The Role of Family Risk Attitudes in Education and Intergenerational Mobility: An Empirical Analysis
AbstractThis paper analyses the role of family risk attitudes in intergenerational mobility in incomes and education. Based on 1984-2009 data of sons and fathers from the German Socio-Economic Panel Survey, there is evidence suggesting that sons with risk taking fathers have a significantly higher educational mobility and persistently higher income mobility than peers with risk averse fathers. They obtain significantly higher levels of education, which would be justified by modest evidence on higher returns to education. The relationship seems more complex for sons' own risk attitudes. Risk taking sons experience higher educational mobility, but there is no difference in income mobility to risk averse sons. There are no considerable differences in the levels of education, but modest evidence suggesting lower returns to education for risk taking sons. The findings improve the understanding of the intergenerational transmission mechanism of economic status and show that family risk attitudes impact economic mobility. The study suggests an important intergenerational link between fathers' risk attitudes and sons' levels of education, which has not received much attention in the literature.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 529.
Length: 52 p.
Date of creation: 2012
Date of revision:
Risk preferences; intergenerational mobility; educational mobility; social mobility; returns to education; intergenerational income elasticity; educational choice under uncertainty; SOEP;
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D8 - Microeconomics - - Information, Knowledge, and Uncertainty
- I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-01-19 (All new papers)
- NEP-DEM-2013-01-19 (Demographic Economics)
- NEP-EDU-2013-01-19 (Education)
- NEP-LAB-2013-01-19 (Labour Economics)
- NEP-UPT-2013-01-19 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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