O Brother, Where Art Thou? The Effects of Having a Sibling on Geographic Mobility and Labour Market Outcomes

29 Pages Posted: 16 Jun 2009

See all articles by Helmut Rainer

Helmut Rainer

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute

Thomas Siedler

University of Hamburg - Faculty of Business, Economics, and Social Sciences; DIW Berlin; Institute for the Study of Labor (IZA); University of Essex

Abstract

This paper formulates a model to explain how parental care responsibilities and family structure interact in affecting children's mobility characteristics. Our main result is that the mobility of young adults crucially depends on the presence of a sibling. Siblings compete in location and employment decisions to direct parental care decisions towards their preferred outcome. Only children are not exposed to this kind of competition. This causes an equilibrium in which siblings exhibit higher mobility than only children, and also have better labour market outcomes. Using data from the German Socio-Economic Panel, we find evidence that confirms these patterns.

Suggested Citation

Rainer, Helmut and Siedler, Thomas, O Brother, Where Art Thou? The Effects of Having a Sibling on Geographic Mobility and Labour Market Outcomes. Economica, Vol. 76, Issue 303, pp. 528-556, July 2009. Available at SSRN: https://ssrn.com/abstract=1417652 or http://dx.doi.org/10.1111/j.1468-0335.2008.00696.x

Helmut Rainer (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute ( email )

Poschinger Str. 5
Munich, 01069
Germany

Thomas Siedler

University of Hamburg - Faculty of Business, Economics, and Social Sciences ( email )

Von-Melle-Park 9
Hamburg, 20146
Germany

DIW Berlin ( email )

Mohrenstraße 58
Berlin, 10117
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

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