The Intergenerational Transmission of Attitudes: Analyzing Time Preferences and Reciprocity

Abstract

The present research adds to the question on intergenerational correlation of attitudes between parents and children. So far, it is not clear whether the transmission process is purely genetic or whether parents take an active role in socializing their children. The transmission of time preferences and reciprocity is analyzed by focusing on three aspects: (1) direct transmission from parents to children; (2) the impact of prevailling attitudes in children’s surrounding environment; (3) parents' positive assortative mating. The findings support all three channels. Differences in the size of the intergenerational correlation according to family or parental characteristics suggest that the process is not purely genetic. The present analysis is of even greater importance, as the analyzed attitudes determine economic success sustainably.