Socio-Economic Status and Inequalities in Children's IQ and Economic Preferences

63 Pages Posted: 5 Dec 2017

See all articles by Thomas Deckers

Thomas Deckers

University of Bonn

Armin Falk

University of Bonn - Economic Science Area; briq - Institute on Behavior & Inequality

Fabian Kosse

Ludwig Maximilian University of Munich (LMU)

Pia R. Pinger

University of Bonn

Hannah Schildberg-Hörisch

Heinrich-Heine-Universität Düsseldorf; IZA Institute of Labor Economics

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.

Keywords: socio-economic status, time preferences, risk preferences, altruism, experiments with children, origins of preferences, human capital

JEL Classification: C90, D64, D90, D81, J13, J24, J62

Suggested Citation

Deckers, Thomas and Falk, Armin and Kosse, Fabian and Pinger, Pia R. and Schildberg-Hörisch, Hannah, Socio-Economic Status and Inequalities in Children's IQ and Economic Preferences. IZA Discussion Paper No. 11158, Available at SSRN: https://ssrn.com/abstract=3081390

Thomas Deckers (Contact Author)

University of Bonn ( email )

Regina-Pacis-Weg 3
Postfach 2220
Bonn, D-53012
Germany

Armin Falk

University of Bonn - Economic Science Area ( email )

briq - Institute on Behavior & Inequality

Schaumburg-Lippe-Straße 5-9
Bonn, 53113
Germany

HOME PAGE: http://www.briq-institute.org/

Fabian Kosse

Ludwig Maximilian University of Munich (LMU) ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

Pia R. Pinger

University of Bonn ( email )

Hannah Schildberg-Hörisch

Heinrich-Heine-Universität Düsseldorf ( email )

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
210
Abstract Views
904
rank
162,181
PlumX Metrics