IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc14/100285.html
   My bibliography  Save this paper

How Does Socio-Economic Status Shape a Child's Personality?

Author

Listed:
  • Schildberg-Hörisch, Hannah
  • Deckers, Thomas
  • Falk, Armin
  • Kosse, Fabian

Abstract

We show that parental socioeconomic status (SES) is a powerful predictor of many facets of a child's personality. The facets of personality we investigate encompass time preferences, risk preferences, and altruism that are important noncognitive skills, as well as crystallized, fluid, and overall IQ that represent cognitive skills. We measure parental SES by the mother's and father's average years of education and household income. Our results show that children from families with higher SES are more patient, less likely to be risk-seeking, and score higher on IQ tests. About 20 to 40% of this relationship can be explained by dimensions of a child's environment that are shown to di ffer by parental SES: quantity and quality of time parents spend with their children, parenting style, the mother's IQ and economic preferences, a child's initial conditions at birth, and family structure. Personality profiles that vary systematically with parental SES off er an explanation for social immobility.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:vfsc14:100285
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/100285/1/VfS_2014_pid_63.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Bart H.H. Golsteyn & Hans Grönqvist & Lena Lindahl, 2014. "Adolescent Time Preferences Predict Lifetime Outcomes," Economic Journal, Royal Economic Society, vol. 124(580), pages 739-761, November.
    2. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2012. "The Intergenerational Transmission of Risk and Trust Attitudes," Review of Economic Studies, Oxford University Press, vol. 79(2), pages 645-677.
    3. Jeffrey Carpenter & Erika Seki, 2011. "Do Social Preferences Increase Productivity? Field Experimental Evidence From Fishermen In Toyama Bay," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 612-630, April.
    4. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde & Jürgen Schupp & Gert G. Wagner, 2011. "Individual Risk Attitudes: Measurement, Determinants, And Behavioral Consequences," Journal of the European Economic Association, European Economic Association, vol. 9(3), pages 522-550, June.
    5. Golsteyn, B.H.H. & Grönqvist, H. & Lindahl, L., 2013. "Time preferences and lifetime outcomes," ROA Research Memorandum 019, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    6. Kosse, Fabian & Pfeiffer, Friedhelm, 2012. "Impatience among preschool children and their mothers," Economics Letters, Elsevier, vol. 115(3), pages 493-495.
    7. Matthias Doepke & Fabrizio Zilibotti, 2017. "Parenting With Style: Altruism and Paternalism in Intergenerational Preference Transmission," Econometrica, Econometric Society, vol. 85, pages 1331-1371, September.
    8. Matthias Sutter & Martin G. Kocher & Daniela Glätzle-Rützler & Stefan T. Trautmann, 2013. "Impatience and Uncertainty: Experimental Decisions Predict Adolescents' Field Behavior," American Economic Review, American Economic Association, vol. 103(1), pages 510-531, February.
    9. Cárdenas, Juan-Camilo & Dreber, Anna & von Essen, Emma & Ranehill, Eva, 2012. "Gender differences in competitiveness and risk taking: Comparing children in Colombia and Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 83(1), pages 11-23.
    10. James Heckman & Flavio Cunha, 2007. "The Technology of Skill Formation," American Economic Review, American Economic Association, vol. 97(2), pages 31-47, May.
    11. Anke Becker & Thomas Deckers & Thomas Dohmen & Armin Falk & Fabian Kosse, 2012. "The Relationship Between Economic Preferences and Psychological Personality Measures," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 453-478, July.
    12. Silke Anger & Guido Heineck, 2010. "Do smart parents raise smart children? The intergenerational transmission of cognitive abilities," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 1105-1132, June.
    13. MIchal Bauer & Julie Chytilova & Barbara Pertold-Gebicka, 2011. "Effects of Parental Background on Other-regarding Preferences in Children," CERGE-EI Working Papers wp450, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    14. repec:pri:cheawb:case_paxson_economic_status_paper is not listed on IDEAS
    15. Montizaan, Raymond M. & Vendrik, Maarten C.M., 2014. "Misery Loves Company: Exogenous shocks in retirement expectations and social comparison effects on subjective well-being," Journal of Economic Behavior & Organization, Elsevier, vol. 97(C), pages 1-26.
    16. Gary S. Becker & Casey B. Mulligan, 1997. "The Endogenous Determination of Time Preference," The Quarterly Journal of Economics, Oxford University Press, vol. 112(3), pages 729-758.
    17. Angerer, Silvia & Glätzle-Rützler, Daniela & Lergetporer, Philipp & Sutter, Matthias, 2016. "Cooperation and discrimination within and across language borders: Evidence from children in a bilingual city," European Economic Review, Elsevier, vol. 90(C), pages 254-264.
    18. Lex Borghans & Angela Lee Duckworth & James J. Heckman & Bas ter Weel, 2008. "The Economics and Psychology of Personality Traits," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    19. Christopher Chabris & David Laibson & Carrie Morris & Jonathon Schuldt & Dmitry Taubinsky, 2008. "Individual laboratory-measured discount rates predict field behavior," Journal of Risk and Uncertainty, Springer, vol. 37(2), pages 237-269, December.
    20. Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic Status and Health in Childhood: The Origins of the Gradient," American Economic Review, American Economic Association, vol. 92(5), pages 1308-1334, December.
    21. Anke Becker & Thomas Deckers & Thomas Dohmen & Armin Falk & Fabian Kosse, 2012. "The Relationship Between Economic Preferences and Psychological Personality Measures," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 453-478, July.
    22. James J. Heckman, 2008. "Schools, Skills, And Synapses," Economic Inquiry, Western Economic Association International, vol. 46(3), pages 289-324, July.
    23. Almlund, Mathilde & Duckworth, Angela Lee & Heckman, James & Kautz, Tim, 2011. "Personality Psychology and Economics," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 4, chapter 0, pages 1-181, Elsevier.
    24. Fehr, Ernst & Glätzle-Rützler, Daniela & Sutter, Matthias, 2013. "The development of egalitarianism, altruism, spite and parochialism in childhood and adolescence," European Economic Review, Elsevier, vol. 64(C), pages 369-383.
    25. repec:pri:cheawb:case_paxson_economic_status_paper.pdf is not listed on IDEAS
    26. Bettinger, Eric & Slonim, Robert, 2007. "Patience among children," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 343-363, February.
    27. Sule Alan & Nazli Baydar & Teodora Boneva & Thomas Crossley & Seda Ertac, 2013. "Parental socialisation effort and the intergenerational transmission of risk preferences," IFS Working Papers W13/12, Institute for Fiscal Studies.
    28. Angerer, Silvia & Glätzle-Rützler, Daniela & Lergetporer, Philipp & Sutter, Matthias, 2015. "Donations, risk attitudes and time preferences: A study on altruism in primary school children," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 67-74.
    29. Eric A. Hanushek & Ludger Woessmann, 2008. "The Role of Cognitive Skills in Economic Development," Journal of Economic Literature, American Economic Association, vol. 46(3), pages 607-668, September.
    30. Michal Bauer & Julie Chytilová & Barbara Pertold-Gebicka, 2014. "Parental background and other-regarding preferences in children," Experimental Economics, Springer;Economic Science Association, vol. 17(1), pages 24-46, March.
    31. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    32. Moreira, Bruno & Matsushita, Raul & Da Silva, Sergio, 2010. "Risk seeking behavior of preschool children in a gambling task," Journal of Economic Psychology, Elsevier, vol. 31(5), pages 794-801, October.
    33. Peter Burton & Shelley Phipps & Lori Curtis, 2002. "All in the Family: A Simultaneous Model of Parenting Style and Child Conduct," American Economic Review, American Economic Association, vol. 92(2), pages 368-372, May.
    34. Castillo, Marco & Ferraro, Paul J. & Jordan, Jeffrey L. & Petrie, Ragan, 2011. "The today and tomorrow of kids: Time preferences and educational outcomes of children," Journal of Public Economics, Elsevier, vol. 95(11), pages 1377-1385.
    35. Ida, Takanori & Goto, Rei, 2009. "Interdependency among addictive behaviours and time/risk preferences: Discrete choice model analysis of smoking, drinking, and gambling," Journal of Economic Psychology, Elsevier, vol. 30(4), pages 608-621, August.
    36. Delaney, Liam & Doyle, Orla, 2012. "Socioeconomic differences in early childhood time preferences," Journal of Economic Psychology, Elsevier, vol. 33(1), pages 237-247.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Why are richer people more successful?
      by nawmsayn in ZeeConomics on 2015-03-15 19:14:06

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andreoni, James & Kuhn, Michael A. & List, John A. & Samek, Anya & Sokal, Kevin & Sprenger, Charles, 2019. "Toward an understanding of the development of time preferences: Evidence from field experiments," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    2. Hetschko, Clemens & Preuss, Malte, 2020. "Income in jeopardy: How losing employment affects the willingness to take risks," Journal of Economic Psychology, Elsevier, vol. 79(C).
    3. Fairley, Kim & Sanfey, Alan G., 2020. "The role of demographics on adolescents’ preferences for risk, ambiguity, and prudence," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 784-796.
    4. Dasgupta, Utteeyo & Mani, Subha & Sharma, Smriti & Singhal, Saurabh, 2017. "Cognitive, Socioemotional and Behavioral Returns to College Quality," IZA Discussion Papers 10701, Institute of Labor Economics (IZA).
    5. Bigoni, Maria & Rattini, Veronica, 2018. "A Tale of Two Cities: An Experiment on Inequality and Preferences," IZA Discussion Papers 11758, Institute of Labor Economics (IZA).
    6. Hermes, Henning & Hett, Florian & Mechtel, Mario & Schmidt, Felix & Schunk, Daniel & Wagner, Valentin, 2020. "Do children cooperate conditionally? Adapting the strategy method for first-graders," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 638-652.
    7. Beine, Michel & Charness, Gary & Dupuy, Arnaud & Joxhe, Majlinda, 2020. "Shaking Things Up: On the Stability of Risk and Time Preferences," IZA Discussion Papers 13084, Institute of Labor Economics (IZA).
    8. Sutter, Matthias & Zoller, Claudia & Glätzle-Rützler, Daniela, 2019. "Economic behavior of children and adolescents – A first survey of experimental economics results," European Economic Review, Elsevier, vol. 111(C), pages 98-121.
    9. Khadjavi, Menusch & Nicklisch, Andreas, 2018. "Parents’ ambitions and children’s competitiveness," Journal of Economic Psychology, Elsevier, vol. 67(C), pages 87-102.
    10. Dasgupta, Utteeyo & Mani, Subha & Sharma, Smriti & Singhal, Saurabh, 2017. "Cognitive, Socioemotional and Behavioral Returns to College Quality," IZA Discussion Papers 10701, Institute of Labor Economics (IZA).
    11. Roth, Christopher & Wohlfart, Johannes, 2018. "Experienced inequality and preferences for redistribution," Journal of Public Economics, Elsevier, vol. 167(C), pages 251-262.
    12. Andreoni, James & Di Girolamo, Amalia & List, John A. & Mackevicius, Claire & Samek, Anya, 2020. "Risk preferences of children and adolescents in relation to gender, cognitive skills, soft skills, and executive functions," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 729-742.
    13. Sutter, Matthias & Feri, Francesco & Glätzle-Rützler, Daniela & Kocher, Martin G. & Martinsson, Peter & Nordblom, Katarina, 2018. "Social preferences in childhood and adolescence. A large-scale experiment to estimate primary and secondary motivations," Journal of Economic Behavior & Organization, Elsevier, vol. 146(C), pages 16-30.
    14. Gaitz, Jason & Schurer, Stefanie, 2017. "Bonus Skills: Examining the Effect of an Unconditional Cash Transfer on Child Human Capital Formation," IZA Discussion Papers 10525, Institute of Labor Economics (IZA).
    15. Kim, Byung-Yeon & Choi, Syngjoo & Lee, Jungmin & Lee, Sokbae & Choi, Kyunghui, 2017. "Do Institutions Affect Social Preferences? Evidence from Divided Korea," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 865-888.
    16. Shaheen, Abeer M. & Hamdan, Khaldoun M & Nassar, Omayyah S. & Alkaid Albqoor, Maha, 2020. "Determinants of child health status: Parent-reported health status in Jordan," Children and Youth Services Review, Elsevier, vol. 114(C).
    17. 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.
    18. Lima de Miranda, Katharina, 2019. "Mindfulness, preferences and well-being: Mindfulness predicts adolescents' field behaviour," Kiel Working Papers 2127, Kiel Institute for the World Economy (IfW).
    19. 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.
    20. Subha Mani & Saurabh Singhal & Smriti Sharma & Utteeyo Dasgupta, 2016. "Caste differences in behaviour and personality: Evidence from India," WIDER Working Paper Series 060, World Institute for Development Economic Research (UNU-WIDER).
    21. Riener, Gerhard & Wagner, Valentin, 2017. "Shying away from demanding tasks? Experimental evidence on gender differences in answering multiple-choice questions," Economics of Education Review, Elsevier, vol. 59(C), pages 43-62.
    22. Dániel Horn & Hubert János Kiss & Tünde Lénárd, 2021. "Gender differences in preferences of adolescents: evidence from a large-scale classroom experiment," CERS-IE WORKING PAPERS 2103, Institute of Economics, Centre for Economic and Regional Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Breitkopf, Laura & Chowdhury, Shyamal K. & Priyam, Shambhavi & Schildberg-Hörisch, Hannah & Sutter, Matthias, 2020. "Do economic preferences of children predict behavior?," DICE Discussion Papers 342, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Deckers, Thomas & Falk, Armin & Kosse, Fabian & Pinger, Pia & Schildberg-Hörisch, Hannah, 2017. "Socio-economic status and inequalities in children's IQ and economic preferences," DICE Discussion Papers 274, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    3. Armin Falk & Fabian Kosse, 2016. "Early childhood environment, breastfeeding and the formation of preferences," Working Papers 2016-036, Human Capital and Economic Opportunity Working Group.
    4. Fabian Kosse & Thomas Deckers & Pia Pinger & Hannah Schildberg-Hörisch & Armin Falk, 2020. "The Formation of Prosociality: Causal Evidence on the Role of Social Environment," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 434-467.
    5. Shyamal Chowdhury & Matthias Sutter & Klaus F. Zimmermann, 2018. "Evaluating Intergenerational Persistence of Economic Preferences: A Large Scale Experiment with Families in Bangladesh," CESifo Working Paper Series 6914, CESifo.
    6. Sutter, Matthias & Zoller, Claudia & Glätzle-Rützler, Daniela, 2019. "Economic behavior of children and adolescents – A first survey of experimental economics results," European Economic Review, Elsevier, vol. 111(C), pages 98-121.
    7. Koch, Alexander & Nafziger, Julia & Nielsen, Helena Skyt, 2015. "Behavioral economics of education," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 3-17.
    8. Chowdhury, Shyamal & Sutter, Matthias & Zimmermann, Klaus F, 2020. "Economic preferences across generations and family clusters: A large-scale experiment," CEPR Discussion Papers 14998, C.E.P.R. Discussion Papers.
    9. Lima de Miranda, Katharina, 2019. "Mindfulness, preferences and well-being: Mindfulness predicts adolescents' field behaviour," Kiel Working Papers 2127, Kiel Institute for the World Economy (IfW).
    10. Zubair, Maria & Khanum, Ayesha & Nasir, Marjan, 2018. "Transfer Of Behavioral Traits From Parents To Children: An Experimental Approach," MPRA Paper 92121, University Library of Munich, Germany.
    11. 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.
    12. Thiel, Hendrik & Thomsen, Stephan L., 2013. "Noncognitive skills in economics: Models, measurement, and empirical evidence," Research in Economics, Elsevier, vol. 67(2), pages 189-214.
    13. Lena Detlefsen & Andreas Friedl & Katharina Lima de Miranda & Ulrich Schmidt & Matthias Sutter, 2018. "Are economic preferences shaped by the family context? The impact of birth order and siblings’ sex composition on economic preferences," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2018_12, Max Planck Institute for Research on Collective Goods.
    14. Dohmen, Thomas, 2014. "Behavioral labor economics: Advances and future directions," Labour Economics, Elsevier, vol. 30(C), pages 71-85.
    15. Humphries, John Eric & Kosse, Fabian, 2017. "On the interpretation of non-cognitive skills – What is being measured and why it matters," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 174-185.
    16. Alan, Sule & Ertac, Seda, 2015. "Patience, self-control and the demand for commitment: Evidence from a large-scale field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 115(C), pages 111-122.
    17. Dániel Horn & Hubert János Kiss & Tünde Lénárd, 2021. "Gender differences in preferences of adolescents: evidence from a large-scale classroom experiment," CERS-IE WORKING PAPERS 2103, Institute of Economics, Centre for Economic and Regional Studies.
    18. Ingvild Almås & Alexander W. Cappelen & Kjell G. Salvanes & Erik Ø. Sørensen & Bertil Tungodden, 2016. "Willingness to Compete: Family Matters," Management Science, INFORMS, vol. 62(8), pages 2149-2162, August.
    19. Sutter, Matthias & Angerer, Silvia & Glätzle-Rützler, Daniela & Lergetporer, Philipp, 2018. "Language group differences in time preferences: Evidence from primary school children in a bilingual city," European Economic Review, Elsevier, vol. 106(C), pages 21-34.
    20. James Heckman & Tim Kautz, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," Working Papers 2013-019, Human Capital and Economic Opportunity Working Group.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc14:100285. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.