Abstract:
This paper examines the role of sibling sex composition as a potential explanation of the transmission of parental advantages to the next generation. The presence of a brother affects the family environment and parents' decisions, influencing the siblings' labour market outcomes in the long term. The results show a negative effect of approximately 2% on the permanent income of women for the presence of a younger brother. This effect does not modify the intergenerational persistence of income. Regarding mechanisms, we find evidence that the effect is amplified when households face tighter budget constraints. Moreover, it is more pronounced in households with traditional gender norms, shaping permanent income, educational choices, and motherhood decisions. These findings underscore the importance of sociocultural mechanisms in accounting for the persistence of inequality.
