Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174068
Authors: 
Deckers, Thomas
Falk, Armin
Kosse, Fabian
Pinger, Pia
Schildberg-Hörisch, Hannah
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 11158
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.
Subjects: 
socio-economic status
time preferences
risk preferences
altruism
experiments with children
origins of preferences
human capital
JEL: 
C90
D64
D90
D81
J13
J24
J62
Document Type: 
Working Paper

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