The Intergenerational Transfer Effects on Sport Activity

Abstract

The intergenerational transfer effects from parents to their children are strong. We are testing the intergenerational transfer hypothesis using a Finnish data set collected in 2007. The survey allows not only studying intergenerational transfer effect in sport but also in movies at a cinema and classical music concerts participation. Consumers' preferences are modelled using a CES utility function. If sport (movies, classical music) are normal goods, higher incomes result in higher demand but lost income due to time spent in these leisure activities should decrease the demand. It turns out that lost income (Linder's disease) is important. Older persons who are already pensioners do not suffer from Linder's disease are more active sport, movies and classical music consumers than younger (e.g. 55-64 years old). The intergenerational transfer hypothesis is verified. In general if parents have been active sport exercisers their children are also active sport exercisers. Father's influence is significant even when the person is older than 55. Mother's influence in that case is not significant. However, mother's influence is important and significant in the cases of movies at a cinema and classical music even when the person is older than 55.

Is cultural taste in Finland acquired from mother, father or both

“…The adverse effect of rising wages has not been given much attention in the literature but Løyland and Ringstad (2009), using Norwegian data, suggest that Linder's effect is important and cannot be ignored regarding sports. Furthermore, an adverse effect has been shown to be valid for sports, filmgoing and classical music concerts (Suominen 2015). The income-leisure approach proposes that time-consuming sports participation varies positively with incomes and negatively with earnings per hour.…”

“…Intergenerational transfer is more likely to originate from the father than from the mother regarding sports activity among older cohorts (Suominen 2015) but when the child is middle-aged or younger, the influence of both parents is equally important. Regarding filmgoing or classical music concerts, the mother's influence is significant among all age cohorts while the cultural activities engaged in by fathers do not seem to be inherited once a person moves beyond 55 years of age.…”