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Parental socialisation effort and the intergenerational transmission of risk preferences

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Sule Alan & Nazli Baydar & Teodora Boneva & Thomas Crossley & Seda Ertac, 2013. "Parental socialisation effort and the intergenerational transmission of risk preferences," IFS Working Papers W13/12, Institute for Fiscal Studies.
  • Handle: RePEc:ifs:ifsewp:13/12
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    References listed on IDEAS

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    Cited by:

    1. Fabian Kosse & Thomas Deckers & Hannah Schildberg-Horisch & Armin Falk, 2016. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Working Papers 2016-011, Human Capital and Economic Opportunity Working Group.
    2. Schildberg-Hörisch, Hannah & Deckers, Thomas & Falk, Armin & Kosse, Fabian, 2014. "How Does Socio-Economic Status Shape a Child's Personality?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100285, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    risk preferences; intergenerational transmission; children's economic decisions; field experiements;

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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