Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: The effects of older sisters’ and brothers’ literacy on the annual school entry and primary school grade progress probabilities of boys and girls are estimated using within-household variation. Older siblings’ literacy has positive effects, especially for same-sex siblings. The literacy of older sisters appears to be more beneficial than that of older brothers, not least since it has positive effects on school entry among both boys and girls, and since it has positive effects also when the sister has left the household. There are positive effects both from literate older siblings who left school and from literate older siblings who are still in school. This suggests that within-household education spillovers, rather than time-varying credit constraints, explain the positive sibling-dependency, since with credit constraints children in school would compete over scarce resources. The positive effects on school progress are limited to same-sex siblings who are still present in the household, suggesting every-day interactions to be important.

Keywords: Primary education; Ethiopia; Within-Household; Spillovers; Credit-Constraints

JEL-codes: D13; I21

24 pages, April 1, 2011

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