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Parental Socialization Effort and the Intergenerational Transmission of Risk Preferences

Author

Listed:
  • Sule Alan

    (Koç University)

  • Nazli Baydar

    (University of Washington, Koç University, Istanbul)

  • Teodora Boneva

    (University of Cambridge)

  • Thomas F. Crossley

    (Koç University, University of Cambridge, and Institute for Fiscal Studies, London)

  • Seda Ertac

    (Koç University)

Abstract

We study the transmission of risk attitudes in a unique survey of mothers and children in which both participated in an incentivized 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 daughters’ risk tolerance. These findings support a role for socialization in the intergenerational transmission of preferences that predict economic behaviour.

Suggested Citation

  • Sule Alan & Nazli Baydar & Teodora Boneva & Thomas F. Crossley & Seda Ertac, 2013. "Parental Socialization Effort and the Intergenerational Transmission of Risk Preferences," Koç University-TUSIAD Economic Research Forum Working Papers 1313, Koc University-TUSIAD Economic Research Forum.
    • Handle: RePEc:koc:wpaper:1313
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    References listed on IDEAS

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    2. Schildberg-Hörisch, Hannah & Deckers, Thomas & Falk, Armin & Kosse, Fabian, 2014. "How Does Socio-Economic Status Shape a Child's Personality?," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100285, Verein für Socialpolitik / German Economic Association.
    3. James Andreoni & Michael Kuhn & John List & Anya Samek & Charles Sprenger, 2017. "Field experiments on the development of time preferences," Artefactual Field Experiments 00615, The Field Experiments Website.

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    More about this item

    Keywords

    risk preferences; intergenerational transmission; children's economic decisions; field experiments.;
    All these keywords.

    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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