Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69411 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 7108
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
We construct a theory of intergenerational preference transmission that rationalizes the choice between alternative parenting styles (related to Baumrind 1967). Parents maximize an objective function that combines Beckerian and paternalistic altruism towards children. They can affect their children's choices via two channels: either by influencing their preferences or by imposing direct restrictions on their choice sets. Different parenting styles (authoritarian, authoritative, and permissive) emerge as equilibrium outcomes, and are affected both by parental preferences and by the socioeconomic environment. We consider two applications: patience and risk aversion. We argue that parenting styles may be important for explaining why different groups or societies develop different attitudes towards human capital formation, entrepreneurship, and innovation.
Subjects: 
intergenerational preference transmission
altruism
paternalism
entrepreneurship
innovation
JEL: 
D10
J10
O10
O40
Document Type: 
Working Paper

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