Institutional Affiliation: Audible, Inc.
|Party On: The Labor Market Returns to Social Networks and Socializing|
with , , : w27337
A person’s schooling years are a formative time for cognitive development, and also a period of intense social interaction and friendship formation. In this paper, we estimate the production of social capital during adolescence and its effect on wages. We develop a model where homophily and coordination play crucial roles in the decision to socialize and study, which in turn determine educational attainment, network formation, and labor market outcomes. We document that individuals make investments to accumulate friends and other forms of social capital. Sometimes these investments compete with schooling investments (particularly when they involve alcohol consumption), but not always. These social investments have payoffs in the labor market and cannot be thought of as pure leisure. We est...
|Does Condominium Development Lead to Gentrification?|
with , , , : w26170
The condominium structure, which facilitates ownership of units in multi-family buildings, was only introduced to the US during the 1960s. We ask whether the subsequent development of condominiums encouraged high-income households to move to central cities. Although we document a strong positive correlation between condominium density and resident income, this association is entirely driven by endogenous development of condos in areas otherwise attractive to high-income households. When we instrument for condo density using the passage of municipal regulations limiting condo conversions, we find little association between condo development and resident income, education or race.