Working Paper: CEPR ID: DP5244
Authors: Antoni Calvó-Armengol; Eleonora Patacchini; Yves Zenou
Abstract: This paper studies whether structural properties of friendship networks affect individual outcomes in education and crime. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight on her distant friends. Using a very detailed dataset of adolescent friendship networks, we show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual's position in a network (as measured by her Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Bonacich centrality increases the level of individual delinquency by 45% of one standard deviation and the pupil school performance by 34% of one standard deviation.
Keywords: centrality measure; delinquency; network structure; peer influence; school performance
JEL Codes: A14; I21; K42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Bonacich centrality (Z13) | individual delinquency (K42) |
| Bonacich centrality (Z13) | pupil school performance (I21) |