nep-net New Economics Papers
on Network Economics
Issue of 2017‒01‒15
five papers chosen by
Pedro CL Souza
Pontifícia Universidade Católica do Rio de Janeiro

  1. Cool to be Smart or Smart to be Cool? Understanding Peer Pressure in Education By Leonardo Bursztyn; Georgy Egorov; Robert Jensen
  2. Gender Peer Effects Heterogeneity in Obesity By Rokhaya Dieye; Bernard Fortin
  3. Interfirm Relationships and Business Performance By Cai, Jing; Szeidl, Adam
  4. Assessing the role of social networks on migrant labor market outcomes: Evidence from a representative immigrant survey By Catia Batista; Ana Isabel Costa
  5. R&D networks and regional knowledge production in Europe. Evidence from a space-time model By Wanzenböck, Iris; Piribauer, Philipp

  1. By: Leonardo Bursztyn; Georgy Egorov; Robert Jensen
    Abstract: Concerns about social image may negatively affect schooling behavior. We identify two potentially important peer cultures: one that stigmatizes effort (thus, where it is “smart to be cool”) and one that rewards ability (where it is “cool to be smart”). We build a model showing that either may lower the takeup of educational activities when takeup and performance are potentially observable to peers. We design a field experiment allowing us to test whether students are influenced by these concerns at all, and then which they are more influenced by. We examine high schools in two settings: a low-income, high minority share area and a higher-income, lower minority share area. In both settings, peer pressure reduces takeup of an SAT prep package. We show that this is consistent with a greater concern for hiding effort in the lower-income school, and a greater concern with hiding low ability in the higher-income schools.
    JEL: C93 D83 I21 I24
    Date: 2017–01
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:23020&r=net
  2. By: Rokhaya Dieye; Bernard Fortin
    Abstract: This paper explores gender peer effects heterogeneity in adolescent Body Mass Index (BMI). We propose a utility-based non-cooperative social network model with effort technology. We allow the gender composition to influence peer effects. We analyze the possibility of recovering the fundamentals of our structural model from the best-response functions. We provide identification conditions of these functions generalizing those of the homogeneous version of the model. Extending Liu and Lee [2010], we consider 2SLS and GMM strategies to estimate our model using Add Health data. We provide tests of homophily in the formation of network and reject them after controlling for network (school) fixed effects. The joint (endogenous plus contextual) gender homogeneous model is rejected. However, we do not reject that the endogenous effects are the same. This suggests that the source of gender peer effects heterogeneity is the contextual effects. We find that peers’ age, parents’ education, health status, and race are relevant for the latter effects and are gender-dependent.
    Keywords: Obesity, Social Networks, Gender, Heterogeneity, Peer Effects, Identification, Add Health,
    JEL: L12 C31 Z13 D85
    Date: 2017–01–11
    URL: http://d.repec.org/n?u=RePEc:cir:cirwor:2017s-03&r=net
  3. By: Cai, Jing; Szeidl, Adam
    Abstract: We organized business associations for the owner-managers of randomly selected young Chinese firms to study the effect of business networks on firm performance. We randomized 2,800 firms into small groups whose managers held monthly meetings for one year, and into a "no-meetings" control group. We find that: (1) The meetings increased firm revenue by 8.1 percent, and also significantly increased profit, factors, inputs, the number of partners, borrowing, and a management score; (2) These effects persisted one year after the conclusion of the meetings; and (3) Firms randomized to have better peers exhibited higher growth. We exploit additional interventions to document concrete channels. (4) Managers shared exogenous business-relevant information, particularly when they were not competitors, showing that the meetings facilitated learning from peers. (5) Managers created more business partnerships in the regular than in other one-time meetings, showing that the meetings improved supplier-client matching. (6) Firms whose managers discussed management, partners, or finance improved more in the associated domain, suggesting that the content of conversations shaped the nature of gains.
    Keywords: business networks; field experiment; information diffusion; meetings; peer effects; referrals; Trust
    JEL: D22 L14 O12 O14
    Date: 2016–12
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:11717&r=net
  4. By: Catia Batista; Ana Isabel Costa
    Abstract: What role do social networks play in determining migrant labor market outcomes? We examine this question using data from a random sample of 1500 immigrants living in Ireland. We propose a theoretical model formally predicting that immigrants with more contacts have additional access to job offers, and are therefore better able to become employed and choose higher paid jobs. Our empirical analysis confirms these findings, while focusing more generally on the relationship between migrants’ social networks and a variety of labor market outcomes (namely wages, employment, occupational choice and job security), contrary to the literature. We find evidence that having one more contact in the network is associated with an increase of 11pp in the probability of being employed and with an increase of about 100 euros in the average salary. However, our data is not suggestive of a network size effect on occupational choice and job security. Our findings are robust to sample selection and other endogeneity concerns. JEL codes: D8, F22, J3
    Keywords: Social networks, International migration, Wage determination, Labor market integration
    Date: 2016
    URL: http://d.repec.org/n?u=RePEc:unl:novafr:wp1601&r=net
  5. By: Wanzenböck, Iris; Piribauer, Philipp
    Abstract: In this paper we estimate space-time impacts of the embeddedness in R&D networks on regional knowledge production by means of a dynamic spatial panel data model with non-linear effects for a set of 229 European NUTS-2 regions in the period 1999-2009. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D endeavours in European Framework Programmes. We observe positive immediate impacts on regional knowledge production arising from increased embeddedness in EU funded R&D networks, in particular for regions with lower own knowledge endowments. However, long-term impacts of R&D network embeddedness are comparatively small.(authors' abstract)
    Keywords: R&D networks; European Framework Programme; regional knowledge production; dynamic spatial panel data model; space-time impacts
    Date: 2015–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wus005:4652&r=net

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