Strength in Numbers: Networks as a Solution to Occupational Traps

@article{Munshi2011StrengthIN,
  title={Strength in Numbers: Networks as a Solution to Occupational Traps},
  author={Kaivan Munshi},
  journal={The Review of Economic Studies},
  year={2011},
  volume={78},
  pages={1069-1101}
}
  • Kaivan Munshi
  • Published 2011
  • Economics
  • The Review of Economic Studies
The "new classical" theory states that families in low-skill occupations with low levels of human capital can stay poor from one generation to the next, while families in high-skill occupations with correspondingly high levels of human capital stay wealthy, despite being endowed with the same level of ability on average. This paper proposes an informal institutional mechanism--the community-based network--through which families belonging to the same neighbourhood or kinship group can bootstrap… Expand
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