Boys’ Club: Cultural Inheritance and Social Networks and their Effects on Labor Market outcomes
35 Pages Posted: 30 Nov 2021 Last revised: 7 Dec 2021
Date Written: November 29, 2021
Abstract
This study aims to identify the causal effect of cultural inheritance on formal labor market variables via the network effect. The identification strategy is based on an epidemiological approach to understanding cultural effects on economic variables that allows us to separate cultural aspects between groups that share the same institutions and economic environments. For this, a rich database is organized based on the identification of individuals of Jewish and non-Jewish Polish descent. The results of the income difference between these two groups are explained by the labor network effect. Furthermore, we find an important difference in the role of gender in the formation of these networks, such that the network effect is mainly produced by the network formed by men.
Keywords: labor market, gender, networks, family ties, culture
JEL Classification: J01, J15, J62, D85.
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