Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa

Jeremy Magruder

American Economic Journal: Applied Economics, 2010, vol. 2, issue 1, 62-85

Abstract: This paper examines the importance of network-based intergenerational correlations in South Africa. I use longitudinal data on young South Africans to examine the covariance of children's employment with the usefulness of parents in their job search. I find that fathers serve as useful network connections to their sons (not daughters), and that mothers do not seem to be useful network connections. The father-son effect is robust to alternate explanations of specific human capital and correlated networks. The size of this effect is large. Present fathers' utility as network connections may be responsible for a one-third increase in their sons' employment rates. (JEL D31, J12, J13, J24, J62, O15, Z13)

JEL-codes: D31 J12 J13 J24 J62 O15 Z13 (search for similar items in EconPapers)
Date: 2010
Note: DOI: 10.1257/app.2.1.62
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Citations: View citations in EconPapers (76)

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