Intergenerational transmission of risk attitudes - A revealed preference approach

Necker S, Voskort A (2014)

Publication Type: Journal article

Publication year: 2014

Journal

European Economic Review Elsevier

Book Volume: 65

Pages Range: 66-89

DOI: 10.1016/j.euroecorev.2013.10.005

Abstract

This study investigates whether children and parents show a similar willingness to take risk in their choice of occupation. Using data from the German Socio-Economic Panel, we calculate the occupational variation in earnings unexplained by human capital differences to obtain a measure of occupational risk. We find that fathers' earnings risk is significantly positively related to sons' earnings risk. The same link is found when unemployment risk is considered. However, a conclusion indicated by previous studies based on self-reports of individuals' risk attitude as well as our findings is that intergenerational transmission is weak in terms of effect size. © 2013 Elsevier B.V.

Authors with CRIS profile

Sarah Necker

Additional Organisation(s)

Lehrstuhl für Volkswirtschaftslehre

Involved external institutions

Albert-Ludwigs-Universität Freiburg DE Germany (DE) Bundesanstalt für Finanzdienstleistungsaufsicht BaFin DE Germany (DE)

How to cite

APA:

Necker, S., & Voskort, A. (2014). Intergenerational transmission of risk attitudes - A revealed preference approach. European Economic Review, 65, 66-89. https://doi.org/10.1016/j.euroecorev.2013.10.005

MLA:

Necker, Sarah, and Andrea Voskort. "Intergenerational transmission of risk attitudes - A revealed preference approach." European Economic Review 65 (2014): 66-89.

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