Economic Preferences across Generations and Family Clusters: A Large-Scale Experiment

Shyamal Chowdhury (), Matthias Sutter and Klaus Zimmermann ()
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Shyamal Chowdhury: University of Sydney

No 13451, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Economic preferences are important for lifetime outcomes such as educational achievements, health status, or labor market success. We present a holistic view of how economic preferences are related within families. In an experiment with 544 families (and 1,999 individuals) from rural Bangladesh we find a large degree of intergenerational persistence of economic preferences. Both mothers' and fathers' risk, time and social preferences are significantly (and largely to the same degree) positively correlated with their children's economic preferences, even when controlling for personality traits and socio-economic background data. We discuss possible transmission channels for these relationships within families and find indications that there is more than pure genetics at work. Moving beyond an individual level analysis, we are the first to classify a whole family into one of two clusters, with either relatively patient, risktolerant and pro-social members or relatively impatient, risk averse and spiteful members. Socio-economic background variables correlate with the cluster to which a family belongs to.

Keywords: Bangladesh; socio-economic status; economic preferences within families; family clusters; intergenerational transmission of preferences; time preferences; risk preferences; social preferences; experiment (search for similar items in EconPapers)
JEL-codes: C90 D1 D64 D81 D90 J13 J24 J62 (search for similar items in EconPapers)
Pages: 128 pages
Date: 2020-07
New Economics Papers: this item is included in nep-exp, nep-lma and nep-ltv
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Citations: View citations in EconPapers (7)

Published - published as 'Economic preferences across generations and family clusters: A large-scale experiment in a developing country' in: Journal of Political Economy, 2022, 130 (9), 2361-2410.

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Related works:
Working Paper: Economic preferences across generations and family clusters: A large-scale experiment (2020)
Working Paper: Economic preferences across generations and family clusters: A large-scale experiment (2020)
Working Paper: Economic preferences across generations and family clusters: A large-scale experiment (2020)
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