The effect of siblings’ education on school-entry in the Ethiopian highlands

The effects of sisters’ and brothers’ education on the annual school entry probability of boys and girls in rural Amhara are estimated, using within-household variation. There are negative effects of younger siblings’ school attendance on girls’ school entry, and positive effects of older brothers’ literacy only when they have left school. This is consistent with an impeding role of credit constraints. The long-run effects of educated siblings once they have left school are positive. This could be either due to siblings’ income contributions, easing credit constraints, due to changed perceptions about the benefits of education, or both. Oldest brothers receive less education than other boys, perhaps since they are meant to take over the family farm, making agricultural learning by doing more valuable.

► The effect of siblings’ education on school entry in rural Ethiopia is analyzed.
► Girls’ school entry is sensitive to credit constraints.
► Oldest boys are disadvantaged in education and younger boys favored.
► There are large positive effects of siblings’ education once they have left school.