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American Economic Journal: Applied Economics: Vol. 2 No. 1 (January 2010)

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Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa

Article Citation

Magruder, Jeremy R. 2010. "Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa." American Economic Journal: Applied Economics, 2(1): 62-85.

DOI: 10.1257/app.2.1.62

Abstract

This paper examines the importance of network-based intergenerational correlations in South Africa. I use longitudinal data on young South Africans to examine the covariance of children's employment with the usefulness of parents in their job search. I find that fathers serve as useful network connections to their sons (not daughters), and that mothers do not seem to be useful network connections. The father-son effect is robust to alternate explanations of specific human capital and correlated networks. The size of this effect is large. Present fathers' utility as network connections may be responsible for a one-third increase in their sons' employment rates. (JEL D31, J12, J13, J24, J62, O15, Z13)

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Authors

Magruder, Jeremy R. (U CA, Berkeley)

JEL Classifications

D31: Personal Income, Wealth, and Their Distributions
J12: Marriage; Marital Dissolution; Family Structure; Domestic Abuse
J13: Fertility; Family Planning; Child Care; Children; Youth
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
J62: Job, Occupational, and Intergenerational Mobility; Promotion
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration
Z13: Economic Sociology; Economic Anthropology; Social and Economic Stratification

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