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Mums and their sons, dads and their daughters :\ud panel data evidence of interdependent marginal\ud utilities across 14 EU countries

By José Alberto Molina, Maria Navarro and Ian Walker


We study how fathers and mothers income satisfaction correlates with the income\ud satisfaction of their sons and daughters, as well as with other economic and sociodemographic\ud variables. We estimate these correlations using data on parents and children in\ud households surveyed in the eight waves of the European Community Household Panel-\ud ECHP (1994-2001) for 14 EU countries. To assess the robustness of these correlations, we\ud use siblings in the Panel and we investigate the sensitivity of the estimates with the inclusion\ud of other control variables. We also adopt a multi-level random effects ordered probit\ud specification, that uses step-parents in the data, to allow us to distinguish nature effects from\ud nurture effects. Our main results show evidence of strong altruism effects, but these\ud estimated effects differ across countries, differ between mothers and fathers, and differ\ud between sons and daughters

Topics: HC
Publisher: Forschungsinstitut zur Zukunft der Arbeit
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