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Language group differences in time preferences: Evidence from primary school children in a bilingual city

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  • Sutter, Matthias
  • Angerer, Silvia
  • Glätzle-Rützler, Daniela
  • Lergetporer, Philipp

Abstract

We study differences in intertemporal choices across language groups in an incentivized experiment with 1154 children in a bilingual city. The sample consists of 86% of all primary school kids in Meran/Merano, where about half of the 38,000 inhabitants speak German, and the other half Italian, while both language groups live very close to each other. We find that German-speaking primary school children are about 16 percentage points more likely than Italian-speaking children to delay gratification in an intertemporal choice experiment. The difference remains significant in several robustness checks and when controlling for a broad range of factors, including risk attitudes, IQ, family background, or residential area. Hence, we are able to show that language group affiliation, which is often used as a proxy for culture, plays an important role in shaping economic preferences already early in life.

Suggested Citation

  • Sutter, Matthias & Angerer, Silvia & Glätzle-Rützler, Daniela & Lergetporer, Philipp, 2018. "Language group differences in time preferences: Evidence from primary school children in a bilingual city," European Economic Review, Elsevier, vol. 106(C), pages 21-34.
    • Handle: RePEc:eee:eecrev:v:106:y:2018:i:c:p:21-34
    DOI: 10.1016/j.euroecorev.2018.04.003
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    3. Astghik Mavisakalyan & Yashar Tarverdi & Clas Weber, 2022. "Heaven can wait: future tense and religiosity," Journal of Population Economics, Springer;European Society for Population Economics, vol. 35(3), pages 833-860, July.
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    5. Tang, Jintong & Yang, Jun & Ye, Wenping & Khan, Shaji A., 2021. "Now is the time: The effects of linguistic time reference and national time orientation on innovative new ventures," Journal of Business Venturing, Elsevier, vol. 36(5).
    6. Silvia Angerer & Daniela Glätzle-Rützler & Philipp Lergetporer & Matthias Sutter, 2021. "The effects of language on patience: an experimental replication study of the linguistic-savings hypothesis in Austria," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 7(1), pages 88-97, September.
    7. Filippini, Massimo & Wekhof, Tobias, 2021. "The effect of culture on energy efficient vehicle ownership," Journal of Environmental Economics and Management, Elsevier, vol. 105(C).
    8. Tai-Sen He & Yohanes E. Riyanto & Saori C. Tanaka & Katsunori Yamada, 2020. "Pronoun drop and prosocial behavior: experimental evidence from Japan," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(1), pages 13-25, June.
    9. Oasis Kodila‐Tedika & Sherif Khalifa, 2020. "Long‐term vision and economic development," The World Economy, Wiley Blackwell, vol. 43(11), pages 3088-3102, November.
    10. Yamamura, Eiji & Kang, Myong-Il & Ikeda, Shinsuke, 2020. "Effect of female elementary-school homeroom teachers on time preferences in adulthood," MPRA Paper 99860, University Library of Munich, Germany.
    11. Thijs Brouwer & Fabio Galeotti & Marie Claire Villeval, 2023. "Teaching Norms: Direct Evidence of Parental Transmission," The Economic Journal, Royal Economic Society, vol. 133(650), pages 872-887.
    12. Chen, Josie I. & He, Tai-Sen & Riyanto, Yohanes E., 2019. "The effect of language on economic behavior: Examining the causal link between future tense and time preference in the lab," European Economic Review, Elsevier, vol. 120(C).
    13. Zheng, Yeqiu & Gu, Yan & van Soest, Arthur, 2023. "Beyond financial knowledge and IQ: The effect of temporal values on pension planning, homeownership and financial wealth of natives and immigrants in the Netherlands," OSF Preprints 6cwk7, Center for Open Science.
    14. Clist, Paul & Hong, Ying-yi, 2023. "Do international students learn foreign preferences? The interplay of language, identity and assimilation," Journal of Economic Psychology, Elsevier, vol. 98(C).
    15. Friedman-Sokuler, Naomi & Justman, Moshe, 2020. "Gender, culture and STEM: Counter-intuitive patterns in Arab society," Economics of Education Review, Elsevier, vol. 74(C).
    16. Mavisakalyan, Astghik & Tarverdi, Yashar & Weber, Clas, 2020. "Paradise Postponed: Future Tense and Religiosity," GLO Discussion Paper Series 500, Global Labor Organization (GLO).
    17. Niklas Ziemann, 2022. "You will receive your money next week! Experimental evidence on the role of Future-Time Reference for intertemporal decision-making," CEPA Discussion Papers 56, Center for Economic Policy Analysis.

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    More about this item

    Keywords

    Intertemporal choice; Language; Culture; Children; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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