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

Author(s)
Erik Plug, Bas van der Klaauw, Lennart Ziegler
Abstract

In this paper, we examine whether children are better off if their parents have more elaborate 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 do friends of parents have a marginally significant but small influence on their occupational choice.

Organisation(s)
Department of Economics
External organisation(s)
University of Amsterdam (UvA)
Journal
Scandinavian Journal of Economics
Volume
120
Pages
268-295
No. of pages
28
ISSN
0347-0520
DOI
https://doi.org/10.1111/sjoe.12227
Publication date
2018
Peer reviewed
Yes
Austrian Fields of Science 2012
Economic sociology, Labour economics
Keywords
ASJC Scopus subject areas
Portal url
https://ucris.univie.ac.at/portal/en/publications/do-parental-networks-pay-off-linking-childrens-labormarket-outcomes-to-their-parents-friends(2ee7de0c-4d8a-4c18-9621-dd61e53d0dea).html