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Intergenerational Transmission of Risk Attitudes: The Role of Gender, Parents and Grandparents in Burkina Faso

Author

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  • Sepahvand, Mohammad

    (Department of Economics)

  • Shahbazian, Roujman

    (Swedish Institute for Social Research, Stockholm University)

Abstract

This study investigates the intergenerational transmission of risk attitudes for three risk domains in Burkina Faso. First, our results shows a strong transmission of attitudes from parents to children. Although, estimates from intergenerational transmission of risk attitudes in developing countries should not be compared directly with those from developed countries, our results goes in the same direction as previous literature from Germany. That is risk attitudes are transmitted from; parents to children, local enviorment to children and positive assortative mating of parents strengthens the parents’ transmission of attitudes to her child. Second we analyze three generations of risk attitude transmission. Our results indicates that it exist a transmission of risk attitudes from grandparents to their grandchildren. The strength and significance of this socialization decreases when we control for parents risk attitudes. Third, since there are strong gender roles in Burkina Faso, we test if mothers and fathers transmission of risk attitudes on their daughter is the same as on their son. We find that mother’s transmission of risk attitudes is stronger on their daughters than sons. For fathers the pattern is reverse. However, our findings show that it exist a heterogenity in the transmission of risk attitudes in male and female dominated risk domains. This gives support for the gender-specific role model hypothesis in terms of risk attitudes.

Suggested Citation

  • Sepahvand, Mohammad & Shahbazian, Roujman, 2017. "Intergenerational Transmission of Risk Attitudes: The Role of Gender, Parents and Grandparents in Burkina Faso," Working Paper Series 2017:13, Uppsala University, Department of Economics.
    • Handle: RePEc:hhs:uunewp:2017_013
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    Cited by:

    1. Boschini, Anne & Dreber, Anna & von Essen, Emma & Muren, Astri & Ranehill, Eva, 2018. "Gender, risk preferences and willingness to compete in a random sample of the Swedish population," Working Paper Series 10/2018, Stockholm University, Swedish Institute for Social Research.
    2. François-Charles Wolff, 2020. "The intergenerational transmission of risk attitudes: Evidence from Burkina Faso," Review of Economics of the Household, Springer, vol. 18(1), pages 181-206, March.
    3. Mohammad H. Sepahvand & Roujman Shahbazian, 2021. "Sibling correlation in risk attitudes: evidence from Burkina Faso," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(1), pages 45-72, March.
    4. Fang, Guanfu & Li, Wei & Zhu, Ying, 2022. "The shadow of the epidemic: Long-term impacts of meningitis exposure on risk preference and behaviors," World Development, Elsevier, vol. 157(C).

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    More about this item

    Keywords

    risk attitudes; inter and multigenerational transmission; socialization; Burkina Faso;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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