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Friendship Relations in the School Class and Adult Economic Attainment

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Author Info

  • Galeotti, Andrea

    ()
    (California Institute of Technology)

  • Mueller, Gerrit

    ()
    (ZEW Mannheim)

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, personality traits 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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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1682.

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Length: 47 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:iza:izadps:dp1682

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Keywords: friendship ties; social capital; earnings;

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  1. Michael T. Maloney & Robert E. McCormick, 1993. "An Examination of the Role That Intercollegiate Athletic Participation Plays in Academic Achievement: Athletes' Feats in the Classroom," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 555-570.
  2. Gerrit Mueller & 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.
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  5. James Heckman & Pedro Carneiro, 2003. "Human Capital Policy," NBER Working Papers 9495, National Bureau of Economic Research, Inc.
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  7. 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.
  8. Andrew Postlewaite & Dan Silverman, 2005. "Social isolation and inequality," Journal of Economic Inequality, Springer, vol. 3(3), pages 243-262, December.
  9. Sean Durkin, . "Measuring Social Capital and Its Economic Impact," University of Chicago - Population Research Center 2000-04, Chicago - Population Research Center.
  10. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
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  12. Krueger, Alan B & Whitmore, Diane M, 2001. "The Effect of Attending a Small Class in the Early Grades on College-Test Taking and Middle School Test Results: Evidence from Project STAR," Economic Journal, Royal Economic Society, vol. 111(468), pages 1-28, January.
  13. 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.
  14. 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.
  15. 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.
  16. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  17. Yona Rubinstein & James J. Heckman, 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.
  18. 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.
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Citations

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Cited by:
  1. 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.
  2. 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.
  3. Calvó-Armengol, Antoni & Patacchini, Eleonora & Zenou, Yves, 2008. "Peer Effects and Social Networks in Education," IZA Discussion Papers 3859, Institute for the Study of Labor (IZA).
  4. Hübler, Olaf, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute for the Study of Labor (IZA).
  5. 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.
  6. 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.
  7. 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).

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