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Intergenerational transmission of risk attitudes – A revealed preference approach

  • Necker, Sarah
  • Voskort, Andrea

This study investigates whether children and parents show a similar willingness to take risk in their choice of occupation. Using data from the German Socio-Economic Panel, we calculate the occupational variation in earnings unexplained by human capital differences to obtain a measure of occupational risk. We find that fathers' earnings risk is significantly positively related to sons' earnings risk. The same link is found when unemployment risk is considered. However, a conclusion indicated by previous studies based on self-reports of individuals' risk attitude as well as our findings is that intergenerational transmission is weak in terms of effect size.

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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 65 (2014)
Issue (Month): C ()
Pages: 66-89

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Handle: RePEc:eee:eecrev:v:65:y:2014:i:c:p:66-89
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