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Do Parental Networks Pay Off? Linking Children's Labor-Market Outcomes to their Parents' Friends

Author

Listed:
  • Plug, Erik

    () (University of Amsterdam)

  • van der Klaauw, Bas

    () (Vrije Universiteit Amsterdam)

  • Ziegler, Lennart

    () (University of Amsterdam)

Abstract

This paper examines whether children are better off if their parents have stronger social networks. Using data on high-school friendships of parents, we analyze whether the number and characteristics of friends affect the labor-market outcomes of children. While parental friendships formed in high school appear long lasting, we find no significant impact on their children's occupational choices and earnings prospects. These results do not change when we account for network endogeneity, network persistency and network measurement error. Only when children enter the labor market, we find that friends of parents have a marginally significant but small influence on the occupational choice of children.

Suggested Citation

  • Plug, Erik & van der Klaauw, Bas & Ziegler, Lennart, 2015. "Do Parental Networks Pay Off? Linking Children's Labor-Market Outcomes to their Parents' Friends," IZA Discussion Papers 9074, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp9074
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    References listed on IDEAS

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    More about this item

    Keywords

    occupational choice; informal job search; intergenerational effects; social networks;

    JEL classification:

    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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