Working Paper: NBER ID: w20214
Authors: Matthias Doepke; Fabrizio Zilibotti
Abstract: We develop a theory of parent-child relations that rationalizes the choice between alternative parenting styles (as set out in Baumrind 1967). Parents maximize an objective function that combines Beckerian altruism and paternalism towards children. They can affect their children’s choices via two channels: either by influencing children’s preferences or by imposing direct restrictions on their choice sets. Different parenting styles (authoritarian, authoritative, and permissive) emerge as equilibrium outcomes and are affected both by parental preferences and by the socioeconomic environment. Parenting style, in turn, feeds back into the children’s welfare and economic success. The theory is consistent with the decline of authoritarian parenting observed in industrialized countries and with the greater prevalence of more permissive parenting in countries characterized by low inequality.
Keywords: Parenting Styles; Altruism; Paternalism; Intergenerational Transmission; Economic Incentives
JEL Codes: D10; J10; O10; O40
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parental preferences (J13) | Parenting styles (J12) |
| Parental altruism (D64) | Investment in children's future success (J13) |
| Parental paternalism (D18) | Disagreement with children's natural preferences (C92) |
| Socioeconomic environment (P36) | Differences in parenting styles (J12) |
| Authoritarian parenting (J12) | Societies with low mobility and high incumbency advantages (J62) |
| Authoritative parenting (J12) | Societies with high return to education and independence (I26) |
| Permissive parenting (J13) | Societies with high returns to independence and low returns to human capital investment (J24) |
| Historical decline of authoritarian parenting (J12) | Rising economic returns to independence (O49) |
| Shift towards authoritative practices (D70) | Increased competition for educational success (I24) |