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Evaluating Intergenerational Persistence of Economic Preferences: A Large Scale Experiment with Families in Bangladesh

Author

Listed:
  • Chowdhury, Shyamal

    (University of Sydney)

  • Sutter, Matthias

    (Max Planck Institute for Research on Collective Goods)

  • Zimmermann, Klaus F.

    (University of Bonn)

Abstract

Economic preferences – like time, risk and social preferences – have been shown to be very influential for real-life outcomes, such as educational achievements, labor market outcomes, or health status. We contribute to the recent literature that has examined how and when economic preferences are formed, putting particular emphasis on the role of intergenerational transmission of economic preferences within families. Our paper is the first to run incentivized experiments with fathers and mothers and their children by drawing on a unique dataset of 1,999 members of Bangladeshi families, including 911 children, aged 6-17 years, and 544 pairs of mothers and fathers. We find a large degree of intergenerational persistence as the economic preferences of mothers and fathers are significantly positively related to their children's economic preferences. Importantly, we find that socio-economic status of a family has no explanatory power as soon as we control for parents' economic preferences. A series of robustness checks deals with the role of older siblings, the similarity of parental preferences, and the average preferences within a child's village.

Suggested Citation

  • Chowdhury, Shyamal & Sutter, Matthias & Zimmermann, Klaus F., 2018. "Evaluating Intergenerational Persistence of Economic Preferences: A Large Scale Experiment with Families in Bangladesh," IZA Discussion Papers 11337, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11337
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Evaluating Intergenerational Persistence of Economic Preferences: A Large Scale Experiment with Families in Bangladesh
      by maximorossi in NEP-LTV blog on 2018-10-24 12:44:24
    2. Evaluating Intergenerational Persistence of Economic Preferences: A Large Scale Experiment with Families in Bangladesh
      by maximorossi in NEP-LTV blog on 2018-04-03 13:29:30
    3. Evaluating intergenerational persistence of economic preferences: A large scale experiment with families in Bangladesh
      by maximorossi in NEP-LTV blog on 2018-05-17 20:22:25

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    Cited by:

    1. John A. List & Ragan Petrie & Anya Samek, 2021. "How Experiments with Children Inform Economics," NBER Working Papers 28825, National Bureau of Economic Research, Inc.
    2. Anne Sofie Beck Knudsen, 2019. "Those Who Stayed: Individualism, Self-Selection and Cultural Change during the Age of Mass Migration," Discussion Papers 19-01, University of Copenhagen. Department of Economics.
    3. Radoslaw Stefanski & Alex Trew, 2020. "Patience Breeds Interest: The Rise of Societal Patience and the Fall of the Risk-free Interest Rate," CDMA Working Paper Series 202001, Centre for Dynamic Macroeconomic Analysis.
    4. Tim Friehe & Markus Pannenberg, 2020. "Time preferences and political regimes: evidence from reunified Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 349-387, January.
    5. Brenøe, Anne Ardila & Epper, Thomas, 2019. "Parenting Values Moderate the Intergenerational Transmission of Time Preferences," Economics Working Paper Series 1917, University of St. Gallen, School of Economics and Political Science.
    6. Pierre-André Chiappori & Edoardo Ciscato & Carla Guerriero, 2021. "Analyzing Matching Patterns in Marriage:Theory and Application to Italian Data," CSEF Working Papers 613, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    7. Samek, Anya & Gray, Andre & Datar, Ashlesha & Nicosia, Nancy, 2021. "Adolescent time and risk preferences: Measurement, determinants and field consequences," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 460-488.

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    More about this item

    Keywords

    intergenerational transmission of preferences; time preferences; risk preferences; social preferences; children; parents; Bangladesh; socio-economic status; experiment;
    All these keywords.

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D1 - Microeconomics - - Household Behavior
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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