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Stratification, Social Networks in the Labour Market and Intergenerational Mobility

Dan Anderberg and Fredrik Andersson ()
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Dan Anderberg and Fredrik Andersson: Department of Economics, Royal Holloway, University of London

Authors registered in the RePEc Author Service: Dan Anderberg () and Fredrik Andersson ()

No 03/8, Royal Holloway, University of London: Discussion Papers in Economics from Department of Economics, Royal Holloway University of London

Abstract: This paper uses a model of human capital accumulation, labour market distortions, wordof-mouth communication, and community formation to analyse socio-economic stratification, educational choices and intergenerational social mobility. Workers obtain information about job opportunities from individuals in their local environment, implying that the social environment partly determines the expected returns to education. Strati…ed equilibria, when they exist, are characterised by low intergenerational social mobility and ine¢cient use of talent. The equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups.

New Economics Papers: this item is included in nep-geo, nep-net and nep-ure
Date: 2003-12, Revised 2003-12
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Related works:
Journal Article: Stratification, Social Networks in the Labour Market, and Intergenerational Mobility (2007) Downloads
Working Paper: Stratification, social networks in the labour market, and intergenerational mobility (2003) Downloads
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