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Parental socialisation effort and the intergenerational transmission of risk preferences

  • Sule Alan

    ()

    (Institute for Fiscal Studies and University of Cambridge)

  • Nazli Baydar

    (Institute for Fiscal Studies)

  • Teodora Boneva

    (Institute for Fiscal Studies)

  • Thomas Crossley

    ()

    (Institute for Fiscal Studies and Institute for Fiscal Studies, University of Essex)

  • Seda Ertac

    ()

    (Institute for Fiscal Studies and Koc University)

We study the transmission of risk attititudes in a unique survey of mothers and children in which both participated in an incentivised risk preference elicitation task. We document that risk preferences are correlated between mothers and children when the children are just 7 to 8 years old. This correlation is only present for daughters. We show that a measure of parental involvement is a strong moderator of the association between mothers' and daughers' risk tolerance. These findings support a role for socialisation in the intergenerational transmission of preferences that predict economic behaviour.

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Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W13/12.

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Date of creation: 12 Jun 2013
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Handle: RePEc:ifs:ifsewp:13/12
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  16. Maria Zumbuehl & Thomas Dohmen & Gerard Pfann, 2013. "Parental Investment and the Intergenerational Transmission of Economic Preferences and Attitudes," SOEPpapers on Multidisciplinary Panel Data Research 570, DIW Berlin, The German Socio-Economic Panel (SOEP).
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  18. Steffen Andersen & Seda Ertac & Uri Gneezy & John A. List & Sandra Maximiano, 2013. "Gender, Competitiveness, and Socialization at a Young Age: Evidence From a Matrilineal and a Patriarchal Society," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1438-1443, October.
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