Why Parents Play Favorites: Explanations for Unequal Bequests

32 Pages Posted: 9 Jun 2003 Last revised: 3 Nov 2010

See all articles by Audrey Light

Audrey Light

Ohio State University (OSU) - Economics

Kathleen M. McGarry

University of California, Los Angeles (UCLA) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 2003

Abstract

Economists have invested a great deal of effort in trying to understand the motivation for family transfers, yet recent empirical work testing the seemingly appealing models of altruism and exchange has led to decidedly mixed results. A major stumbling block has been the lack of adequate data. We take a fresh look at the issue using responses to an innovative survey question that directly asks mother about the planned division of their estates. We find that both altruism and exchange are frequently offered as explanations of behavior and are of nearly equal importance. Furthermore, the explanations are consistent with observable characteristics of the mother, lending support to the validity of the question. We also find that among step or adopted families, genetic ties play an important role. Because motivating factors appear to differ across families the lack of a consensus among previous researchers about motives ought not to be surprising.

Suggested Citation

Light, Audrey and McGarry, Kathleen M., Why Parents Play Favorites: Explanations for Unequal Bequests (June 2003). NBER Working Paper No. w9745. Available at SSRN: https://ssrn.com/abstract=414244

Audrey Light

Ohio State University (OSU) - Economics ( email )

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Kathleen M. McGarry (Contact Author)

University of California, Los Angeles (UCLA) - Department of Economics ( email )

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National Bureau of Economic Research (NBER)

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