TY  - RPRT
        AU  - Deckers, Thomas
AU  - Falk, Armin
AU  - Kosse, Fabian
AU  - Pinger, Pia
AU  - Schildberg-Hörisch, Hannah
        TI  - Socio-Economic Status and Inequalities in Children's IQ and Economic Preferences
        PY  - 2017/Nov/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11158
        UR  - https://www.iza.org/publications/dp11158
        AB  - 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.
        KW  - origins of preferences
KW  - experiments with children
KW  - altruism
KW  - risk preferences
KW  - time preferences
KW  - socio-economic status
KW  - human capital
        ER  -