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Stratification, social networks in the labour market, and intergenerational mobility

Stratifikation, soziale Netzwerke im Arbeitsmarkt und intergenerationale Mobilität

Dan Anderberg () and Fredrik Andersson ()

No SP II 2003-20, Discussion Papers, Research Unit: Market Processes and Governance from Social Science Research Center Berlin (WZB)

Abstract: This paper uses a model of human capital accumulation, labour market distortions, word-of-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. Stratified equilibria, when they exist, are characterised by low intergenerational social mobility and inefficient use of talent. The equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups.

Date: 2003
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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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