The effect of paternalistic decisions on children’s self-esteem and long-term decision-making processes: Evidence from rural Thailand"

With Ramon Cobo-Reyes, Matthias Sutter, and Weerachart T. Kilenthong

Abstract: We study how parental delegation affects children’s decision-making. In a field experiment with parent-child pairs in rural Thailand, parents are randomly assigned to retain decision rights, delegate decisions to their child, or have no authority. Across domains including time, risk, competition, and social preferences, we find that delegation affects children’s choices in a domain-specific way. Delegated children display greater patience in intertemporal choices and are more likely to choose safe options in risky environments, while competitive and social preferences remain largely unaffected. Delegation also reduces the distance between children’s choices and parents’ preferences, despite children not observing those preferences. The results highlight how autonomy and parental involvement interact in shaping children’s economic decision-making.

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