The Intergenerational Transfer Effects on Sport Activity

Abstract

The intergenerational transfer effects from parents to their children are strong. If father or mother have been or are active sport exercisers, the probability that children are also active sport exercisers is rather large. 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). In Finland women are more active in any leisure activity.

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.