Now showing 1 - 10 of 18
  • Publication
    The more the merrier? The effect of family composition on children's education
    (Institute for the Study of Labor, 2004-08) ; ;
    Among the perceived inputs in the “production” of child quality is family size; there is an extensive theoretical literature that postulates a tradeoff between child quantity and quality within a family. However, there is little causal evidence that speaks to this theory. Our analysis is able to overcome many limitations of the previous literature by using a rich dataset that contains information on the entire population of Norway over an extended period of time and allows us to match adult children to their parents and siblings. In addition, we use exogenous variation in family size induced by the birth of twins to isolate causation. Like most previous studies, we find a negative correlation between family size and children’s educational attainment. However, when we include indicators for birth order, the effect of family size becomes negligible. This finding is robust to the use of twin births as an instrument for family size. In addition, we find that birth order has a significant and large effect on children’s education; children born later in the family obtain less education. These findings suggest the need to revisit economic models of fertility and child “production”, focusing not only on differences across families but differences within families as well.
      375
  • Publication
    Healthy(?), Wealthy, and Wise - Birth Order and Adult Health
    (University College Dublin. School of Economics, 2015-07) ; ;
    While recent research finds strong evidence that birth order affects children’s outcomes such as education, IQ scores, and earnings, the evidence for effects on health is more limited. This paper uses a large dataset on the population of Norway and focuses on the effect of birth order on a range of health and health-related behaviors, outcomes not previously available in datasets of this magnitude. Interestingly, we find complicated effects of birth order. First-borns are more likely to be overweight, to be obese, and to have high blood pressure and high triglycerides. So, unlike education or earnings, there is no clear first-born advantage in health. However, later-borns are more likely to smoke and have poorer self-reported physical and mental health. They are also less likely to report that they are happy. We find that these effects are largely unaffected by conditioning on education and earnings, suggesting that these are not the only important pathways to health differentials by birth order. When we explore possible mechanisms, we find that smoking early in pregnancy is more prevalent for first pregnancies than for later ones. However, women are more likely to quit smoking during their first pregnancy than during later ones, and first-borns are more likely to be breast-fed. These findings suggest a role for early maternal investment in determining birth order effects on health.
      397
  • Publication
    Older and wiser? Birth order and IQ of young men
    (Institute for the Study of Labor, 2007-08) ; ;
    While recent research finds strong evidence that birth order affects children’s outcomes such as education and earnings, the evidence on the effects of birth order on IQ is decidedly mixed. This paper uses a large dataset on the population of Norway that allows us to precisely measure birth order effects on IQ using both cross-sectional and within-family methods. Importantly, irrespective of method, we find a strong and significant effect of birth order on IQ, and our results suggest that earlier born children have higher IQs. Our preferred estimates suggest differences between first-borns and second-borns of about one fifth of a standard deviation or approximately 3 IQ points. Despite these large average effects, birth order only explains about 3% of the within-family variance of IQ. When we control for birth endowments, the estimated birth order effects increase. Thus, our analysis suggests that birth order effects are not biologically determined. Also, there is no evidence that birth order effects occur because later-born children are more affected by family breakdown.
      759
  • Publication
    Does grief transfer across generations? In-utero deaths and child outcomes
    (University College Dublin. School of Economics, 2014-03) ; ;
    While much is now known about the effects of physical health shocks to pregnant women on the outcomes of the in-utero child, we know little about the effects of psychological stresses. One clear form of stress to the mother comes from the death of a parent. We examine the effects of the death of the mother's parent during pregnancy on both the short-run and the long-run outcomes of the infant. Our primary specification involves using mother fixed effects— comparing the outcomes of two children with the same mother but where a parent of the mother died during one of the pregnancies—augmented with a control for whether there is a death around the time of the pregnancy in order to isolate true causal effects of a bereavement during pregnancy. We find small negative effects on birth outcomes, and these effects are bigger for boys than for girls. The effects on birth outcomes seems to be driven by deaths due to cardiovascular causes suggesting that sudden deaths are more difficult to deal with. However, we find no evidence of adverse effects on adult outcomes. The results are robust to alternative specifications.
      405
  • Publication
    Small family, smart family? Family size and the IQ scores of young men
    (Institute for the Study of Labor, 2007-08) ; ;
    How do families influence the ability of children? Cognitive skills have been shown to be a strong predictor of educational attainment and future labor market success; as a result, understanding the determinants of cognitive skills can lead to a better understanding of children’s long run outcomes. This paper uses a large dataset on the male population of Norway and focuses on one family characteristic: the effect of family size on IQ. Because of the endogeneity of family size, we instrument for family size using twin births and sex composition. IV estimates using sex composition as an instrument show no negative effect of family size; however, IV estimates using twins imply that family size has a negative effect on IQ. Our results suggest that effect of family size depends on the type of family size intervention. We conclude that there are no important negative effects of expected increases in family size on IQ but that unexpected shocks to family size resulting from twin births have negative effects on the IQ of existing children.
      376
  • Publication
    Learning to Take Risks? The Effect of Education on Risk-Taking in Financial Markets
    (University College Dublin. School of Economics, 2015-04) ; ; ;
    We investigate whether acquiring more education when young has long-term effects on risktaking behavior in financial markets and whether the effects spill over to spouses and children. There is substantial evidence that more educated people are more likely to invest in the stock market. However, little is known about whether this is a causal effect of education or whether it arises from the correlation of education with unobserved characteristics. Using exogenous variation in education arising from a Swedish compulsory schooling reform in the 1950s and 1960s, and the wealth holdings of the population of Sweden in 2000, we estimate the effect of education on stock market participation and risky asset holdings. We find that an extra year of education increases stock market participation by about 2% for men but there is no evidence of any positive effect for women. More education also leads men to hold a greater proportion of their financial assets in stocks and other risky financial assets. We find no evidence of spillover effects from male schooling to the financial decisions of spouses or children.
      529
  • Publication
    From the cradle to the labor market? The effect of birth weight on adult outcomes
    (MIT Press Journals, Massachusets Institute, 2007-02) ; ;
    Lower birth weight babies have worse outcomes, both short-run in terms of one-year mortality rates and longer run in terms of educational attainment and earnings. However, recent research has called into question whether birth weight itself is important or whether it simply reflects other hard-to-measure characteristics. By applying within twin techniques using an unusually rich dataset from Norway, we examine the effects of birth weight on both short-run and long-run outcomes for the same cohorts. We find that birth weight does matter; despite short-run twin fixed effects estimates that are much smaller than OLS estimates, the effects on longer-run outcomes such as adult height, IQ, earnings, and education are significant and similar in magnitude to OLS estimates.
      1122Scopus© Citations 647
  • Publication
    Why the apple doesn't fall far : understanding intergenerational transmission of human capital
    (American Economic Association, 2005-03) ; ;
    This paper examines the causal relationship between parents' education and that of their children in Norway. In 1959, the Norwegian Parliament legislated a mandatory school reform. In addition, the reform standardized the curriculum and increased access to schools, since the nine years of mandatory school was eventually made available in all municipalities. Cohorts of parents born between 1947 and 1958 were included in the sample. In the case of the Norwegian reform, the increase in compulsory schooling had a significant effect on educational attainment at the bottom of the distribution. The primary effect of the reform was to reduce the proportion of people with fewer than nine years of education from 12 percent to three percent, with a new spike at nine years. For mothers, there is a positive effect of maternal education on the education of sons but no such relationship for daughters. The results indicate that the positive correlation between parents' education and children's education largely represents positive relationships between other factors that are correlated with education. These could be ability, family background, income, or other factors. It is also clear, however, that the effect of the reform on children's educational attainment is small, with only the mother/son pair demonstrating any real relationship.
      1076Scopus© Citations 437
  • Publication
    The more the merrier? The effect of family size and birth order on children's education
    (MIT Press Journals, Massachusets Institute, 2005-05) ; ;
    There is an extensive theoretical literature that postulates a trade-off between child quantity and quality within a family. However, there is little causal evidence that speaks to this theory. Using a rich data set on the entire population of Norway over an extended period of time, we examine the effects of family size and birth order on the educational attainment of children. We find a negative correlation between family size and children's education, but when we include indicators for birth order or use twin births as an instrument, family size effects become negligible. In addition, higher birth order has a significant and large negative effect on children's education. We also study adult earnings, employment, and teenage childbearing and find strong evidence for birth order effects with these outcomes, particularly among women. These findings suggest the need to revisit economic models of fertility and child "production," focusing not only on differences across families but differences within families as well.
      1854Scopus© Citations 703
  • Publication
    Too young to leave the nest? The effects of school starting age
    (Institute for the Study of Labor, 2008-04) ; ;
    Does it matter when a child starts school? While the popular press seems to suggest it does, there is limited evidence of a long-run effect of school starting age on student outcomes. This paper uses data on the population of Norway to examine the role of school starting age on longer-run outcomes such as IQ scores at age 18, educational attainment, teenage pregnancy, and earnings. Unlike much of the recent literature, we are able to separate school starting age from test age effects using scores from IQ tests taken outside of school, at the time of military enrolment, and measured when students are around age 18. Importantly, there is variation in the mapping between year and month of birth and the year the test is taken, allowing us to distinguish the effects of school starting age from pure age effects. We find evidence for a small positive effect of starting school younger on IQ scores measured at age 18. In contrast, we find evidence of much larger positive effects of age at test, and these results are very robust. We also find that starting school younger has a significant positive effect on the probability of teenage pregnancy, but has little effect on educational attainment of boys or girls. There appears to be a short-run positive effect on earnings of beginning school at a younger age; however, this effect has essentially disappeared by age 30. This pattern is consistent with the idea that starting school later reduces potential labor market experience at a given age for a given level of education; however, this becomes less important as individuals age.
      627