Wednesday, November 29, 2006

Parents who are willing to take risks tend on average to have children who are more prepared to take risks

ScienceDaily:

Whether you go through life as a daredevil or tend to avoid taking risks depends a lot on your own pedigree. This is shown by a current study by the Institute for the Study of Labor (Institut zur Zukunft der Arbeit, IZA) and the University of Bonn. According to this study, parents who are willing to take risks tend on average to have children who are more prepared to take risks. Moreover, the willingness to trust one's fellow humans is apparently also inherited. The results offer a new basis for explaining why children who have successful parents often go far in life as well. Every economic decision involves risks; every business is in part a matter of trust. Inherited character traits could therefore be a decisive factor for economic success, the researchers speculate.

The scientists used data from the so called "socio-economic" panel from 2003 and 2004. For this data 3,600 parents were interviewed together with their children. On average the children were 25 years old; more than 40 per cent were no longer living with their parents.

Every member of the family was supposed to estimate their willingness to take risks on a scale of 0 (= not willing at all to take risks) to 10 (= very willing to take risks). Candidates were also supposed to differentiate between the following categories: driving a car, financial matters, sport, leisure, career and health. "With regard to willingness to take risks children are astonishingly similar to their parents," is how the Bonn economist Professor Armin Falk sums up the results. "This is not only true for the overall estimate, but also for the different categories. There are people, for example, for whom no mogul piste is too steep when skiing, but who invest their money in secure government bonds. An identical risk profile can often be found with their children."

Success really does like in your genes

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