Goodbye My Friends and Goodbye My Career: Evidence from the Movie Industry

Abstract

In this study, we provide causal evidence that network connections significantly influence individuals’ career trajectories. Using data on actors’, directors’, and producers’ work histories and movie performances from 1995 to 2014, we examine the impact of losing a professional connection due to the death of a director or producer. Our identification strategy leverages the exogenous timing of these deaths, which is independent of an actor’s intrinsic ability. Our findings reveal that losing such a connection leads to a 7.78% decline in an actor’s subsequent movie output, with the effect being more pronounced for less experienced actors and intensifying over time. The negative impact is even stronger when considering quality-adjusted movie output. Our analysis suggests that mentorship and referrals are likely mechanisms driving these results, as evidenced by diminishing returns from additional professional connections, and the significance of the age gap between the deceased directors/producers and the treated actors.

Keywords: self-marketing, network, death shock, referral, mentorship, movie industry, career development

JEL Classification: C21, C31, D12, J46, L82, M31, M50, J24