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Parental risk attitudes and children's secondary school track choice

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  • Wölfel, Oliver
  • Heineck, Guido

Abstract

Although it is well-known that individuals’ risk attitudes are related to behavioral outcomes such as smoking, portfolio decisions, and educational attainment, there is virtually no evidence of whether parental risk attitudes affect the educational attainment of their dependent children. We add to this literature and examine children's secondary school track choice in Germany where tracking occurs at age ten and has a strong binding character. Using risk indicators for different domains, we mainly find evidence of an inverse relation between parental risk aversion and children's secondary school track, with some heterogeneity depending on whether parents’ risk willingness is modeled separately or jointly, by child gender, or by the risk measure used.

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Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 31 (2012)
Issue (Month): 5 ()
Pages: 727-743

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Handle: RePEc:eee:ecoedu:v:31:y:2012:i:5:p:727-743

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Web page: http://www.elsevier.com/locate/econedurev

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Keywords: School choice; Human capital; Risk attitudes;

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Cited by:
  1. Schlitte, Friso, 2010. "Local human capital, segregation by skill, and skill-specific employment growth," HWWI Research Papers 1-32, Hamburg Institute of International Economics (HWWI).
  2. Hammermann, Andrea & Mohnen, Alwine, 2012. "Who Benefits from Benefits? Empirical Research on Tangible Incentives," IZA Discussion Papers 6284, Institute for the Study of Labor (IZA).
  3. Achatz, Juliane & Trappmann, Mark, 2011. "Arbeitsmarktvermittelte Abgänge aus der Grundsicherung : der Einfluss von personen- und haushaltsgebundenen Barrieren," IAB Discussion Paper 201102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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