Abstract
ABSTRACT We explore how sex preference affects family size, and whether there is a tradeoff between family size and educational outcomes. Taking into account the endogeneity in family size and allowing for heterogeneous effect, family size has a negative impact on measured educational outcomes. Each additional sibling reduces years of education by almost two years, decreases the probability of completing primary and secondary education, suggesting a strong quantity-quality tradeoff. Birth order has a sizeable positive effect, i.e. children in the higher birth order (later born) achieve educational outcomes. Due to the cultural son-preference in Pakistan, a strong negative education gender gap is found. However, our finding suggest that the birth order effect tends to mitigate this gender gap. Several channels are conjectured; further research is warranted.
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