References & Citations
Economics > Econometrics
Title: Party On: The Labor Market Returns to Social Networks in Adolescence
(Submitted on 17 Oct 2022 (v1), last revised 26 Mar 2024 (this version, v5))
Abstract: We investigate the returns to adolescent friendships on earnings in adulthood using data from the National Longitudinal Study of Adolescent to Adult Health. Because both education and friendships are jointly determined in adolescence, OLS estimates of their returns are likely biased. We implement a novel procedure to obtain bounds on the causal returns to friendships: we assume that the returns to schooling range from 5 to 15% (based on prior literature), and instrument for friendships using similarity in age among peers. Having one more friend in adolescence increases earnings between 7 and 14%, substantially more than OLS estimates would suggest.
Submission history
From: Shuyang Sheng [view email][v1] Mon, 17 Oct 2022 20:43:21 GMT (431kb,D)
[v2] Sat, 4 Mar 2023 13:12:56 GMT (496kb,D)
[v3] Tue, 22 Aug 2023 16:08:20 GMT (547kb,D)
[v4] Sun, 1 Oct 2023 06:12:41 GMT (451kb,D)
[v5] Tue, 26 Mar 2024 22:41:31 GMT (451kb,D)
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