Firstborns Versus Later-borns: Same Resources, Different Outcomes. An Extension of Resources Dilution Theory

Abstract

Abstract Resources Dilution theory predicts a trade-off between quantity and quality of children in the household. According to the theory, eldest kids would achieve higher educational outcomes than later-born siblings because of more resources allocated to them. In this paper, we attempted to examine whether the theory holds even when household resources are evenly distributed to both siblings. By using the dataset of the Young Lives School Survey in Ethiopia conducted respectively in 2012/13 and 2016/17, we found that, while firstborns shown to be 3% more efficient, second and third-borns were significantly 1% more efficient than later-born siblings. We suggest that even if household resources are evenly distributed, elder kids would attain higher educational outcome than later-born children. This study underlines the importance of birth order on opportunities and inequalities among siblings, which may guide policymakers on designing appropriate maternity leave, school funding, and human capital improvement policies that would support later-borns.