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Parental Socialization Effort and the Intergenerational Transmission of Risk Preferences

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Author Info

  • Sule Alan

    (Koç University)

  • Nazli Baydar

    (University of Washington, Koç University, Istanbul)

  • Teodora Boneva

    (University of Cambridge)

  • Thomas F. Crossley

    (Koç University, University of Cambridge, and Institute for Fiscal Studies, London)

  • Seda Ertac

    ()
    (Koç University)

Abstract

We study the transmission of risk attitudes in a unique survey of mothers and children in which both participated in an incentivized 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 daughters’ risk tolerance. These findings support a role for socialization in the intergenerational transmission of preferences that predict economic behaviour.

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File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1313.pdf
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Bibliographic Info

Paper provided by Koc University-TUSIAD Economic Research Forum in its series Koç University-TUSIAD Economic Research Forum Working Papers with number 1313.

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Length: 31 pages
Date of creation: Jun 2013
Date of revision:
Handle: RePEc:koc:wpaper:1313

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

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