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The Role of Social Networks and Peer Effects in Education Transmission

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  • Sebastian Bervoets

    ()
    (AMSE - Aix-Marseille School of Economics - Aix-Marseille Univ. - Centre national de la recherche scientifique (CNRS) - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole Centrale Marseille (ECM))

  • Antoni Calvó-Armengol

    (UAB - Universitat Autònoma de Barcelona - Universitat Autónoma de Barcelona)

  • Yves Zenou

    (Université de Stockholm - Université de Stockholm - Université de Stockholm)

Abstract

We propose a dynastic model in which individuals are born in an educated or uneducated environment that they inherit from their parents. We study the role of social networks on the correlation in the parent-child educational status independent of any parent-child interaction. We show that the network reduces the intergenerational correlation, promotes social mobility and increases the average education level in the population. We also show that a planner that encourages social mobility also reduces social welfare, hence facing a trade off between these two objectives. When individuals choose the optimal level of social mobility, those born in an uneducated environment always want to leave their environment while the reverse occurs for individuals born in an educated environment.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00793169.

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Date of creation: Mar 2012
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Handle: RePEc:hal:wpaper:halshs-00793169

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Keywords: Social mobility; strong and weak ties; intergenerational correlation; education;

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