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on Network Economics |
| By: | Nicoletta Berardi; Marie Lalanne; Paul Seabright |
| Abstract: | This paper examines how networks of professional contacts contribute to the development of the careers of executives of North American and European companies. We build a dynamic model of career progression in which career moves may both depend upon existing networks and contribute to the development of future networks. We test the theory on an original dataset of nearly 73 000 executives in over 10 000 firms. In principle professional networks could be relevant both because they are rewarded by the employer and because they facilitate job mobility. Our econometric analysis suggests that, although there is a substantial positive correlation between network size and executive compensation, with an elasticity of around 20%, almost all of this is due to unobserved individual characteristics. The true causal impact of networks on compensation is closer to an elasticity of 1 or 2% on average, all of this due to enhanced probability of moving to a higher-paid job. And there appear to be strongly diminishing returns to network size. |
| Keywords: | professional networks, labor mobility, executive compensation. |
| JEL: | E02 E32 E62 F41 H20 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:723&r=all |
| By: | Rute Martins Caeiro |
| Abstract: | This paper analyzes the role of social networks in the diffusion of knowledge and adoption of cultivation techniques, from trainees to the wider community, in the context of an extension project in Guinea-Bissau. In order to test for social learning, we exploit a detailed census of households and social connections across different dimensions. More precisely, we make use of a village photo directory in order to obtain a comprehensive and fully mapped social network dataset. We find evidence that agricultural information spreads across networks from project participants to non-participants, with different networks having different importance. The most relevant connection is found to be between the network of people from which individuals would ‘borrow money’. We are also able to disentangle the relative importance of weak and strong ties: in our context, weak ties are as important in the diffusion of agricultural knowledge as strong ties. Despite positive diffusion effects in knowledge, we found limited evidence of network effects in adoption behavior. Finally, using longitudinal network data, we document improvements in the network position of treated farmers over time. |
| JEL: | O13 O31 O33 Q16 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26065&r=all |
| By: | Jason Fletcher (Robert M. La Follette School of Public Affairs, University of Wisconsin); Stephen Ross (University of Connecticut); Yuxiu Zhang (Genentech) |
| Abstract: | This paper examines the impact of youth friendship links on student's own academic performance (grade point average) using the Add Health. We estimate a reduced form, high dimensional fixed effects model of within cohort or grade friendship links, and use this model to predict each student's number of friends whose mothers have a four year college degree. The effects of friendship links are identified using across-cohort, within school variation in demographic composition of the student's cohort or grade. We find that increases in number of friendship links with students whose mothers are college educated raises grade point average among girls, but not among boys. Additional analyses suggest a positive view of the school environment and a perception of one's self as functioning well in that environment as possible mechanisms. The effects are relatively broad based across students over maternal education, racial and ethnic composition and across schools that vary in demographic composition over the same variables. |
| Keywords: | Social Interactions; Friendships; Heterogeneous Peer Effects; Grades; Cohort Study; Non-Cognitive Effects |
| JEL: | I21 J13 R23 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2019-043&r=all |
| By: | Costas Meghir (Cowles Foundation, Yale University, NBER, IZA, CEPR, and Institute for Fiscal Studies); Ahmed Mushfiq Mobarak (Cowles Foundation, Yale University); Ahmed Corina Mommaerts (University of Wisconsin – Madison); Ahmed Melanie Morten (Stanford University and NBER) |
| Abstract: | Do new migration opportunities for rural households change the nature and extent of informal risk sharing? We experimentally document that randomly offering poor rural households subsidies to migrate leads to a 40% improvement in risk sharing in their villages. We explain this finding using a model of endogenous migration and risk sharing. When migration is risky, the network can facilitate migration by insuring that risk, which in turn crowds-in risk sharing when new migration opportunities arise. We estimate the model and ?nd that welfare gains from migration subsidies are 42% larger, compared with the welfare gains without spillovers, once we account for the changes in risk sharing. Our analysis illustrates that (a) ignoring the spillover effects on the network gives an incomplete picture of the welfare effects of migration, and (b) informal risk sharing may be an essential determinant of the takeup of new income-generating technologies. |
| Keywords: | Informal Insurance, Migration, Bangladesh, RCT |
| JEL: | D12 D91 D52 O12 R23 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2185&r=all |