Researchers from McGill University in Canada conducted a simple experiment involving 372 children between the ages of 4 and 8.
The researchers, led by Professor Victoria Talwar of McGill's Department of Educational and Counselling Psychology, left each child alone in a room for a minute with a toy behind them on a table, having told the child not to peek during their absence.
While they were out of the room, a hidden video camera filmed what went on.
They found that 67.5 per cent or 251 children out of the 372 who were involved in the experiment peeked at the toy.
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For every 1-month increase in age, children became slightly less likely to peek.
When the children were asked whether or not they had peeked, again 167 children or 66.5 per cent lied - and month-by-month as children aged, they both become more likely to tell lies and more adept at maintaining their lies.
The study found that while younger children were more focused on telling the truth to please the adults, the older children had better internalised standards of behaviour which made them tell the truth because it was the right thing to do.
"The bottom line is that punishment does not promote truth-telling," said Talwar.
"This is useful information for all parents of young children and for the professionals like teachers who work with them and want to encourage young children to be honest," Talwar said.