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Parental socialisation effort and the intergenerational transmission of risk preferences

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  • Sule Alan

    ()
    (Institute for Fiscal Studies and University of Cambridge)

  • Nazli Baydar
  • Teodora Boneva
  • Thomas Crossley

    ()
    (Institute for Fiscal Studies and University of Essex)

  • Seda Ertac

Abstract

We study the transmission of risk attititudes in a unique survey of mothers and children in which both participated in an incentivised risk preference elicitation task. We document that risk preferences are correlated between mothers and children when the children are just 7 to 8 years old. This correlation is only present for daughters. We show that a measure of parental involvement is a strong moderator of the association between mothers' and daughers' risk tolerance. These findings support a role for socialisation in the intergenerational transmission of preferences that predict economic behaviour.

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Bibliographic Info

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W13/12.

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Date of creation: Jun 2013
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Handle: RePEc:ifs:ifsewp:13/12

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Keywords: risk preferences; intergenerational transmission; children's economic decisions; field experiements;

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