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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
  • Teodora Boneva
  • Thomas Crossley

    ()

    (Institute for Fiscal Studies and University of Essex)

  • Seda Ertac

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: Jun 2013
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Handle: RePEc:ifs:ifsewp:13/12
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  1. Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe, 2007. "Are Risk Aversion and Impatience Related to Cognitive Ability?," IZA Discussion Papers 2735, Institute for the Study of Labor (IZA).
  2. 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.
  3. Black, Sandra E. & Devereux, Paul J. & Salvanes, Kjell G., 2008. "Like Father, Like Son? A Note on the Intergenerational Transmission of IQ Scores," IZA Discussion Papers 3651, Institute for the Study of Labor (IZA).
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  7. Lisa R. Anderson & Jennifer M. Mellor, 2007. "Predicting Health Behaviors with an Experimental Measure of Risk Preference," Working Papers 59, Department of Economics, College of William and Mary.
  8. Pedro Carneiro & Costas Meghir & Matthias Parey, 2013. "Maternal Education, Home Environments, And The Development Of Children And Adolescents," Journal of the European Economic Association, European Economic Association, vol. 11, pages 123-160, 01.
  9. Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe & Schupp, Jürgen & Wagner, Gert G., 2011. "Individual risk attitudes: Measurement, determinants, and behavioral consequences," Munich Reprints in Economics 20048, University of Munich, Department of Economics.
  10. Gneezy, U. & Potters, J.J.M., 1996. "An experiment on risk taking and evaluation periods," Discussion Paper 1996-61, Tilburg University, Center for Economic Research.
  11. Rützler, Daniela & Sutter, Matthias & Kocher, Martin G. & Trautmann, Stefan T., 2011. "Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48720, Verein für Socialpolitik / German Economic Association.
  12. Zumbühl, Maria & Dohmen, Thomas & Pfann, Gerard A., 2013. "Parental Investment and the Intergenerational Transmission of Economic Preferences and Attitudes," IZA Discussion Papers 7476, Institute for the Study of Labor (IZA).
  13. Seda Ertac & Mehmet Y. Gurdal, 2010. "Deciding to Decide: Gender, Leadership and Risk-Taking in Groups," Koç University-TUSIAD Economic Research Forum Working Papers 1028, Koc University-TUSIAD Economic Research Forum.
  14. Eric Bettinger & Robert Slonim, 2006. "Patience among children," Artefactual Field Experiments 00043, The Field Experiments Website.
  15. David, Cesarini & Dawes, Christopher T. & Johannesson, Magnus & Lichtenstein, Paul & Wallace, Björn, 2007. "Genetic Variation in Preferences for Giving and Risk-Taking," SSE/EFI Working Paper Series in Economics and Finance 679, Stockholm School of Economics, revised 12 Jan 2009.
  16. Kate Krause & Lise Vesterlund & William Harbaugh, 2002. "Risk attitudes of children and adults: Choices over small and large probability gains and losses," Artefactual Field Experiments 00055, The Field Experiments Website.
  17. Doepke, Matthias & Zilibotti, Fabrizio, 2014. "Parenting with Style: Altruism and Paternalism in Intergenerational Preference Transmission," CEPR Discussion Papers 10029, C.E.P.R. Discussion Papers.
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  20. repec:ner:tilbur:urn:nbn:nl:ui:12-73908 is not listed on IDEAS
  21. Rachel Croson & Uri Gneezy, 2009. "Gender Differences in Preferences," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 448-74, June.
  22. Cramer, J. S. & Hartog, J. & Jonker, N. & Van Praag, C. M., 2002. "Low risk aversion encourages the choice for entrepreneurship: an empirical test of a truism," Journal of Economic Behavior & Organization, Elsevier, vol. 48(1), pages 29-36, May.
  23. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
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