathan P. Beauchamp & David Cesarini & Magnus Johannesson & Matthijs J. H. M. van der Loos & Philipp D. Koellinger & Patrick J. F. Groenen & James H. Fowler & J. Niels Rosenquist & A. Roy Thurik & N, 2011. "Molecular Genetics and Economics," Journal of Economic Perspectives, American Economic Association, vol. 25(4), pages 57-82, Fall.
    7. 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.
    8. 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.
    9. van der Loos, Matthijs J. H. M. & Benjamin, Daniel J. & Cesarini, David & Dawes, Christopher T. & Koellinger, Philipp D. & Magnusson, Patrik K. E. & Chabris, Christopher F. & Conley, Dalton & Laibson,, 2012. "The Genetic Architecture of Economic and Political Preferences," Scholarly Articles 10121961, Harvard University Department of Economics.
    10. Sandra E. Black & Erik Grönqvist & Björn Öckert, 2018. "Born to Lead? The Effect of Birth Order on Noncognitive Abilities," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 274-286, May.
    11. Nancy Qian, 2008. "Missing Women and the Price of Tea in China: The Effect of Sex-Specific Earnings on Sex Imbalance," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 123(3), pages 1251-1285.
    12. V. Hotz & Juan Pantano, 2015. "Strategic parenting, birth order, and school performance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 911-936, October.
    13. Ronald Lee, 2003. "The Demographic Transition: Three Centuries of Fundamental Change," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 167-190, Fall.
    14. Ashlesha Datar & M. Kilburn & David Loughran, 2010. "Endowments and parental investments in infancy and early childhood," Demography, Springer;Population Association of America (PAA), vol. 47(1), pages 145-162, February.
    15. Monique De Haan & Erik Plug & José Rosero, 2014. "Birth Order and Human Capital Development: Evidence from Ecuador," Journal of Human Resources, University of Wisconsin Press, vol. 49(2), pages 359-392.
    16. Reggio, Iliana, 2011. "The influence of the mother's power on her child's labor in Mexico," Journal of Development Economics, Elsevier, vol. 96(1), pages 95-105, September.
    17. Lixing Li & Xiaoyu Wu & Yi Zhou, 2021. "Intra-household bargaining power, surname inheritance, and human capital accumulation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 35-61, January.
    18. Wang, Ruiting & Xu, Gang, 2020. "Can child allowances improve fertility in a gender discrimination economy?," Economic Modelling, Elsevier, vol. 93(C), pages 162-174.
    19. 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.
    20. Wanchuan Lin & Juan Pantano & Shuqiao Sun, 2020. "Birth order and unwanted fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 413-440, April.
    21. Joseph Price, 2008. "Parent-Child Quality Time: Does Birth Order Matter?," Journal of Human Resources, University of Wisconsin Press, vol. 43(1).
    22. Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-815, September.
    23. Parman, John, 2015. "Childhood health and sibling outcomes: Nurture Reinforcing nature during the 1918 influenza pandemic," Explorations in Economic History, Elsevier, vol. 58(C), pages 22-43.
    24. Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711, Elsevier.
    25. Hastie, Nicholas D. & van der Loos, Matthijs J. H. M. & Vitart, Veronique & Völzke, Henry & Wellmann, Jürgen & Yu, Lei & Zhao, Wei & Allik, Jüri & Attia, John R. & Bandinelli, Stefania & Bastardot,, 2013. "GWAS of 126,559 Individuals Identifies Genetic Variants Associated with Educational Attainment," Scholarly Articles 13383543, Harvard University Department of Economics.
    26. Ng, Wung Lik & Wang, Yin-Chi, 2020. "Waiting as a signal: Why women are delaying fertility?," Economic Modelling, Elsevier, vol. 87(C), pages 471-479.
    27. Ruiting Wang, 2020. "Can child allowances improve fertility in a gender discrimination economy?," KIER Working Papers 1021, Kyoto University, Institute of Economic Research.
    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. Wanchuan Lin & Juan Pantano & Shuqiao Sun, 2020. "Birth order and unwanted fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(2), pages 413-440, April.
    2. Kim, Jun Hyung & Wang, Shaoda, 2021. "Birth Order Effects, Parenting Style, and Son Preference," GLO Discussion Paper Series 1007, Global Labor Organization (GLO).
    3. Jaqueline Oliveira, 2019. "Birth order and the gender gap in educational attainment," Review of Economics of the Household, Springer, vol. 17(3), pages 775-803, September.
    4. 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).
    5. Houmark, Mikkel Aagaard, 2023. "First Among Equals? How Birth Order Shapes Child Development," MPRA Paper 119325, University Library of Munich, Germany.
    6. Conzo, Pierluigi & Zotti, Roberto, 2020. "Blessed are the first: The long-term effect of birth order on trust," Economics & Human Biology, Elsevier, vol. 39(C).
    7. Lucio Esposito & Sunil Mitra Kumar & Adrián Villaseñor, 2020. "The importance of being earliest: birth order and educational outcomes along the socioeconomic ladder in Mexico," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(3), pages 1069-1099, July.
    8. Pruckner, Gerald J. & Schneeweis, Nicole & Schober, Thomas & Zweimüller, Martina, 2021. "Birth order, parental health investment, and health in childhood," Journal of Health Economics, Elsevier, vol. 76(C).
    9. Enkelejda Havari & Marco Savegnago, 2022. "The intergenerational effects of birth order on education," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(1), pages 349-377, January.
    10. Lena Detlefsen & Andreas Friedl & Katharina Lima Miranda & Ulrich Schmidt & Matthias Sutter, 2024. "Are economic preferences shaped by the family context? The relation of birth order and siblings’ gender composition to economic preferences," Journal of Risk and Uncertainty, Springer, vol. 69(1), pages 1-31, August.
    11. Kyeongkuk Kim & Sang-Hyop Lee & Timothy J Halliday, 2018. "The Betrayed Generation? Intra-Household Transfers and Retirement Behavior in South Korea," Working Papers 201804, University of Hawaii at Manoa, Department of Economics.
    12. Kim, Kyeongkuk & Lee, Sang-Hyop & Halliday, Timothy J., 2021. "Intra-familial transfers, son preference, and retirement behavior in South Korea," The Journal of the Economics of Ageing, Elsevier, vol. 20(C).
    13. Sandra E. Black & Erik Grönqvist & Björn Öckert, 2018. "Born to Lead? The Effect of Birth Order on Noncognitive Abilities," The Review of Economics and Statistics, MIT Press, vol. 100(2), pages 274-286, May.
    14. Young-Joo Kim, 2020. "Born to be more educated? Birth order and schooling," Review of Economics of the Household, Springer, vol. 18(1), pages 165-180, March.
    15. 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.
    16. Andersen, Dana C. & Gunes, Pinar Mine, 2023. "Birth Order Effects in the Developed and Developing World: Evidence from International Test Scores," IZA Discussion Papers 15931, Institute of Labor Economics (IZA).
    17. Mendolia, Silvia & Stavrunova, Olena & Vidal-Fernandez, Marian, 2024. "Birth Order Effects on Education: Insights from Low- And Middle-Income Countries," IZA Discussion Papers 17131, Institute of Labor Economics (IZA).
    18. Handy, Christopher & Shester, Katharine, 2020. "The Effect of Birth Order on Educational Attainment among the Baby Boom Generation," MPRA Paper 102426, University Library of Munich, Germany.
    19. Christopher Handy & Katharine L. Shester, 2022. "Birth order and the decline in college completion among the baby boom generation," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1626-1643, October.
    20. 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.

    More about this item

    Keywords

    Child endowments; Intra-household allocation; Birth-order effects; Fertility decisions;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

    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:eee:ecmode:v:108:y:2022:i:c:s0264999321003436. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    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.