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The Early Childhood Determinants Of Time Preferences

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Author Info
Liam Delaney (UCD Geary Institute, UCD School of Economics, & UCD School of Public Health and Population Science, University College Dublin)
Orla Doyle (UCD Geary Institute & UCD School of Public Health and Population Science, University College Dublin)

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Abstract

Research on time preference formation and socioeconomic differences in discounting has received little attention to date. This article examines the extent to which early childhood differences emerge in measures of hyperactivity, impulsivity and persistence, all of which are good psychometric analogues to how economists conceptualise discounting. We examine the distribution of these traits measured at age three across parental social class and analyse the extent to which different mechanism plausibly generate the observed social class distribution. In addition, we control for a wide ranging of potentially mediating factors including parental investment and proxies for maternal time preferences. Our results show substantial social class variations across all measures. We find only weak evidence that this relates to differential maternal time preferences (e.g. savings behaviour, abstaining from smoking) but relatively stronger evidence that these traits are transmitted through the parents own non-cognitive skill set (self-esteem, attachment etc.) and parental time investments (e.g. time spent reading to the child and teaching the child to write, sing etc.).

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File URL: http://geary.ucd.ie/images/Publications/WorkingPapers/gearywp200834.pdf
File Format: application/pdf
File Function: First version, 2008
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Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200834.

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Length: 28 pages
Date of creation: 15 Dec 2008
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Handle: RePEc:ucd:wpaper:200834

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  1. David M. Blau, 1999. "The Effect Of Income On Child Development," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 261-276, May. [Downloadable!] (restricted)
  2. Marco Cipriani & Paola Giuliano & Olivier Jeanne, 2007. "Like Mother Like Son? Experimental Evidence on the Transmission of Values from Parents to Children," IZA Discussion Papers 2768, Institute for the Study of Labor (IZA). [Downloadable!]
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  3. Dohmen, Thomas J & Falk, Armin & Huffman, David & Sunde, Uwe, 2008. "The Intergenerational Transmission of Risk and Trust Attitudes," CEPR Discussion Papers 6844, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  4. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December. [Downloadable!]
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  5. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. David M. Bishai, 2004. "Does time preference change with age?," Journal of Population Economics, Springer, vol. 17(4), pages 583-602, December. [Downloadable!] (restricted)
  7. Becker, Gary S & Mulligan, Casey B, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 729-58, August.
  8. Orla Doyle & Colm Harmon & James J. Heckman & Richard E. Tremblay, 2007. "Early Childhood Intervention. Rationale, Timing and Efficacy," Working Papers 200705, Geary Institute, University College Dublin. [Downloadable!]
  9. Bettinger, Eric & Slonim, Robert, 2007. "Patience among children," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 343-363, February. [Downloadable!] (restricted)
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