Friendship Relations in the School Class and Adult Economic Attainment

47 Pages Posted: 27 Jul 2005

See all articles by Andrea Galeotti

Andrea Galeotti

University of Essex

Gerrit Mueller

ZEW – Leibniz Centre for European Economic Research; IZA Institute of Labor Economics

Date Written: July 2005

Abstract

We analyze the impact of adolescents' friendship relations in their final-year class of high school on subsequent labor market success. Based on a typology of network positions we locate each student within the social system of the school class as either: an isolate, a sycophant, a broker or a receiver. These positions identify individuals' social standing within the group of classmates and proxy for their interpersonal behavior and social competencies. We offer empirical evidence that differential social standing in adolescence predicts large and persistent earnings disparities over the entire life course. The estimated wage premia and penalties do not appear to be substantially confounded by measures of family and school resources, and materialize largely independent of differences in cognitive abilities, grade rank in class, personality traits or friends' characteristics. A moderate share of the earnings inequalities is mediated by differential post-secondary human and social capital investment. From a conceptual point of view, we contribute an application of egocentered network methods within conventional labor economic survey research.

Keywords: friendship ties, social capital, earnings

JEL Classification: A14, I21, J31

Suggested Citation

Galeotti, Andrea and Mueller, Gerrit, Friendship Relations in the School Class and Adult Economic Attainment (July 2005). IZA Discussion Paper No. 1682. Available at SSRN: https://ssrn.com/abstract=770044

Andrea Galeotti

University of Essex ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Gerrit Mueller (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 103443
Mannheim, 68034
Germany
0049 621 1235 152 (Phone)
0049 621 1235 225 (Fax)

HOME PAGE: http://www.zew.de/en/mitarbeiter/mitarbeiter.php3?action=mita&kurz=gmu

IZA Institute of Labor Economics

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

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