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Mums and their sons; Dads and their daughters: Panel Data Evidence of Parental Altruism across 14 EU Countries

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Author Info
Jose Alberto Molina (Department of Economic Analysis, University of Zaragoza, Spain)
Maria Navarro (Department of Economic Analysis, University of Zaragoza, Spain)
Ian Walker (Department of Economics, University of Warwick, UK)
Abstract

We study how fathers’ and mothers’ income satisfaction correlate with the income satisfaction of their sons and daughters, as well as with other economic and sociodemographic variables. We estimate these correlations using data on parents and children in households surveyed in the eight waves of the European Community Household Panel-ECHP (1994-2001) for 14 EU countries. To assess the robustness of simple correlations to we exploit siblings in the Panel and we investigate the sensitivity of the estimates to the inclusion of other control variables. We also adopt a multi-level random effects ordered probit specification that exploits step-parents in the data to allow us to decompose nature from nurture effects. Our headline results suggest strong altruism effects, but these estimated effects differ across countries, differ between mothers and fathers, and are different between sons and daughters.

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Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200721.

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Length: 42 pages
Date of creation: 12 Jun 2007
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Handle: RePEc:ucd:wpaper:200721

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  2. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2004. "GLLAMM Manual," U.C. Berkeley Division of Biostatistics Working Paper Series 1160, Berkeley Electronic Press. [Downloadable!]
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  4. David G. Blanchflower & Andrew J. Oswald, 2000. "Well-Being Over Time in Britain and the USA," NBER Working Papers 7487, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September. [Downloadable!] (restricted)
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  6. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June. [Downloadable!] (restricted)
  7. D'Ambrosio, Conchita & Frick, Joachim R., 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," IZA Discussion Papers 1351, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Boes, Stefan & Winkelmann, Rainer, 2004. "Income and Happiness: New Results from Generalized Threshold and Sequential Models," IZA Discussion Papers 1175, Institute for the Study of Labor (IZA). [Downloadable!]
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  9. Andrew J. Oswald, 2005. "On the Common Claim that Happiness Equations Demonstrate Diminishing Marginal Utility of Income," IZA Discussion Papers 1781, Institute for the Study of Labor (IZA). [Downloadable!]
  10. van Praag, B. M. S. & Frijters, P. & Ferrer-i-Carbonell, A., 2003. "The anatomy of subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 51(1), pages 29-49, May. [Downloadable!] (restricted)
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  11. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June. [Downloadable!]
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  13. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
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  14. Schwarze, Johannes, 2004. "Living Conditions of Children and Parental Well-Being - Evidence from German Data on Life Satisfaction," IZA Discussion Papers 1200, Institute for the Study of Labor (IZA). [Downloadable!]
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