Sibling correlation in risk attitudes: evidence from Burkina Faso

Abstract

This study uses sibling correlation to provide novel descriptive evidence of parental and household characteristics on three different risk domains collected in a nationally representative survey from Burkina Faso. The sibling correlations are between 0.51 and 0.83. The correlations are higher in the general risk domain compared to risk taking in financial matters and traffic. Moreover, the sibling correlation is higher for sisters than brothers. We also explore which factors might drive these correlations; parents’ risk attitudes appears to play a role in explaining these correlations, whereas socioeconomic outcomes, family structure, parental health and residential zone seems to have only a limited contribution. We also find that gender seems to be important in explaining the variation in sibling correlations. Mother’s appear to have a stronger contribution on daughters than their sons correlation, whereas father’s help to explain their sons correlation.