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Friendship Relations in the School Class and Adult Economic Attainment

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Author Info
Andrea Galeotti () (California Institute of Technology, USA)
Gerrit Müller () (Erasmus Universiteit Rotterdam)

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Abstract

We analyze the impact of adolescents' friendship relations in their final-year class of high school on subsequent labor market success. Based on a typology of network positions we locate each student within the social system of the school class as either: an isolate, a sycophant, a broker or a receiver. These positions identify individuals' social standing within the group of classmates and proxy for their interpersonal behavior and social competencies. We offer empirical evidence that differential social standing in adolescence predicts large and persistent earnings disparities over the entire life course. The estimated wage premia and penalties do not appear to be substantially confounded by measures of family and school resources, and materialize largely independent of differences in cognitive abilities, grade rank in class or friends' characteristics. A moderate share of the earnings inequalities is mediated by differential post-secondary human and social capital investment. From a conceptual point of view, we contribute an application of egocentered network methods within conventional labor economic survey research.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 05-032/3.

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Date of creation: 23 Mar 2005
Date of revision: 08 Aug 2005
Handle: RePEc:dgr:uvatin:20050032

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Web page: http://www.tinbergen.nl/

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Related research
Keywords: friendship ties; social capital; earnings;

Find related papers by JEL classification:
A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Andrew Postlewaite & Dan Silverman, 2004. "Social Isolation and Inequality," PIER Working Paper Archive 04-017, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania. [Downloadable!]
    Other versions:
  3. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," NBER Working Papers 10522, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Samuel Bowles & Herbert Gintis & Melissa Osborne, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December. [Downloadable!] (restricted)
  5. Alan Krueger & Diane Whitmore, 2000. "The Effect of Attending a Small Class in the Early Grades on College-Test Taking and Middle School Test Results: Evidence from Project STAR," NBER Working Papers 7656, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. David Neumark & Sanders D. Korenman, 1988. "Does marriage really make men more productive?," Finance and Economics Discussion Series 29, Board of Governors of the Federal Reserve System (U.S.).
  7. Montgomery, James D, 1991. "Social Networks and Labor-Market Outcomes: Toward an Economic Analysis," American Economic Review, American Economic Association, vol. 81(5), pages 1407-18, December.
  8. Sean Durkin, . "Measuring Social Capital and Its Economic Impact," University of Chicago - Population Research Center 2000-04, Chicago - Population Research Center. [Downloadable!]
  9. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August. [Downloadable!] (restricted)
    Other versions:
  10. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  11. Gerrit Müller & Erik Plug, 2004. "Estimating the Effect of Personality on Male-Female Earnings," Tinbergen Institute Discussion Papers 04-087/3, Tinbergen Institute, revised 31 Aug 2005. [Downloadable!]
  12. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August. [Downloadable!] (restricted)
  13. Samuel Bowles & Herbert Gintis, 2002. "Social Capital and Community Governance," Economic Journal, Royal Economic Society, vol. 112(483), pages 419-436, November. [Downloadable!] (restricted)
    Other versions:
  14. John M. Barron & Bradley T. Ewing & Glen R. Waddell, 2000. "The Effects Of High School Athletic Participation On Education And Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 409-421, August. [Downloadable!] (restricted)
  15. Mueller, Gerrit & Plug, Erik, 2004. "Estimating the Effect of Personality on Male-Female Earnings," IZA Discussion Papers 1254, Institute for the Study of Labor (IZA). [Downloadable!]
  16. Edward L. Glaeser & David Laibson & Bruce Sacerdote, 2002. "An Economic Approach to Social Capital," Economic Journal, Royal Economic Society, vol. 112(483), pages 437-458, November. [Downloadable!] (restricted)
  17. James J. Heckman & Yona Rubinstein, 2001. "The Importance of Noncognitive Skills: Lessons from the GED Testing Program," American Economic Review, American Economic Association, vol. 91(2), pages 145-149, May. [Downloadable!] (restricted)
  18. George A. Akerlof & Rachel E. Kranton, 2002. "Identity and Schooling: Some Lessons for the Economics of Education," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1167-1201, December.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tuomas Pekkarinen, 2005. "Gender Differences in Educational Attainment: Evidence on the Role of the Tracking Age from a Finnish Quasi-Experiment," IZA Discussion Papers 1897, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Antoni Calvó-Armengol & Eleonora Patacchini & Yves Zenou, 2008. "Peer Effects and Social Networks in Education," CReAM Discussion Paper Series 0814, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London. [Downloadable!]
    Other versions:
  3. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discriminación y redes sociales: Popularidad entre los estudiantes de bachillerato en Argentina," RES Working Papers 3239, Inter-American Development Bank, Research Department. [Downloadable!]
  4. Olaf Hübler, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discrimination and Social Networks: Popularity among High School Students in Argentina," RES Working Papers 3238, Inter-American Development Bank, Research Department. [Downloadable!]
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