Sibling Rivalry: Evidence from China’s Compulsory Schooling Reform

Fang Guanfu () and Chen Yu
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Fang Guanfu: Shanghai University of International Business and Economics, No., Wenxiang Road, Songjiang District, 201620, Shanghai, China
Chen Yu: School of Business, Shanghai University of International Business and Economics, Lane 666, Wenhui Road, Songjiang University Town, Shanghai, China

The B.E. Journal of Economic Analysis & Policy, 2021, vol. 21, issue 2, 611-656

Abstract: This study investigates the causal effect of older siblings’ schooling on their younger siblings’ schooling and labor market outcomes by exploiting the temporal and geographical variations in the implementation of compulsory schooling laws in China. Reform exposure is quantified as the number of years that an individual is eligible for compulsory education. We find that older siblings’ exposure to compulsory schooling reform had negative impacts on their younger siblings’ academic achievement and labor market performance. We provide some suggestive evidence for the mechanism of resource reallocation within households. These findings suggest that we may be overestimating the social benefits of compulsory schooling reforms by ignoring the resources constraints within households and the spillover effects on siblings.

Keywords: compulsory schooling reform; educational achievement; labor market performance; sibling spillover (search for similar items in EconPapers)
JEL-codes: I21 I28 J12 J24 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1515/bejeap-2020-0210

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