Intergenerational transmission of preferences for redistribution

Abstract

We explore whether preferences for redistributive policies are transmitted from parents to children and study the empirical relevance of three modulators suggested by theoretical models: family income mobility, personality traits of parents, and the abilities of their children. We draw on a novel and rich dataset, the Longitudinal Study of Well-being in Uruguay, which contains information on parents' preferences for redistribution in the years 2011/12 and 2015/16 and their children's preferences in the year 2015/16. Firstly, we find that, on average, the intergenerational persistence of redistributive preferences is relatively high. Secondly, there is heterogeneity in the intergenerational transmission process associated with parents' learning. Finally, the intergenerational transmission of preferences is more relevant when intergenerational mobility is lower, parents have greater self-control, and children present higher abilities. JEL Code: D31, D64, H23