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Parenting with style: altruism and paternalism in intergenerational preference transmission


Doepke, Matthias; Zilibotti, Fabrizio (2014). Parenting with style: altruism and paternalism in intergenerational preference transmission. UBS Center Working Paper Series 8, University of Zurich : UBS International Center of Economics in Society.

Abstract

We develop a theory of intergenerational transmission of preferences that rationalizes the choice between alternative parenting styles (as set out in Baumrind 1967). Parents maximize an objective function that combines Beckerian altruism and paternalism towards children. They can affect their children's choices via two channels: either by influencing children's 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. Parenting style, in turn, feeds back into the children's welfare and economic success. The theory is consistent with the decline of authoritarian parenting observed in industrialized countries, and with the greater prevalence of more permissive parenting in countries characterized by low inequality.

Abstract

We develop a theory of intergenerational transmission of preferences that rationalizes the choice between alternative parenting styles (as set out in Baumrind 1967). Parents maximize an objective function that combines Beckerian altruism and paternalism towards children. They can affect their children's choices via two channels: either by influencing children's 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. Parenting style, in turn, feeds back into the children's welfare and economic success. The theory is consistent with the decline of authoritarian parenting observed in industrialized countries, and with the greater prevalence of more permissive parenting in countries characterized by low inequality.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
03 Faculty of Economics > UBS International Center of Economics in Society
Working Paper Series > UBS Center Working Paper Series
Dewey Decimal Classification:330 Economics
JEL Classification:D10, J10, O10, O40
Uncontrolled Keywords:Intergenerational preference transmission, altruism, paternalism, entrepreneurship, innovation
Language:English
Date:June 2014
Deposited On:09 Jul 2014 13:29
Last Modified:15 Aug 2017 12:46
Series Name:UBS Center Working Paper Series
Number of Pages:32
ISSN:2296-2751
Official URL:http://www.ubscenter.uzh.ch/static/wp/uceswp008.pdf
Related URLs:http://www.ubscenter.uzh.ch/en/publications/workingpapers

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