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Journal of Political Economy Vol. 129 No. 9 2021

Socioeconomic Status and Inequalities in Children’s IQ and Economic Preferences

Armin Falk1,2; Fabian Kosse3; Pia Pinger4,2; Hannah Schildberg-Hörisch5; Thomas Deckers1

1 University of Bonn · 2 BRIQ Institute on Behavior and Inequality · 3 Ludwig-Maximilians-Universität München · 4 University of Cologne · 5 Heinrich Heine University Düsseldorf

Abstract

This paper explores inequalities in IQ and economic preferences between children from families of high and low socioeconomic status (SES). We document that children from high-SES families are more intelligent, patient, and altruistic as well as less risk seeking. To understand the underlying mechanisms, we propose a framework of how SES, parental investments, as well as maternal IQ and preferences influence a child’s IQ and preferences. Our results indicate that disparities in the level of parental investments hold substantial importance. In light of the importance of IQ and preferences for behaviors and outcomes, our findings offer an explanation for social immobility.

DOI
10.1086/714992
Volume
129
Issue
9
Pages
2504-2545
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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