The Effect of a Sibling's Gender on Earnings, Education and Family Formation

27 Pages Posted: 4 Sep 2015

See all articles by Noemi Peter

Noemi Peter

University of Groningen

Petter Lundborg

Lund University School of Economics and Management; Tinbergen Institute; IZA Institute of Labor Economics

H. Dinand Webbink

University of Amsterdam - Faculty of Economics and Business (FEB)

Abstract

We examine how the gender of a sibling affects earnings, education and family formation. Identification is complicated by parental preferences: if parents prefer certain sex compositions over others, children's gender affects not only the outcomes of other children but also the very existence of potential additional children. We address this problem by looking at dizygotic twins. In these cases, the two children are born at the same time, so parents cannot make decisions about one twin based on the gender of the other twin.We find that the gender of the sibling influences both men and women, but in a different way. Men with brothers earn more and are more likely to get married and have children than men with sisters. Women with sisters obtain lower education and give birth earlier than women with brothers. Our analysis shows that the family size channel cannot explain the findings. Instead, the most likely explanation is that siblings affect each other via various social mechanisms.

Keywords: sibling gender, sex composition, twins, income, schooling, fertility

JEL Classification: J00, J24, J16

Suggested Citation

Peter, Noemi and Lundborg, Petter and Webbink, H. Dinand, The Effect of a Sibling's Gender on Earnings, Education and Family Formation. IZA Discussion Paper No. 9128. Available at SSRN: https://ssrn.com/abstract=2655077

Noemi Peter (Contact Author)

University of Groningen ( email )

P.O. Box 800
Groningen, Groningen 9700 AV
Netherlands

HOME PAGE: http://sites.google.com/site/noemipeter

Petter Lundborg

Lund University School of Economics and Management ( email )

P.O Box 7080
Lund
Sweden

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

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

H. Dinand Webbink

University of Amsterdam - Faculty of Economics and Business (FEB) ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands

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