Socio-economic status and inequalities in children's IQ and economic preferences / Thomas Deckers (University of Bonn), Armin Falk (University of Bonn, briq and IZA), Fabian Kosse (University of Bonn, briq and IZA), Pia Pinger (University of Bonn, briq and IZA), Hannah Schildberg-Hörisch (DICE, University of Düsseldorf and IZA) ; IZA Institute of Labor Economics
VerfasserDeckers, Thomas ; Falk, Armin ; Kosse, Fabian ; Dovern-Pinger, Pia Rosina ; Schildberg-Hörisch, Hannah
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, November 2017
Elektronische Ressource
Umfang1 Online-Ressource (24 Seiten) : Illustrationen, Diagramme
SerieDiscussion paper ; no. 11158
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Socio-economic status and inequalities in children's IQ and economic preferences [0.74 mb]
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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 childs 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.