October 2006 | Thomas Dohmen, Armin Falk, David Huffman, Uwe Sunde
This paper investigates the intergenerational transmission of risk and trust attitudes, examining whether these crucial determinants of economic decision-making are passed from parents to children. The study uses survey questions that directly assess these attitudes and are validated by their predictive power in large-scale, incentive-compatible field experiments. The findings reveal a strong, significant, and robust correlation between parents' and children's responses, with children from smaller families and firstborns showing stronger influence by their parents in terms of risk attitudes. Interestingly, family size and birth order do not significantly impact trust attitudes. The transmission is relatively specific, as children's risk attitudes in specific contexts are strongly influenced by their parents' attitudes in those same contexts. Positive assortative mating based on risk and trust attitudes is also observed, reinforcing the impact of parents on children. These results have implications for understanding cultural transmission, social mobility, and persistent differences in behavior across countries. The study contributes to the literature by providing empirical evidence of the transmission of fundamental attitudes that drive economic decision-making.This paper investigates the intergenerational transmission of risk and trust attitudes, examining whether these crucial determinants of economic decision-making are passed from parents to children. The study uses survey questions that directly assess these attitudes and are validated by their predictive power in large-scale, incentive-compatible field experiments. The findings reveal a strong, significant, and robust correlation between parents' and children's responses, with children from smaller families and firstborns showing stronger influence by their parents in terms of risk attitudes. Interestingly, family size and birth order do not significantly impact trust attitudes. The transmission is relatively specific, as children's risk attitudes in specific contexts are strongly influenced by their parents' attitudes in those same contexts. Positive assortative mating based on risk and trust attitudes is also observed, reinforcing the impact of parents on children. These results have implications for understanding cultural transmission, social mobility, and persistent differences in behavior across countries. The study contributes to the literature by providing empirical evidence of the transmission of fundamental attitudes that drive economic decision-making.