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

Peter, Noemi ; Lundborg, Petter LU ; Mikkelsen, Sara LU and Webbink, Dinand (2018) In Working Papers
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 existence of potential additional children. We employ two empirical strategies that both address this problem. First, we look at a sample of dizygotic (i.e. non-identical) twins. Second, we use a large sample of singletons to estimate whether first-borns are affected by the gender of their second-born sibling. We find that a same-sex sibling increases men's earnings and family formation outcomes (marriage and number of children), as compared to an opposite-sex... (More)
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 existence of potential additional children. We employ two empirical strategies that both address this problem. First, we look at a sample of dizygotic (i.e. non-identical) twins. Second, we use a large sample of singletons to estimate whether first-borns are affected by the gender of their second-born sibling. We find that a same-sex sibling increases men's earnings and family formation outcomes (marriage and number of children), as compared to an opposite-sex sibling. Women with a same-sex sibling also earn more and are somewhat more likely to form a family in the singleton sample. A large part of the positive effect on men's income can be explained by competition among brothers. Women on the other hand seem to benefit from sisters because of shared labor market networks. The effects on family formation might stem from differential parental treatment for men, and from competition between sisters for women. (Less)
Please use this url to cite or link to this publication:
author
; ; and
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
sibling gender, sex composition, twins; income, schooling, fertility, J00, J13, J16, J24
in
Working Papers
issue
2018:3
pages
45 pages
language
English
LU publication?
yes
id
f36a8e3c-2d9c-41af-9cf7-99c49fe673ba
alternative location
https://swopec.hhs.se/lunewp/abs/lunewp2018_003.htm
date added to LUP
2018-03-05 15:38:37
date last changed
2018-11-21 21:38:25
@misc{f36a8e3c-2d9c-41af-9cf7-99c49fe673ba,
  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 existence of potential additional children. We employ two empirical strategies that both address this problem. First, we look at a sample of dizygotic (i.e. non-identical) twins. Second, we use a large sample of singletons to estimate whether first-borns are affected by the gender of their second-born sibling. We find that a same-sex sibling increases men's earnings and family formation outcomes (marriage and number of children), as compared to an opposite-sex sibling. Women with a same-sex sibling also earn more and are somewhat more likely to form a family in the singleton sample. A large part of the positive effect on men's income can be explained by competition among brothers. Women on the other hand seem to benefit from sisters because of shared labor market networks. The effects on family formation might stem from differential parental treatment for men, and from competition between sisters for women.}},
  author       = {{Peter, Noemi and Lundborg, Petter and Mikkelsen, Sara and Webbink, Dinand}},
  keywords     = {{sibling gender; sex composition; twins; income; schooling; fertility; J00; J13; J16; J24}},
  language     = {{eng}},
  note         = {{Working Paper}},
  number       = {{2018:3}},
  series       = {{Working Papers}},
  title        = {{The Effect of a Sibling's Gender on Earnings, Education and Family Formation}},
  url          = {{https://swopec.hhs.se/lunewp/abs/lunewp2018_003.htm}},
  year         = {{2018}},
}