Working Paper: NBER ID: w29125
Authors: Daron Acemoglu
Abstract: This paper presents an analysis of what types of values, especially in regards to obedience vs. independence, families impart to their children and how these values interact with social mobility. In the model, obedience is a useful characteristic for employers, especially when wages are low, because independent workers require more incentives (when wages are high, these incentives are automatic). Hence, in low-wage environments, low-income families will impart values of obedience to their children to prevent disadvantaging them in the labor market. To the extent that independence is useful for entrepreneurial activities, this then depresses their social mobility. High-income and privileged parents, on the other hand, always impart values of independence, since they expect that their children can enter into higher-income entrepreneurial (or managerial) activities thanks to their family resources and privileges. I also discuss how political activity can be hampered when labor market incentives encourage greater obedience and how this can generate multiple steady states with different patterns of social hierarchy and mobility.
Keywords: Labor Market; Social Mobility; Cultural Values; Obedience; Independence
JEL Codes: A13; J31; J62; P16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Labor market conditions (low wages) (J29) | Parenting styles (obedience-focused) (J12) |
| Parenting styles (obedience-focused) (J12) | Children's future economic behavior (J13) |
| Labor market conditions (low wages) (J29) | Social mobility (J62) |
| Parenting styles (obedience-focused) (J12) | Political engagement (D72) |
| Labor market conditions (low wages) (J29) | Political engagement (D72) |