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Friendship Relations in the School Class and Adult Economic Attainment

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  • 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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References

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  1. John F. Helliwell & Robert D. Putnam, 1999. "Education and Social Capital," NBER Working Papers 7121, National Bureau of Economic Research, Inc.
  2. Carneiro, Pedro & Heckman, James J., 2003. "Human Capital Policy," IZA Discussion Papers 821, Institute for the Study of Labor (IZA).
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  7. Alesina, Alberto & La Ferrara, Eliana, 2002. "Who trusts others?," Journal of Public Economics, Elsevier, vol. 85(2), pages 207-234, August.
  8. 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.
  9. 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. 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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  14. 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.
  15. Samuel Bowles & Herbert Gintis, 2001. "Social Capital and Community Governance," Working Papers 01-01-003, Santa Fe Institute.
  16. 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.).
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Cited by:
  1. 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).
  2. Julio Elías & Víctor Elías & Lucas Ronconi, 2007. "Discrimination and Social Networks: Popularity among High School Students in Argentina," IDB Publications 43778, Inter-American Development Bank.
  3. Hübler, Olaf, 2006. "The Nonlinear Link between Height and Wages: An Empirical Investigation," IZA Discussion Papers 2394, Institute for the Study of Labor (IZA).
  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. 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. 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.
  7. 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.

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