A Stairway to Success: How Parenting Shapes Culture and Social Stratification

This chapter argues that parenting choices are a central force in the joint evolution of culture and economic outcomes. We present a framework in which parents - motivated by both their children’s future success and their own normative beliefs - choose parenting styles and transmit cultural traits responding to economic incentives. Values such as work ethic, patience, and religiosity are more likely to be instilled when their anticipated returns, economic or otherwise, are high. The interaction between parenting and economic conditions gives rise to endogenous cultural and economic stratification. We extend the model to include residential sorting and social interactions, showing how neighborhood choice reinforces disparities in trust and human capital. Empirical evidence from the World Values Survey supports the model’s key predictions. We conclude by highlighting open questions at the intersection of parenting, culture, and inequality.