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- W3213887645 abstract "This study models how social networks that span an individual’s entire life cycle affect human capital acquisition and subsequent employment outcomes. Early-life social affiliations can affect the cost of human capital, while later-life connections can affect the earnings derived from previously acquired human capital. The dynamic interactions between early-life network-mediated investments and later-life networkmediated returns give rise to multiple, fully consistent, rational expectations equilibria. These self-fulling expectations imply development bias, wherein heterogeneous beliefs about the future persistently generate unequal outcomes among social groups. When the model is applied to a country’s development cycle, the theoretical findings suggest that, while between-group inequality can reduce economic growth in a mature economy, it may increase growth in an economy in the initial stages of its development. Relevant historical examples of between-group dynamics are discussed extensively." @default.
- W3213887645 created "2021-11-22" @default.
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- W3213887645 date "2021-01-01" @default.
- W3213887645 modified "2023-09-27" @default.
- W3213887645 title "Birds of a Feather: Life Cycle Social Externalities, Heterogeneous Beliefs, and Development Bias" @default.
- W3213887645 hasPublicationYear "2021" @default.
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