Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/250654 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 14993
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We estimate the effect of parental separation on the risk and trust attitudes of German adolescents using a large household survey dataset, which allows us to match respondents to their siblings and parents. Our results indicate that adolescents from separated families are less trusting but have the same risk tolerance as adolescents from non-separated families, even after conditioning on the attitudes of parents and other controls. This trust deficit persists into early adulthood. Moreover, for both trust and risk, we find that separation attenuates the transmission of preferences from father to child. Additional analyses point to reduced parental involvement and greater family conflict as potential mechanisms.
Subjects: 
family dissolution
divorce
preferences
risk
trust
intergenerational transmission
JEL: 
J12
J13
D91
D81
Document Type: 
Working Paper

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