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Intergenerational correlation and social interactions in education

Bervoets, Sebastian; & Zenou, Yves. (2017). Intergenerational correlation and social interactions in education. European Economic Review, 92, 13-30.

Bervoets, Sebastian; & Zenou, Yves. (2017). Intergenerational correlation and social interactions in education. European Economic Review, 92, 13-30.

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We propose a dynastic model where individuals are born into an educated or uneducated environment that they inherit from their parents. We study the impact of social interactions on the correlation in parent-child educational status, independently of any parent-child interaction. When the level of social interactions is decided by a social planner, we show that the correlation in education status between generations decreases very fast as social interactions increase. In turn, when the level of social interactions is decided by the individuals themselves, we show that the intergenerational correlation still decreases, although less rapidly than with exogenous social interactions.


Social mobility
Strong and weak ties
Intergenerational correlation
Education


JOUR



Bervoets, Sebastian
Zenou, Yves



2017


European Economic Review

92


13-30


December 5, 2016




0014-2921

10.1016/j.euroecorev.2016.11.005



6739