Article Title
Firstborns Versus Later-borns: Same Resources, Different Outcomes. An Extension of Resources Dilution Theory
Abstract
Resource Dilution Theory predicts a trade-off between the quantity and quality of children in a household. According to the theory, eldest children generally achieve higher educational outcomes than their later-born siblings because they receive more resources. This paper examines whether the theory still holds when household resources are distributed equally among siblings. Using data from the Young Lives School Survey in Ethiopia, conducted in 2012/13 and 2016/17, we found that firstborns were, on average, 3% more efficient, while second- and third-born children were 1% more efficient than later-born siblings. These findings suggest that even when resources are evenly allocated, older children may still attain better educational outcomes. This study highlights the importance of birth order in shaping opportunities and inequalities among siblings, and it may help guide policymakers in designing maternity leave, school funding, and human capital development policies.