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Intergenerational impact of early life exposure to trauma: Maternal exposure to the Korean War and risk aversion

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  • Kim, Young-Il Albert
  • Kim, Dongyoung

Abstract

This paper investigates the intergenerational effects of the Korean War exposure on risk aversion. We find that, in the first generation, the Korean War exposure made only mothers more risk-averse. However, the children of the affected mothers show significant negative intergenerational effects on risk attitudes. Parent-child attachment emerges as the key mechanism, consistent with the psychology literature. Both disassortative mating and differential fertility are ruled out as potential mechanisms, given that the treatment group neither exhibits disassortative mating nor has a different number of siblings. The adverse effects of early-life Korean War exposure on health capital may explain the poor parent–child attachment.

Suggested Citation

  • Kim, Young-Il Albert & Kim, Dongyoung, 2025. "Intergenerational impact of early life exposure to trauma: Maternal exposure to the Korean War and risk aversion," Journal of Comparative Economics, Elsevier, vol. 53(4), pages 937-953.
    • Handle: RePEc:eee:jcecon:v:53:y:2025:i:4:p:937-953
    DOI: 10.1016/j.jce.2025.06.002
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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