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We study the transmission of risk attititudes in a unique survey of mothers and children in which both participated in an incentivised 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 daughers' risk tolerance. These findings support a role for socialisation in the intergenerational transmission of preferences that predict economic behaviour.
Authors
Research Fellow University of Michigan
Tom is a Research Fellow at IFS, a Research Professor for the Institute for Social Research at the University of Michigan.
Sule Alan
Nazli Baydar
Research Associate University of Bonn
Teodora is a Research Associate and a Professor of Applied Microeconomics at the Department of Economics at the University of Bonn.
Seda Ertac
Working Paper details
- DOI
- 10.1920/wp.ifs.2013.1312
- Publisher
- Institute for Fiscal Studies
Suggested citation
Alan, S et al. (2013). Parental socialisation effort and the intergenerational transmission of risk preferences. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/parental-socialisation-effort-and-intergenerational-transmission-risk-preferences (accessed: 20 April 2024).
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