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

Anderberg, Dan and Andersson, Fredrik LU (2007) In Economic Journal 117(520). p.782-812
Abstract
Young individuals, taking the locational choices made by their altruistic parents as given, decide whether or not to acquire skills. The use of location-specific word-of-mouth communication in the transmission of information about (skilled) job opportunities implies that the local social environment partly determines an individual's expected returns to education. Stratified equilibria, when they exist, are characterised by low intergenerational social mobility and inefficient use of talent. In addition, the equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups. Non-stratified equilibria are likely to be destabilised by measures that encourage... (More)
Young individuals, taking the locational choices made by their altruistic parents as given, decide whether or not to acquire skills. The use of location-specific word-of-mouth communication in the transmission of information about (skilled) job opportunities implies that the local social environment partly determines an individual's expected returns to education. Stratified equilibria, when they exist, are characterised by low intergenerational social mobility and inefficient use of talent. In addition, the equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups. Non-stratified equilibria are likely to be destabilised by measures that encourage education. (Less)
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author
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Economic Journal
volume
117
issue
520
pages
782 - 812
publisher
Wiley-Blackwell
external identifiers
  • wos:000246919500009
  • scopus:34249985046
ISSN
1468-0297
DOI
10.1111/j.1468-0297.2007.02050.x
language
English
LU publication?
yes
id
30c02ef8-3f66-4557-831e-55b260801079 (old id 660529)
date added to LUP
2007-12-05 09:58:39
date last changed
2017-01-01 04:33:51
@article{30c02ef8-3f66-4557-831e-55b260801079,
  abstract     = {Young individuals, taking the locational choices made by their altruistic parents as given, decide whether or not to acquire skills. The use of location-specific word-of-mouth communication in the transmission of information about (skilled) job opportunities implies that the local social environment partly determines an individual's expected returns to education. Stratified equilibria, when they exist, are characterised by low intergenerational social mobility and inefficient use of talent. In addition, the equilibrium responses to factors that generally encourage education may, in stratified outcomes, be highly asymmetric across socio-economic groups. Non-stratified equilibria are likely to be destabilised by measures that encourage education.},
  author       = {Anderberg, Dan and Andersson, Fredrik},
  issn         = {1468-0297},
  language     = {eng},
  number       = {520},
  pages        = {782--812},
  publisher    = {Wiley-Blackwell},
  series       = {Economic Journal},
  title        = {Stratification, social networks in the labour market, and intergenerational mobility},
  url          = {http://dx.doi.org/10.1111/j.1468-0297.2007.02050.x},
  volume       = {117},
  year         = {2007},
}