@article {29038,
	title = {Signaling of Earlier-born Children{\textquoteright}s Endowments, Intra-household Allocation, and Birth-order Effects},
	journal = {Economic Modelling},
	volume = {108},
	year = {2022},
	pages = {105754},
	abstract = {This paper provides a new explanation for birth-order effects by considering the genetic similarity between siblings. We develop a quantity--quality trade-off model in which parents form their expectations of possible future children{\textquoteright}s endowments by observing the performance of their existing children. Our model shows that having a talented first child may weaken parents{\textquoteright} incentive to have additional children due to the substitution effect. However, it also may encourage a second birth due to the signaling effect. Without assuming that children of a specific birth order have a biological advantage or more parental attention, this model predicts a birth-order gap in parents{\textquoteright} human capital investment, the magnitude of which depends on the endowments of the first child and its predictive power as a signal of the potential endowment of a possible second child.},
	url = {https://www.sciencedirect.com/science/article/pii/S0264999321003436},
	author = {Xu Wei and Yi Zhou and Yimin Zhou}
}
