Parenting style has a huge impact on the economy and society

Parenting style matters, since it defines the care a child receives. But it also has a powerful influence on culture and economy, since parents react to certain situations differently. It means that parenting styles can exacerbate social inequalities, affect how neighbourhoods function and shape the future prospects of children.

“The kids of today will create the society of tomorrow. Yet society today is shaping the way parents behave with their kids. This will influence how society functions in the future, since these kids grow up, have children and they are influenced by their parents,” explains Giuseppe Sorrenti, Assistant Professor in Public Economics at HEC Lausanne.

The factors shaping parenting styles

Certain styles are now in vogue such as ‘helicopter parenting’ where children are micromanaged, this authoritarian style can be overattentive and overly fearful for the child, prohibiting autonomy, as opposed to more permissive parenting where fewer demands are made.

Sorrenti and colleagues studied how different neighbourhoods in the U.S. and different peer groups influence the adoption of these parenting styles. Their model found that parents respond to their children’s social environment in a bid to protect or enhance their children’s opportunities.¹

“If a neighbourhood is considered risky parents are more authoritarian and they will interfere more with their child’s choice of friends, since they’re concerned about their peer group. If it’s less risky they take a more laissez faire approach. Yet being an authoritarian parent limits a child’s exposure to certain peers, this in turn perpetuates social inequality,” details Sorrenti.

How parenting style and government policies impact each other

Authoritarian parenting has implications for government policies. Those regulations that reduce economic and social segregation, as well as foster trust, can weaken the self-reinforcing link between parental choices and persistent inequality.

However, there are limits. Research shows that when a single family moves to a better neighbourhood, the child enjoys large gains, because of better peers.¹ However, larger-scale policies such as building social housing in affluent areas triggers a reaction among resident parents limiting its effectiveness.

“When a large number of children are moved from disadvantaged neighbourhoods into affluent ones, local parents start to actively discourage their children from mixing with newcomers and they become more authoritarian. The most interesting aspect of this research is that we can simulate policies that have yet to be implemented,” states Sorrenti.

Parents at the core of interconnected social dynamics

Culture and parenting style are also transmitted down the generations reinforcing cultural values such as work ethic, patience and how religious children are. This also affects economic outcomes and social mobility, according to another research paper.²

“In societies where the level of trust of peers is high parents tend to be more permissive and less authoritarian, because they trust a greater number of the families that live close by. Where there is less trust, parents are more authoritarian,” says the Assistant Professor.

He adds: “Parenting styles, cultural transmission, peer interactions, and residential choices are all interlinked in dynamic feedback loops. Our research shows that any policies that plan to reduce inequality or improve child outcomes need to put parents at the core.”

Sorrenti is now trying to achieve a fuller picture of parenting styles, for instance by accounting for social media use. “The aim of new research is to understand how social media is changing the way parents behave with their children and interact with their neighbourhood,” he concludes.

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