Birth Order and Transition into Adulthood in Madagascar

Using panel data from Madagascar, we investigate how birth order influences the transition to adulthood in a context of poverty. Earlier-born children often achieve lower education levels than their later-born siblings and also marry younger and begin working outside family activities earlier. Parental investment, such as quality time or gender preferences, does not significantly explain these differences. Instead, household liquidity constraints appear to push parents to depend on older children to generate savings that are used to support younger siblings’ education. Combining these findings with the existing literature, it seems that the liquidity-constraint channel may play a pivotal role, both across and within countries, in explaining the observed variations in firstborn advantage.