Working Paper: NBER ID: w18475
Authors: Gabriella Conti; Andrea Galeotti; Gerrit Mueller; Stephen Pudney
Abstract: What makes you popular at school? And what are the labor market returns to popularity? We investigate these questions using an objective measure of popularity derived from sociometric theory: the number of friendship nominations received from schoolmates, interpreted as a measure of early accumulation of personal social capital. We develop an econometric model of friendship formation and labor market outcomes allowing for partial observation of networks, and provide new evidence on the impact of early family environment on popularity. We estimate that moving from the 20th to 80th percentile of the high-school popularity distribution yields a 10% wage premium nearly 40 years later.
Keywords: popularity; social capital; labor market returns; friendship; social skills
JEL Codes: A14; I21; J31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| number of friendship nominations received (indegree) (D79) | adolescent social standing (Z13) |
| adolescent social standing (Z13) | wages (J31) |
| number of friendship nominations received (indegree) (D79) | social skills developed during adolescence (Z13) |
| social skills developed during adolescence (Z13) | wages (J31) |
| connections established in high school (I23) | job opportunities (J68) |
| connections established in high school (I23) | social networks (Z13) |
| number of friendship nominations received (indegree) (D79) | wages (J31) |