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Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa

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  • Jeremy R. Magruder

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)

Suggested Citation

  • Jeremy R. Magruder, 2010. "Intergenerational Networks, Unemployment, and Persistent Inequality in South Africa," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 62-85, January.
    • Handle: RePEc:aea:aejapp:v:2:y:2010:i:1:p:62-85
    Note: DOI: 10.1257/app.2.1.62
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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