Studies on family background often explain the negative effect of sibship size on educational attainment by one of two theories: the Confluence Model (CM) or the Resource Dilution Hypothesis (RDH). However, as both theories - for substantively different reasons - predict that sibship size should have a negative effect on educational attainment most studies cannot distinguish empirically between the CM and the RDH. In this paper, I use the different theoretical predictions in the CM and RDH on the role of cognitive ability as a partial or complete mediator of the effect of sibship size to distinguish the two theories and to identify a unique RDH effect on educational attainment. Using sibling data from the Wisconsin Longitudinal Study (WLS) and a random effect Instrumental Variable model I find that, in addition to a negative effect on cognitive ability, sibship size also has a strong negative effect on educational attainment which is uniquely explained by the RDH.
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| http://dx.doi.org/10.1016/j.rssm.2009.01.002 | DOI Listing |
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