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Parenting with style: Altruism and paternalism in intergenerational preference transmission

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  • Matthias Doepke
  • Fabrizio Zilibotti

Abstract

We construct a theory of intergenerational preference transmission that rationalizes the choice between alternative parenting styles (related to Baumrind 1967). Parents maximize an objective function that combines Beckerian and paternalistic altruism towards children. They can affect their children’s choices via two channels: either by influencing their preferences or by imposing direct restrictions on their choice sets. Different parenting styles (authoritarian, authoritative, and permissive) emerge as equilibrium outcomes, and are affected both by parental preferences and by the socioeconomic environment. We consider two applications: patience and risk aversion. We argue that parenting styles may be important for explaining why different groups or societies develop different attitudes towards human capital formation, entrepreneurship, and innovation.

Suggested Citation

  • Matthias Doepke & Fabrizio Zilibotti, 2012. "Parenting with style: Altruism and paternalism in intergenerational preference transmission," ECON - Working Papers 104, Department of Economics - University of Zurich.
  • Handle: RePEc:zur:econwp:104
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    More about this item

    Keywords

    Intergenerational preference transmission; altruism; paternalism; entrepreneurship; innovation;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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