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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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    File URL: http://eaf.ku.edu.tr/sites/eaf.ku.edu.tr/files/erf_wp_1313.pdf
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    References listed on IDEAS

    as
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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 experiments.;

    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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