2017

Intergenerational Correlation and Social Interactions in Education

Reprint No. 2017:5

Author(s): Sebastian Bervoets and Yves ZenouYear: 2017 Title: European Economic Review Volume (No.): 92 (February) Pages: 13–30
Online article (restrictions may apply)


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.


Reference:
Bervoets, Sebastian and Yves Zenou (2017), "Intergenerational Correlation and Social Interactions in Education". European Economic Review 92(February), 13–30.

An Agenda for Europe

Institutional Reform for Innovation and Entrepreneurship

Omslag 2017 Institutional Reform for Innovation and Entrepreneurship.jpg

The authors of this book, Niklas Elert, Magnus Henrekson and Mikael Stenkula, advise the economies of the European Union to become more entrepreneurial in promoting innovation and economic growth. The authors propose a reform strategy with respect to several aspects to achieve this goal.

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