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Socio-Economic Status and Inequalities in Children's IQ and Economic Preferences

Thomas Deckers (), Armin Falk, Fabian Kosse (), Pia Pinger and Schildberg-Hörisch, Hannah ()
Additional contact information
Thomas Deckers: University of Bonn
Fabian Kosse: briq
Schildberg-Hörisch, Hannah: Heinrich Heine University Düsseldorf

Authors registered in the RePEc Author Service: Hannah Schildberg-Hoerisch ()

No 11158, IZA Discussion Papers from Institute for the Study of Labor (IZA)

Abstract: This paper explores inequalities in IQ and economic preferences between children from high and low socio-economic status (SES) families. We document that children from high SES families are more intelligent, patient and altruistic, as well as less risk-seeking. To understand the underlying causes and mechanisms, we propose a framework of how parental investments as well as maternal IQ and economic preferences influence a child's IQ and preferences. Within this framework, we allow SES to influence both the level of parental time and parenting style investments, as well as the productivity of the investment process. Our results indicate that disparities in the level of parental investments hold substantial importance for SES gaps in economic preferences and, to a lesser extent, IQ. In light of the importance of IQ and preferences for behaviors and outcomes, our findings offer an explanation for social immobility.

Keywords: socio-economic status; time preferences; risk preferences; altruism; experiments with children; origins of preferences; human capital (search for similar items in EconPapers)
JEL-codes: C90 D64 D90 D81 J13 J24 J62 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe
Date: 2017-11
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Working Paper: Socio-Economic Status and Inequalities in Children’s IQ and Economic Preferences (2017) Downloads
Working Paper: Socio-economic status and inequalities in children's IQ and economic preferences (2017) Downloads
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