TY - UNPB

T1 - The effect of the social environment during childhood on preferences in adulthood

AU - Abeler, Johannes

AU - Fosgaard, Toke Reinholt

AU - Hansen, Lars Garn

PY - 2023

Y1 - 2023

N2 - Preferences are key for shaping decision-making, yet it remains an open question where preferences originate from. We investigate the causal effect of the childhood social environment on adults’ preferences. We utilize a natural experiment in Denmark, which randomized refugees to different neighbourhoods in the 1990s. We experimentally measure risk, time, and social preferences of adult refugees who were children at the time of arrival in Denmark. Using rich administrative register data on the entire Danish population we can measure a very broad range of aspects of the childhood social environment. We find that the randomly allocated childhood environment significantly affects adults’ preferences, in particular, patience.

AB - Preferences are key for shaping decision-making, yet it remains an open question where preferences originate from. We investigate the causal effect of the childhood social environment on adults’ preferences. We utilize a natural experiment in Denmark, which randomized refugees to different neighbourhoods in the 1990s. We experimentally measure risk, time, and social preferences of adult refugees who were children at the time of arrival in Denmark. Using rich administrative register data on the entire Danish population we can measure a very broad range of aspects of the childhood social environment. We find that the randomly allocated childhood environment significantly affects adults’ preferences, in particular, patience.

M3 - Working paper

T3 - IFRO Working Paper

BT - The effect of the social environment during childhood on preferences in adulthood

PB - Department of Food and Resource Economics, University of Copenhagen

ER -