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Mums and their sons; Dads and their daughters: Panel Data Evidence of Parental Altruism across 14 EU Countries

  • Jose Alberto Molina

    (Department of Economic Analysis, University of Zaragoza, Spain)

  • Maria Navarro

    (Department of Economic Analysis, University of Zaragoza, Spain)

  • Ian Walker

    (Department of Economics, University of Warwick, UK)

We study how fathers’ and mothers’ income satisfaction correlate with the income satisfaction of their sons and daughters, as well as with other economic and sociodemographic variables. We estimate these correlations using data on parents and children in households surveyed in the eight waves of the European Community Household Panel-ECHP (1994-2001) for 14 EU countries. To assess the robustness of simple correlations to we exploit siblings in the Panel and we investigate the sensitivity of the estimates to the inclusion of other control variables. We also adopt a multi-level random effects ordered probit specification that exploits step-parents in the data to allow us to decompose nature from nurture effects. Our headline results suggest strong altruism effects, but these estimated effects differ across countries, differ between mothers and fathers, and are different between sons and daughters.

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File URL: http://www.ucd.ie/geary/static/publications/workingpapers/GearyWp200721.pdf
File Function: First version, 2007
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Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200721.

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Length: 42 pages
Date of creation: 12 Jun 2007
Date of revision:
Handle: RePEc:ucd:wpaper:200721
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  1. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
  2. Schwarze, Johannes & Winkelmann, Rainer, 2005. "What Can Happiness Research Tell Us About Altruism? Evidence from the German Socio-Economic Panel," IZA Discussion Papers 1487, Institute for the Study of Labor (IZA).
  3. D'Ambrosio, Conchita & Frick, Joachim R., 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," IZA Discussion Papers 1351, Institute for the Study of Labor (IZA).
  4. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
  5. Stefan Boes & Rainer Winkelmann, 2004. "Income and Happiness: New Results from Generalized Threshold and Sequential Models," SOI - Working Papers 0407, Socioeconomic Institute - University of Zurich.
  6. Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-66, December.
  7. Oswald, Andrew J., 2005. "On the Common Claim that Happiness Equations Demonstrate Diminishing Marginal Utility of Income," IZA Discussion Papers 1781, Institute for the Study of Labor (IZA).
  8. Blanchflower, David G. & Oswald, Andrew J., 2001. "Well-Being Over Time in Britain and the USA," The Warwick Economics Research Paper Series (TWERPS) 616, University of Warwick, Department of Economics.
  9. Johannes Schwarze, 2003. "Using Panel Data on Income Satisfaction to Estimate Equivalence Scale Elasticity," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(3), pages 359-372, 09.
  10. Clark, Andrew E. & Etilé, Fabrice & Postel-Vinay, Fabien & Senik, Claudia & Van der Straeten, Karine, 2004. "Heterogeneity in Reported Well-Being: Evidence from Twelve European Countries," IZA Discussion Papers 1339, Institute for the Study of Labor (IZA).
  11. Schwarze, Johannes, 2004. "Living Conditions of Children and Parental Well-Being – Evidence from German Data on Life Satisfaction," IZA Discussion Papers 1200, Institute for the Study of Labor (IZA).
  12. Sophia Rabe-Hesketh & Anders Skrondal & Andrew Pickles, 2004. "GLLAMM Manual," U.C. Berkeley Division of Biostatistics Working Paper Series 1160, Berkeley Electronic Press.
  13. Bernard M. S. van Praag & P. Frijters & Ada Ferrer-i-Carbonell, 2001. "The Anatomy of Subjective Well-Being," Discussion Papers of DIW Berlin 265, DIW Berlin, German Institute for Economic Research.
  14. Paul Frijters & John P. Haisken-DeNew & Michael A. Shields, 2004. "Money Does Matter! Evidence from Increasing Real Income and Life Satisfaction in East Germany Following Reunification," American Economic Review, American Economic Association, vol. 94(3), pages 730-740, June.
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