Abstract:We examine social preferences of Swedish and Austrian children and adolescents using the experimental design of Charness and Rabin (2002). We find that difference aversion decreases while social-welfare preferences increase with age.

We study how the distribution of other-regarding preferences develops with age. Based on a set of allocation choices, we classify each of 717 subjects, aged 8 to 17 years, as either egalitarian, altruistic, or spiteful. We find a strong decrease in spitefulness with increasing age. Egalitarianism becomes less frequent, and altruism much more prominent, with age. Females are more frequently classified as egalitarian than males, and less often as altruistic. By varying the allocation recipient as either an in-group or an out-group member, we also study how parochialism develops with age. Parochialism emerges significantly in the teenage years.

The Effect of Language on Economic Behavior: Experimental Evidence from Children's Intertemporal Choices * According to Chen's (2013) linguistic-savings hypothesis, languages which grammatically separate the future and the present (like English or Italian) induce less future-oriented behavior than languages in which speakers can refer to the future by using present tense (like German). We complement Chen's approach with experimentally elicited time preference data from a bilingual city in Northern Italy. We find that German-speaking primary school children are about 46% more likely than Italian-speaking children to delay gratification in an intertemporal choice experiment. The difference remains significant in several robustness checks and when controlling for a broad range of factors, including risk attitudes, IQ or family background.

Social Preferences in Childhood and Adolescence:A Large-Scale Experiment *Social preferences have been shown to be an important determinant of economic decision making for many adults. We present a large-scale experiment with 883 children and adolescents, aged eight to seventeen years. Participants make decisions in eight simple, one-shot allocation tasks, allowing us to study the distribution of social preference types across age and across gender. Our results show that when children and teenagers grow older, inequality aversion becomes a gradually less prominent motivating force of allocation decisions. At the same time, efficiency concerns increase in importance for boys, and maximin-preferences turn more important in shaping decisions of girls.

Gender Differences in Competition Emerge Early in Life *We study gender differences in the willingness to compete in a large-scale experiment with 1,035 children and teenagers, aged three to eighteen years. Using an easy math task for children older than eight years and a running task for the younger ones we find that boys are much more likely to enter a tournament than girls across the whole age spectrum considered here. This gender gap is observed already with three-year olds, indicating that gender differences in competitiveness emerge very early in life. The gap is robust to controlling for gender differences in risk attitudes and overconfidence.