Positional Concerns across Generations

Alpaslan Akay (), Peter Martinsson and Tewodros Tesemma ()
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Alpaslan Akay: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden, http://www.economics.gu.se
Tewodros Tesemma: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 GÖTEBORG, Sweden
Authors registered in the RePEc Author Service: Claire Cullen

No 859, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: Socio-economic comparisons (relative or positional concerns) have several implications for utility, poverty, and economic development. This paper contributes to a small but growing literature by investigating the intergenerational persistence of positional concerns in urban Ethiopia, one of the world’s poorest countries. Using a series of survey experiments, we elicit the degree of positionality for various goods with different characteristics: (i) material versus non-material and (ii) visible versus non-visible. Our results suggest that the positional concerns of parents significantly explain children’s level of positionality. The positional concerns are transmitted to children mainly by the positional preferences of their mothers. Our results are robust to alternative checks, including estimators and omitted variables. We also analyze potential transmission channels. We identify gender – stronger between mothers and daughters – and assortative mating of parents – stronger among parents married through love marriage – as the primary mechanisms underlying the observed transmission of positional preferences. We also discuss the implications of our findings on development policy.

Keywords: Positionality; Intergenerational Transmission; Survey Experiments (search for similar items in EconPapers)
JEL-codes: C60 C90 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2025-11-14
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