July 26, 2022

The role of unobservable characteristics in friendship network formation.

By: Pablo Brañas-Garza (Universidad de Loyola Andalucia); Lorenzo Ductor (Department of Economic Theory and Economic History, University of Granada.); Jaromir Kovarik (‡Universidad del País Vasco UPV/EHU and University of West Bohemia)

Inbreeding homophily is a prevalent feature of human social networks with important individual and group-level social, economic, and health consequences. The literature has proposed an overwhelming number of dimensions along which human relationships might sort, without proposing a unified empirically-grounded framework for their categorization. We exploit rich data on a sample of University freshmen with very similar characteristic – age, race and education- and contrast the relative importance of observable vs. unobservables characteristics in their friendship formation. We employ Bayesian Model Averaging, a methodology explicitly designed to target model uncertainty and to assess the robustness of each candidate attribute while predicting friendships. We show that, while observable features such as assignment of students to sections, gender, and smoking are robust key determinants of whether two individuals befriend each other, unobservable attributes, such as personality, cognitive abilities, economic preferences, or socio-economic aspects, are largely sensible to the model specification, and are not important predictors of friendships.

Keywords: editorial boards, journals, concentration, power, busyness, innovation, impact
JEL: D8 D85 J7 J16 O30

URL: http://d.repec.org/n?u=RePEc:gra:wpaper:22/08&r=

June 28, 2022


June 23, 2022


June 23, 2022


June 23, 2022


June 23, 2022


June 23, 2022


Educational inequality

June 2, 2022

Educational Inequality

By: Blanden, Jo (University of Surrey); Doepke, Matthias (Northwestern University); Stuhler, Jan (Universidad Carlos III de Madrid)

Abstract: This chapter provides new evidence on educational inequality and reviews the literature on the causes and consequences of unequal education. We document large achievement gaps between children from different socio-economic backgrounds, show how patterns of educational inequality vary across countries, time, and generations, and establish a link between educational inequality and social mobility. We interpret this evidence from the perspective of economic models of skill acquisition and investment in human capital. The models account for different channels underlying unequal education and highlight how endogenous responses in parents’ and children’s educational investments generate a close link between economic inequality and educational inequality. Given concerns over the extended school closures during the Covid-19 pandemic, we also summarize early evidence on the impact of the pandemic on children’s education and on possible long-run repercussions for educational inequality.

Keywords: educational inequality, education finance, social mobility
JEL: I21 I24 J62

URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp15225&r=


June 2, 2022

By: Richard Layard

Abstract: As societies become richer, they do not become happier. This paradox has led to a growing interest in the science of wellbeing, and how policymakers can evaluate policies in terms of what will improve wellbeing. Economists investigate what is important for wellbeing and the influence of wellbeing on working life, education and health.

Keywords: Climate Change, Education, Employment, Health, Inequality, Unemployment, Wellbeing, Wages, Happiness, Public Policy

URL: http://d.repec.org/n?u=RePEc:cep:cepins:08&r=

April 7, 2022


Unemployment, Inequality & Poverty

Edition April 4