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Friendship Relations in the School Class and Adult Economic Attainment

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  • Andrea Galeotti

    ()
    (California Institute of Technology, USA)

  • Gerrit M�ller

    ()
    (Erasmus Universiteit Rotterdam)

Abstract

We analyze the impact of adolescents' friendship relations in their final-year class of highschool on subsequent labor market success. Based on a typology of network positions we locateeach 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 groupof classmates and proxy for their interpersonal behavior and social competencies. We offerempirical evidence that differential social standing in adolescence predicts large and persistent earnings disparities over the entire life course. The estimated wage premia and penaltiesdo 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 orfriends' 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, wecontribute an application of egocentered network methods within conventional labor economicsurvey research.

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Bibliographic 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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Keywords: friendship ties; social capital; earnings;

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  9. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
  10. Andrew Postlewaite & Dan Silverman, 2004. "Social Isolation and Inequality," PIER Working Paper Archive 05-001, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2004.
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  12. Alan Krueger & Diane Whitmore, 1999. "The Effect of Attending a Small Class in the Early Grades on College-Test Taking and Middle School Test Results: Evidence from Project STAR," Working Papers 806, Princeton University, Department of Economics, Industrial Relations Section..
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Cited by:
  1. Antoni Calvo-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.
  2. Hübler, Olaf, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute for the Study of Labor (IZA).
  3. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discriminación y redes sociales: Popularidad entre los estudiantes de bachillerato en Argentina," Research Department Publications 3239, Inter-American Development Bank, Research Department.
  4. Pekkarinen, Tuomas, 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).
  5. Babcock, Phillip, 2008. "From Ties to Gains? Evidence on Connectedness and Human Capital Acquisition," University of California at Santa Barbara, Economics Working Paper Series qt6fw1m0x0, Department of Economics, UC Santa Barbara.
  6. Hübler, Olaf, 2009. "The nonlinear link between height and wages in Germany, 1985-2004," Economics & Human Biology, Elsevier, vol. 7(2), pages 191-199, July.
  7. Víctor Elías & Lucas Ronconi & Julio Elías, 2007. "Discrimination and Social Networks: Popularity among High School Students in Argentina," Research Department Publications 3238, Inter-American Development Bank, Research Department.

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