Paul Schrader was born july 22 1946 in Grand Rapids, Michigan, the son of Joan (née Fisher) and Charles A. Schrader, an executive. Schrader's family attended the Calvinist Christian Reformed Church. His early life was based upon the religion's strict principles and parental education. He did not see a film until, when he was seventeen years old, he was able to sneak away from home. In an interview he stated that The Absent-Minded Professor was the first film he saw. In his own words, he was "very unimpressed" by it, while Wild in the Country, which he saw some time later, had quite some effect on him. Schrader attributes his intellectual rather than emotional approach towards movies and movie-making to his having no adolescent movie memories. Schrader is of Dutch descent. Schrader earned his B.A. from Calvin College, with a minor in theology. He then earned an M.A. in film studies at the UCLA Film School upon the recommendation of Pauline Kael. With Kael as his mentor, he became a film critic, writing for the Los Angeles Free Press and later for Cinema magazine. His book Transcendental Style in Film: Ozu, Bresson, Dreyer, which examines the similarities between Robert Bresson, Yasujirō Ozu, and Carl Theodor Dreyer, was published in 1972. The endings of his films American Gigolo and Light Sleeper bear obvious resemblance to that of Bresson's 1959 film Pickpocket. His essay Notes on Film Noir from the same year has become a much-cited source in literature on film. The September–October 2006 issue of Film Comment magazine published his essay Canon Fodder, which attempted to establish criteria for judging film masterworks. Other film-makers who made a lasting impression on Schrader are John Ford, Jean Renoir, Roberto Rossellini, Alfred Hitchcock, and Sam Peckinpah. Renoir's The Rules of the Game he called the "quintessential movie" which represents "all of the cinema".

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