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

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  • Plug, Erik

    (University of Amsterdam)

  • van der Klaauw, Bas

    (Vrije Universiteit Amsterdam)

  • Ziegler, Lennart

    (University of Vienna)

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 of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp9074
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    Cited by:

    1. Andrea Morescalchi, 0. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 0, pages 1-50.
    2. Andrea Morescalchi, 2021. "A new career in a new town. Job search methods and regional mobility of unemployed workers," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 20(2), pages 223-272, May.
    3. Obbey Ahmed Elamin, 2018. "Impact of Informal Job-search on Wages for University Graduates in Egypt and Jordan," Working Papers 1272, Economic Research Forum, revised 19 Dec 2018.
    4. Marco Bertoni & Giorgio Brunello & Lorenzo Cappellari, 2020. "Who benefits from privileged peers? Evidence from siblings in schools," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 35(7), pages 893-916, November.
    5. Cobb-Clark, Deborah A. & Dahmann, Sarah C. & Gielen, Anne C., 2020. "The Intergenerational Effects of Requiring Unemployment Benefit Recipients to Engage in Non-Search Activities," IZA Discussion Papers 13618, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    occupational choice; informal job search; intergenerational effects; social networks;
    All these keywords.

    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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