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Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences

Poor outcomes arising from natural and social circumstances to which individuals are born, over which they have no control, are widely seen as normatively objectionable and potential obstacles for economic growth. Understanding the persistence and effects of circumstances of birth is crucial to abat...

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Main Author: Njozela,Lindokuhle
Other Authors: Burns, Justine
Format: Thesis
Language:English
Published: School of Economics 2023
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access_status_str Open Access
author Njozela,Lindokuhle
author2 Burns, Justine
author_browse Burns, Justine
Njozela,Lindokuhle
author_facet Burns, Justine
Njozela,Lindokuhle
author_sort Njozela,Lindokuhle
collection Thesis
description Poor outcomes arising from natural and social circumstances to which individuals are born, over which they have no control, are widely seen as normatively objectionable and potential obstacles for economic growth. Understanding the persistence and effects of circumstances of birth is crucial to abating these adverse effects, particularly in the context of rising global inequality. The existing literature is limited in two respects. Firstly, it lacks a comprehensive description of the persistence of intergenerationally transmitted preferences that contribute to the deterministic nature of accidents of birth. Secondly, the effects of dyadic and multigenerational (im)mobility on voluntary pro-social behaviour to mitigate the consequences of birth are rarely studied. This thesis fills these gaps in the South African context – a country with high and strongly racialised (a “natural” circumstance of birth) inequality, and comparatively low intergenerational mobility. Using a nationally representative dataset, significant correlations are observed in interracial trust attitudes between mothers and children. However, this effect is substantially smaller and largely insignificant for non-coresident mothers and children. Disaggregating the trust attitudes shows strong intergenerational correlations amongst individuals who completely mistrust their race and other race groups, irrespective of mother-child co-residence. In trust and public goods games with identical treatment designs, inherited socioeconomic status is assigned in two treatments based on real-world self-reported parental or grandparental socio-economic status. The results show weak overall effects on trust orientated behaviour in the trust game with socio-economic status inherited from parents or grandparents. However, there is substantial heterogeneity in behaviour with inherited social status in the trust game with trust and trustworthiness tending to favour individuals who inherit a low socio-economic status. Introducing inherited advantages for relatively higher endowment attainment in a public goods game shows increased contributions with parentally inherited status, but not from grandparents. Heterogeneous treatment effects show weak evidence of inequality aversion yet substantial altruistic preferences with parentally inherited advantages.
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license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2023
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spelling oai:open.uct.ac.za:11427/37359 Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences Njozela,Lindokuhle Burns, Justine economics Poor outcomes arising from natural and social circumstances to which individuals are born, over which they have no control, are widely seen as normatively objectionable and potential obstacles for economic growth. Understanding the persistence and effects of circumstances of birth is crucial to abating these adverse effects, particularly in the context of rising global inequality. The existing literature is limited in two respects. Firstly, it lacks a comprehensive description of the persistence of intergenerationally transmitted preferences that contribute to the deterministic nature of accidents of birth. Secondly, the effects of dyadic and multigenerational (im)mobility on voluntary pro-social behaviour to mitigate the consequences of birth are rarely studied. This thesis fills these gaps in the South African context – a country with high and strongly racialised (a “natural” circumstance of birth) inequality, and comparatively low intergenerational mobility. Using a nationally representative dataset, significant correlations are observed in interracial trust attitudes between mothers and children. However, this effect is substantially smaller and largely insignificant for non-coresident mothers and children. Disaggregating the trust attitudes shows strong intergenerational correlations amongst individuals who completely mistrust their race and other race groups, irrespective of mother-child co-residence. In trust and public goods games with identical treatment designs, inherited socioeconomic status is assigned in two treatments based on real-world self-reported parental or grandparental socio-economic status. The results show weak overall effects on trust orientated behaviour in the trust game with socio-economic status inherited from parents or grandparents. However, there is substantial heterogeneity in behaviour with inherited social status in the trust game with trust and trustworthiness tending to favour individuals who inherit a low socio-economic status. Introducing inherited advantages for relatively higher endowment attainment in a public goods game shows increased contributions with parentally inherited status, but not from grandparents. Heterogeneous treatment effects show weak evidence of inequality aversion yet substantial altruistic preferences with parentally inherited advantages. 2023-03-10T09:43:33Z 2023-03-10T09:43:33Z 2022 2023-03-10T09:42:26Z Doctoral Thesis Doctoral PhD http://hdl.handle.net/11427/37359 eng application/pdf School of Economics Faculty of Commerce
spellingShingle economics
Njozela,Lindokuhle
Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
thesis_degree_str Doctoral
title Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
title_full Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
title_fullStr Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
title_full_unstemmed Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
title_short Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
title_sort standing on the shoulders of birth intergenerational mobility inequality and pro social preferences
topic economics
url http://hdl.handle.net/11427/37359
work_keys_str_mv AT njozelalindokuhle standingontheshouldersofbirthintergenerationalmobilityinequalityandprosocialpreferences