Determinants of preferences for honesty
Reporting private information is a key part of economic decision making. A recent literature has found that many people have a preference for honest reporting, contrary to usual economic assumptions. In this paper, we investigate what determines these preferences. We experimentally measure preferences for honesty in a sample of children. We first document several correlations between a child's reporting behaviour and parents'
characteristics. We then provide causal evidence on the effect of the social environment by randomly enrolling children in a year-long mentoring programme. We find that, about four years after the end of the mentoring programme, mentored children are significantly more honest.