Intergeneration Preference Transmission in Physician Families: Evidence and Theory

Abstract

We study the intergeneration transmission of physicians' economic preferences by examining the risk and altruistic preferences of medical students and one of their parents with incentivized experiments. We find that altruistic parents are more likely to raise altruistic children who are also more likely to choose a medical major in university. Additionally, the self-selection effect based on social preferences among physicians becomes more prominent in the aftermath of the pandemic. In contrast, we do not find a significant correlation between risk preferences within families or with occupational choices.  We propose a theoretical framework capturing the intergeneration preference transmission and family-wise self-selection among (future) physicians. Lastly, we delve into the policy implications of our findings, offering insights into how intra-household support and risk-sharing mechanisms can help rectify the persistent market failure of inadequate labor supply in the medical industry.

Keywords: Intergenerational preference transmission, health economics, Risk and altruistic preferences, Family cluster