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

28 Pages Posted: 29 Dec 2017

See all articles by Erik Plug

Erik Plug

University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute; IZA Institute of Labor Economics

Bas Klaauw

VU University Amsterdam

Lennart Ziegler

University of Vienna

Multiple version iconThere are 2 versions of this paper

Date Written: January 2018

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.

Keywords: Informal job search, intergenerational effects, occupational choice, social networks

Suggested Citation

Plug, Erik and Klaauw, Bas and Ziegler, Lennart, Do Parental Networks Pay Off? Linking Children's Labor‐Market Outcomes to Their Parents' Friends (January 2018). The Scandinavian Journal of Economics, Vol. 120, Issue 1, pp. 268-295, 2018. Available at SSRN: https://ssrn.com/abstract=3094136 or http://dx.doi.org/10.1111/sjoe.12227

Erik Plug (Contact Author)

University of Amsterdam - Amsterdam School of Economics (ASE) ( email )

Roetersstraat 11
1018 WB Amsterdam
Netherlands
+31 20 5254311 (Phone)
+31 20 5254310 (Fax)

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Bas Klaauw

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

Lennart Ziegler

University of Vienna ( email )

Oskar-Morgenstern-Platz 1
Vienna, 1090
Austria

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
99
PlumX Metrics