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Like Father, Like Son: Labor Market Networks and Social Mobility

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  • Antoni Calvó-Armengol
  • Matthew O. Jackson

Abstract

We build a model where investments in human capital depend on the state of an individual's social network. We show that correlation patterns between parents' and children's human capital investment and income depend on the structure of their social network. Heavier reliance on the social network increases the correlation of human capital investments and income across generations and decreases the efficiency of their investment decisions.

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File URL: http://research.barcelonagse.eu/tmp/working_papers/179.pdf
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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 179.

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Date of creation: May 2004
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Handle: RePEc:bge:wpaper:179

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Related research

Keywords: Social Mobility; Networks; Labor Markets; Human Capital;

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  1. Bjorklund, Anders & Jantti, Markus, 1997. "Intergenerational Income Mobility in Sweden Compared to the United States," American Economic Review, American Economic Association, vol. 87(5), pages 1009-18, December.
  2. Anders Björklund & Markus Jäntti, 2000. "Intergenerational mobility of socio-economic status in comparative perspective," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 3-32.
  3. Datcher, Linda P, 1982. "Effects of Community and Family Background on Achievement," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 32-41, February.
  4. Amitabh Chandra, 2000. "Labor-Market Dropouts and the Racial Wage Gap: 1940-1990," American Economic Review, American Economic Association, vol. 90(2), pages 333-338, May.
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