Beliefs, parental investments, and intergenerational persistence: A formal model
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Beliefs, parental investments, and intergenerational persistence: A formal model. / Hjorth-trolle, Anders.
I: Rationality and Society, Bind 30, Nr. 1, 2018, s. 108-154.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Beliefs, parental investments, and intergenerational persistence: A formal model
AU - Hjorth-trolle, Anders
PY - 2018
Y1 - 2018
N2 - Empirical research documents persistent socioeconomic and race gaps in parental investments in children. This article presents a formal model that describes the process through which parents’ beliefs about the returns on investments in children evolve over time in light of new information that they receive regarding the outcomes of past investments. The model, which is based on Bayesian learning, accounts for how parents of low socioeconomic status may come to underinvest in their children because they have false low beliefs about the returns on investments. Moreover, the model describes how beliefs are transmitted across generations, thus creating dynasties of underinvesting parents who reproduce inequalities in children’s socioeconomic outcomes. Finally, this article uses National Longitudinal Survey of Youth data to provide illustrative empirical evidence on key aspects of the proposed model. The main contribution of this article is to integrate parents’ beliefs about returns on investments into existing models of intergenerational transmissions.
AB - Empirical research documents persistent socioeconomic and race gaps in parental investments in children. This article presents a formal model that describes the process through which parents’ beliefs about the returns on investments in children evolve over time in light of new information that they receive regarding the outcomes of past investments. The model, which is based on Bayesian learning, accounts for how parents of low socioeconomic status may come to underinvest in their children because they have false low beliefs about the returns on investments. Moreover, the model describes how beliefs are transmitted across generations, thus creating dynasties of underinvesting parents who reproduce inequalities in children’s socioeconomic outcomes. Finally, this article uses National Longitudinal Survey of Youth data to provide illustrative empirical evidence on key aspects of the proposed model. The main contribution of this article is to integrate parents’ beliefs about returns on investments into existing models of intergenerational transmissions.
KW - Faculty of Social Sciences
KW - Beliefs
KW - formal modeling
KW - intergenerational transmission of resources
KW - parental investments
KW - rational choice theory
KW - utility function
U2 - 10.1177/1043463117754076
DO - 10.1177/1043463117754076
M3 - Journal article
VL - 30
SP - 108
EP - 154
JO - Rationality and Society
JF - Rationality and Society
SN - 1043-4631
IS - 1
ER -
ID: 222327833