This paper shows that industry choices of entrepreneurs are determined by their social networks. The separation of residential and business addresses helps us establish the causality, because we can safely argue that residential addresses determine social networks but do not directly affect...

Econometric simulations provide no evidence that families in West Virginia encouraged sons to drop out of high school in order to earn income as coal miners, at the net expense of later income that they would have earned with more education. Estimates of the typical family's subjective rate of...