Intergenerational transmission of time preferences: Evidence from rural Thailand

Abstract

This study investigates factors associated with child time preferences using a longitudinal dataset from rural Thailand with rich background information on child, caregiver, parent, and household characteristics. We find that the caregiver discount factor positively correlates with a child's ability to delay gratification, regardless of whether the caregiver is a parent. This correlation is stronger when both parents live at home than when neither of them is present, and when the main caregivers are older. In addition, children's age, literacy ability, and being a firstborn child (versus later-born) are significantly associated with children's time preferences, while other variables, e.g., screen time, are not.