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Raising Children To Work Hard: Altruism, Work Norms And Social Insurance

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  • Lindbeck, Assar

    ()
    (Institute for International Economic Studies, Stockholm University)

  • Nyberg, Sten

    ()
    (Department of Economics, Stockholm University)

Abstract

Children who can count on support from altruistic parents may not try hard to succeed in the labor market. Moreover, parental altruism makes withdrawal of such support non-credible. To promote work effort, parents may want to instill norms which later cause their children to experience guilt or shame associated with failure to support themselves. While social insurance pools risk across families, we show that it also creates a free-rider problem among parents in terms of norm formation. We also examine the formation of norms requiring children to support their parents financially in old age.

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Bibliographic Info

Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number 691.

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Length: 44 pages
Date of creation: 02 May 2001
Date of revision:
Handle: RePEc:hhs:iiessp:0691

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Keywords: work norms; social insurance; altruism;

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