Template-Type: ReDIF-Paper 1.0
Title: Socio-Economic Status and Inequalities in Children's IQ and Economic Preferences
Author-Name: Armin Falk
Author-Email: 
Author-Name: Fabian Kosse
Author-Email: 
Author-Name: Pia Pinger
Author-Email: pia.pinger@gmail.com
Author-Name: Hannah Schildberg-Hörisch
Author-Email:
Author-Name: Thomas Deckers
Author-Email: 
Classification-JEL: C90, D64, D90, D81, J13, J24, J62
Keywords: socio-economic status, time preferences, risk preferences, altruism, experiments with children, origins of preferences, human capital

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.

Note: 
Length: 77
Creation-Date: 2019-07
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp111
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2019_111