DEPARTMENT OF ECONOMICS JOHANNES KEPLER UNIVERSITY OF LINZ Birth Order, Parental Health Investment, and Health in Childhood by Gerald J. Pruckner Nicole Schneeweis Thomas Schober Martina Zweimüller Working Paper No. 1916 August 2019 Johannes Kepler University of Linz Department of Economics Altenberger Strasse 69 A-4040 Linz - Auhof, Austria www.econ.jku.at
[email protected] Birth Order, Parental Health Investment, and Health in Childhood∗ Gerald J. Prucknera,b, Nicole Schneeweisa,c,d, Thomas Schobera,b, Martina Zweimuller¨ a aJohannes Kepler University Linz, Austria bChristian Doppler Laboratory for Aging, Health, and the Labor Market, Austria cIZA, Institute for the Study of Labor, Bonn, Germany dCEPR, Centre for Economic Policy Research, London August 9, 2019 Abstract Research has shown that cognitive and non-cognitive skills, education and earn- ings decrease with birth order. Less is known about birth order effects on health. This paper provides a comprehensive analysis of the relationship between birth or- der, health at birth and in childhood, and parental health investment. High-quality administrative data on children born in Austria between 1984 and 2015 allow us to exploit within-family variation in birth order to account for confounding family- level factors. In a sample of families with two to four children, we find statistically significant and quantitatively important birth order effects on health at birth and in primary school. These birth order effects are positive, in that later-born siblings are healthier than the first-born child, and increase with birth order. Consequently, first-born children are more likely to consume medical drugs and to utilize inpatient and outpatient medical services.