Education Transmission and Network Formation Article - Janvier 2023

Vincent Boucher, Carlo del Bello, Fabrizio Panebianco, Thierry Verdier, Yves Zenou

Vincent Boucher, Carlo del Bello, Fabrizio Panebianco, Thierry Verdier, Yves Zenou, « Education Transmission and Network Formation  », Journal of Labor Economics, janvier 2023, pp. 129-173. ISSN 0734-306X

Abstract

We propose a model of intergenerational transmission of education wherein children belong to either highly educated or low-educated families. Children choose the intensity of their social activities, while parents decide how much educational effort to exert. Using Add Health data, we find that, on average, children’s homophily acts as a complement to the educational effort of highly educated parents but as a substitute for the educational effort of low-educated parents. We also find that policies that subsidize kids’ socialization efforts can backfire for low-educated students because they tend to increase their interactions with other low-educated students.

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