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

dc.contributor.advisorBurns, Justine
dc.contributor.authorNjozela,Lindokuhle
dc.date.accessioned2023-03-10T09:43:33Z
dc.date.available2023-03-10T09:43:33Z
dc.date.issued2022
dc.date.updated2023-03-10T09:42:26Z
dc.description.abstractPoor 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.
dc.identifier.apacitation(2022). <i>Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences</i>. (). ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/37359en_ZA
dc.identifier.chicagocitation. <i>"Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences."</i> ., ,Faculty of Commerce ,School of Economics, 2022. http://hdl.handle.net/11427/37359en_ZA
dc.identifier.citation2022. Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences. . ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/37359en_ZA
dc.identifier.risTY - Doctoral Thesis AU - Njozela,Lindokuhle AB - 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. DA - 2022_ DB - OpenUCT DP - University of Cape Town KW - economics LK - https://open.uct.ac.za PY - 2022 T1 - Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences TI - Standing on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences UR - http://hdl.handle.net/11427/37359 ER -en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/37359
dc.identifier.vancouvercitationStanding on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences. []. ,Faculty of Commerce ,School of Economics, 2022 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/37359en_ZA
dc.language.rfc3066eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.subjecteconomics
dc.titleStanding on the shoulders of birth intergenerational mobility, inequality, and pro-social preferences
dc.typeDoctoral Thesis
dc.type.qualificationlevelDoctoral
dc.type.qualificationlevelPhD
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