The intergenerational transmission of risk attitudes: Evidence from Burkina Faso
- 20 Downloads
This paper investigates the intergenerational transmission of risk attitudes in the context of a low income country with a focus on rural–urban and gender differences. Our empirical analysis is based on a household survey completed in Burkina Faso in 2014 which asks family members about their willingness to take risk in various domains. We find a positive correlation between parental and child risk attitudes, which is higher for risk in driving and risk in general than for risk in finance. For risk in driving and risk in general, the parent-child correlation is lower in rural area than in urban area. Also, we evidence gender-specific effects of parental risk attitudes. The intergenerational correlation in risk attitudes is higher for daughters than for sons, the father–daughter correlation is lower than the father–son correlation and the mother–daughter correlation is higher than the mother–son correlation.
KeywordsRisk attitudes Intergenerational transmission Rural–urban location Gender Burkina Faso
JEL classificationD10 D81 J16
I would like to thank two anonymous reviewers and the co-editor, Charles Yuji Horioka, for their very helpful comments and suggestions on previous drafts. Any remaining errors are mine.
Compliance with ethical standards
Conflict of interest
The authors declare that they have no conflict of interest.
- Bisin, A., & Verdier, T. (2001). The economics of cultural transmission and socialization. In: In J. Benhabib, A. Bisin, M. O. Jackson, (eds.) Handbook of social economics (Vol. 1A). (pp. 339–416). Amsterdam: Elsevier.Google Scholar
- Boyd, R., & Richerson, P. J. (1985). Culture and the evolutionary process. Chicago: University of Chicago Press.Google Scholar
- de Brauw, A., & Eozenou, P. (2014). Measuring risk attitudes among Mozambican farmers. Journal of Development Studies, 111, 61–74.Google Scholar
- Cavalli Sforza, L. L., & Feldman, M. (1981). Cultural transmission and evolution: A quantitative approach. Princeton: Princeton University Press.Google Scholar
- Dustmann, C., Fasani, F., Meng, X., Minale, L. (2017), Risk attitudes and household migration decisions. IZA Discussion Paper Series, no. 10603.Google Scholar
- Sephavand, M., & Shahbazian, R. (2017), Intergenerational transmission of risk attitudes: The role of gender, parents and grandparents in Burkina Faso. Mimeo, Uppsala University.Google Scholar
- Tabetando, R. (2019), Parental risk aversion and educational investment: panel evidence from rural Uganda. Review of Economics of the Household, in press.Google Scholar
- Walelign, S.Z., Nielsen, M.R., Jiao, X., & Jacobsen, J.B. (2018). Is households’ risk attitude robust to different experimental payoffs? Applied Economics Letters, vol. 26, pp. 703–706.Google Scholar