Socioeconomic Status and Inequalities in Children’s IQ and Economic Preferences

This paper explores inequalities in IQ and economic preferences between children from families of high low socioeconomic status (SES). We document that high-SES are more intelligent, patient, altruistic as well less risk seeking. To understand the underlying mechanisms, we propose a framework how SES, parental investments, maternal influence child’s preferences. Our results indicate disparities level investments hold substantial importance. In light importance for behaviors outcomes, our findings offer an explanation social immobility.