Working Paper: CEPR ID: DP18561
Authors: Rainer Kotschy; Uwe Sunde
Abstract: Recent evidence shows substantial heterogeneity in time, risk, and social preferences across and within populations; yet little is known about the dynamics of preference heterogeneity across generations. We apply a novel identification strategy based on dyadic differences in preferences using representative data for 80,000 individuals from 76 countries. Our results document that, among more recent birth cohorts, preferences are more similar across countries and gender gaps in preferences are smaller within countries. This decline in preference heterogeneity across cohorts relates to country-specific differences in preference endowments, population composition, and socioeconomic conditions during formative years, and points at global cultural convergence.
Keywords: Patience; Willingness to take risks; Trust; Prosociality; Cohort effects
JEL Codes: D01; J10; J11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| preference heterogeneity among recent birth cohorts (J79) | preference heterogeneity among earlier birth cohorts (J26) |
| globalization and technological progress (F69) | preference heterogeneity among birth cohorts (D15) |
| countryspecific differences in preference endowments and socioeconomic conditions (P36) | preference heterogeneity among birth cohorts (D15) |
| cohort trends (J11) | preference heterogeneity (D11) |