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Raising Children to Work Hard: Altruism, Work Norms and Social Insurance

Children who can count on support from altruistic parents may not try hard to succeed in the labor market. Moreover, parental altruism makes withdrawal of such support non-credible. To promote work effort, parents may want to instill norms which later cause their children to experience guilt or shame associated with failure to support themselves. While social insurance pools risk across families, we show that it also creates a free-rider problem among parents in terms of norm formation. We also examine the formation of norms requiring children to support their parents financially in old age.

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Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2001:5.

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Length: 37 pages
Date of creation: 02 May 2001
Date of revision:
Handle: RePEc:hhs:sunrpe:2001_0005
Contact details of provider: Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
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Fax: +46 8 16 14 25
Web page: http://www.ne.su.se/
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