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

Author

Listed:
  • 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.

Suggested Citation

  • Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "Like Father, Like Son: Labor Market Networks and Social Mobility," Working Papers 179, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:179
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    References listed on IDEAS

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    More about this item

    Keywords

    Social Mobility; Networks; labor markets; human capital;
    All these keywords.

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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