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Stratification, social networks in the labour market, and intergenerational mobility

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  • Anderberg, Dan
  • Andersson, Fredrik

Abstract

This paper uses a model of human capital accumulation, labour market distortions, word-of-mouth communication, and community formation to analyse socio-economic stratification, educational choices and intergenerational social mobility. Workers obtain information about job opportunities from individuals in their local environment, implying that the social environment partly determines the expected returns to education. Stratified equilibria, when they exist, are characterised by low intergenerational social mobility and inefficient use of talent. The equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups. -- Der Beitrag verwendet ein Model mit Humankapitalakkumulation, Verzerrungen auf dem Arbeitsmarkt, Mund-zu-Mund-Kommunikation und Nachbarschaftsbildung, um sozioökonomische Stratifikation, Bildungsentscheidungen und intergenerationale soziale Mobilität zu analysieren. Arbeitnehmer erhalten Informationen über freie Arbeitsplätze von Individuen in ihrer Umgebung. Dies impliziert, dass der erwartete Ertrag der Bildungsentscheidungen von der sozialen Umgebung abhängig ist. Stratifizierte Gleichgewichte, falls sie existieren, zeichnen sich durch geringe intergenerationale Mobilität und eine ineffizient niedrige Ausschöpfung von Begabungen aus. Die Gleichgewichtsreaktionen auf erhöhte Bildungsanreize können in stratifizierten Gleichgewichten sehr asymmetrisch für verschiedene sozioökonomische Gruppen ausfallen.

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Bibliographic Info

Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Processes and Governance with number SP II 2003-20.

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Date of creation: 2003
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Handle: RePEc:zbw:wzbmpg:spii200320

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  1. Carneiro, Pedro & Heckman, James J., 2002. "The Evidence on Credit Constraints in Post-Secondary Schooling," IZA Discussion Papers 518, Institute for the Study of Labor (IZA).
  2. Susan E. Mayer & Leonard M. Lopoo, 2004. "Has the Intergenerational Transmission of Economic Status Changed?," Working Papers, Harris School of Public Policy Studies, University of Chicago 0414, Harris School of Public Policy Studies, University of Chicago.
  3. Dearden, Lorraine & Machin, Stephen & Reed, Howard, 1997. "Intergenerational Mobility in Britain," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(440), pages 47-66, January.
  4. repec:nsr:niesrd:69 is not listed on IDEAS
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Cited by:
  1. Yannis M. Ioannides & Linda Datcher Loury, 2004. "Job Information Networks, Neighborhood Effects, and Inequality," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1056-1093, December.
  2. Zuluaga, Blanca, 2013. "Quality of social networks and educational investment decisions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, Elsevier, vol. 43(C), pages 72-82.
  3. Boudreau, James W., 2010. "Stratification and growth in agent-based matching markets," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 75(2), pages 168-179, August.
  4. Wolfgang Eggert & Tim Krieger & Volker Meier, 2007. "Education, Unemployment and Migration," CESifo Working Paper Series 2119, CESifo Group Munich.
  5. Piacentini, Mario, 2008. "Migration Enclaves, Schooling Choices and Social Mobility," MPRA Paper 8376, University Library of Munich, Germany.

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