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Which club should I attend, Dad?: Targeted socialization and production

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  • Facundo Albornoz
  • Antonio Cabrales
  • Esther Hauk

Abstract

We study a model that integrates productive and socialization efforts with network choice and parental investments. We characterize the unique symmetric equilibrium of this game. We first show that individuals underinvest in productive and social effort, but that solving only the investment problem can exacerbate the misallocations due to network choice, to the point that it may generate an even lower social welfare if one of the networks is sufficiently disadvantaged. We also study the interaction of parental investment with network choice. We relate these equilibrium results with characteristics that we find in the data on economic co-authorship and field transmission between advisors and advisees.

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  • Facundo Albornoz & Antonio Cabrales & Esther Hauk, 2014. "Which club should I attend, Dad?: Targeted socialization and production," Working Papers 2014-20, FEDEA.
    • Handle: RePEc:fda:fdaddt:2014-20
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    Cited by:

    1. Daniel Albalate & Germá Bel, 2015. "La experiencia internacional en alta velocidad ferroviaria," Working Papers 2015-02, FEDEA.
    2. Yannis M. Ioannides, 2022. "Endogenous Social Networks And Inequality In An Intergenerational Setting," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(4), pages 1691-1715, November.
    3. Gradstein, Mark & Justman, Moshe, 2018. "Diversity and Growth," IZA Discussion Papers 11553, Institute of Labor Economics (IZA).
    4. Albornoz, Facundo & Cabrales, Antonio & Hauk, Esther, 2016. "Targeted socialization and production," CRETA Online Discussion Paper Series 23, Centre for Research in Economic Theory and its Applications CRETA.
    5. Zenou, Yves & Del Bello, Carlo & Panebianco, Fabrizio & Verdier, Thierry, 2016. "Cultural Transmission and Socialization Spillovers in Education," CEPR Discussion Papers 11419, C.E.P.R. Discussion Papers.

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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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