Abstract
Evidence suggests that maternal and offspring smoking behaviour is correlated. Little is known about the mechanisms through which this intergenerational transfer occurs. This paper explores the role of time preferences. Although time preference is likely to be heritable and correlated with health investments, its role in the intergenerational transmission of smoking has not been explored previously. This is the first paper to empirically test this. Data (2002, 2003, 2004, 2006 and 2008) from the Household, Income and Labour Dynamics in Australia are used. Estimates by using a pooled probit model show that there is not a direct effect of maternal time preference, measured in terms of financial planning horizon, on the likelihood that their offspring is a smoker. However, there is an indirect effect of maternal time preference. Sons of mothers that are smokers and have a shorter planning horizon are 6% more likely to smoke than if their mother had a longer planning horizon, and daughters of mothers that smoke with a shorter planning horizon are 7% more likely to smoke themselves than if their mother had a longer planning horizon.
Highlights
The correlation between parents’ and their offspring’s smoking behaviour is well established
This paper explores whether the role of time preference in the intergenerational transmission of smoking differs across gender lines
This paper investigated the role of time preference in the transmission of smoking from mothers to their offspring
Summary
The correlation between parents’ and their offspring’s smoking behaviour is well established (for example Wickrama et al, 1999; Shenassa et al, 2003). To inform interventions and policy aimed at reducing smoking, it is crucial to gain a better understanding of the mechanisms contributing to persistence across generations Both shared genetics and shared environment between parents, and their offspring are likely to play a role. Time preference is likely to be heritable and correlated with health investments, its role in the intergenerational transmission of smoking has not been explored previously. This is the first paper to empirically test this. This paper explores whether the role of time preference in the intergenerational transmission of smoking differs across gender lines. There are 3167 young adults and 1901 mothers in the sample.
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