No. 1789: Birth Order, Educational Attainment and Earnings: An Investigation Using the PSID
published in: Journal of Human Resources, 2006, 41(4), 755-777
Whether siblings of specific birth order perform differently has been a longstanding open empirical question. We use the family tree structure of the PSID to examine two claims found in the literature: whether being early in the birth order implies a distinct educational advantage, and whether there exists, within large families, a pattern of falling then rising attainment with respect to birth order, to the point where it becomes best to be last-born. Drawing from OLS and family fixed effects estimations, we find that being first-born confers a significant educational advantage that persists when considering earnings; being last-born confers none.