Why do rich mother and father have rich kids? – Marginal REVOLUTION

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From Andreas Fagereng, Magne Mogstad, and Marte Rønning

Summary: We present that household background issues considerably for youngsters’s accumulation of wealth and investor habits as adults, even when eradicating the genetic connection between kids and the mother and father elevating them. The evaluation is made attainable by linking Korean-born kids who have been adopted at infancy by Norwegian mother and father to a inhabitants panel information set with detailed data on wealth and socio-economic traits. The mechanism by which these Korean-Norwegian adoptees have been assigned to adoptive households is understood and successfully random. This mechanism permits us to estimate the causal results from an adoptee being raised in a single sort of household versus one other.

Right here is a (possibly gated) link.  This appears to be one space the place parenting actually issues, specifically monetary attitudes.  Identical to faith and politics, curiously.