Families with patience see financial success: Study
Families that are more patient and take more risks are less likely to be envious of others and generally experience financial success. Four out of each five families in the country belong to this group, says a research.
On the flip side, families that are more impatient and not interested in taking risks are more likely to envy others and the members of such families become comparatively less successful.
The study titled, “‘Economic choices by generations and family classes: A large-scale research in a developing country”, was presented at a seminar at the Bangladesh Institute of Development Studies (BIDS) in Dhaka on Wednesday.
The research was jointly conducted by Professor Matthias Sutter of the University of Cologne, Professor Klaus F Zimmermann of the University of Maastricht, and Professor Shyamal Chowdhury of the University of Sydney. It has been selected for publishing in The Journal of Political Economy of the University of Chicago.
The study surveyed 1,991 people in total from 542 families in four districts -- Chandpur, Gopalganj, Netrokona and Sunamganj. Their financial choices, including time, risk, and social choices, were taken into account in the study.
According to the research, economic choice is a crucial factor for individual success. It is important to understand how economic choices are made. Children and families, with help of this understanding, can easily identify the right choices for their economic success and thus head towards long term success.
Researcher Shyamal Chowdhury said parents are deeply engaged in the growth of their children's choices as the way a child will grow up depends largely on parents. In the same way, the children are highly influenced by their siblings and surrounding environment. In other words, the economic choices of children largely depend on the family.
Kazi Iqbal, a senior research fellow of BIDS, came up with a bit different view. He said once East Bengal was lagging behind when Delhi, Mumbai, Madras were going through industrialisation and massive advancement. The situation changed completely among the last two generations as many are entering large businesses nowadays.
“If the children would decide the profession in line with their parents’ choices, then how did this change take place? It is in contrast to the research outcome. This change is in contrast to the research outcome,” he said.
Raising a question on research samples, Mozammel Haque, an economics department teacher of University of Strathclyde in Scotland, said the research does not represent Rangpur and Rajshahi divisions.
“I think it is a major weakness of the research. It would not be fair to generalise the research for all over Bangladesh,” he said.
Moderating the event, Monzur Hossain, research director of BIDS, said there should be a difference between rural and urban areas in determining financial choices. Not only family but also teachers play a significant role in determining this choice.
The study, which examines the economic preferences of parents and children, found that about two-thirds of parents and children are interested in embracing risks in the shorter run. On the other hand, more than half of parents and children are impatient and want instantaneous results, instead of something better after a longer waiting.
There is no noticeable difference between the choices of boys and girls. However, women were found more patient than the men.
Among others, Gonoshasthaya Kendra founder Zafrullah Chowdhury attended the event.