The centrality of an agent in a network has been shown to be crucial in explaining different behaviors and outcomes. In this paper, we propose an axiomatic approach to characterize a class of centrality measures for which the centrality of an agent is recursively related to the centralities of...

The centrality of an agent in a network has been shown to be crucial in explaining different behaviors and outcomes. In this paper, we propose an axiomatic approach to characterize a class of centrality measures for which the centrality of an agent is recursively related to the centralities of...

The paper mainly addresses three questions: 1) do workers tend to be employed by employers of the same ethnic group; 2) what is the structure of the equilibrium wage contract; and 3) do more ethnically homogeneous labour markets tend to have different labour contracts than more ethnically...

Using unique geo-coded information on the residential address of a representative sample of American adolescents and their friends, we revisit the importance of geographical proximity in shaping education outcomes. Our findings reveal no evidence of residential neighborhood effects. Social...

We develop two different social network models with different economic foundations. In the local-aggregate model, it is the sum of friends' efforts in some activity that affects the utility of each individual while, in the local-average model, it is costly to deviate from the average effort of...

The aim of this paper is to provide a new mechanism based on social interactions explaining why minority workers have worse labor-market outcomes than majority workers. Building on Granovetter's idea that weak ties are superior to strong ties for providing support in getting a job, we develop a...

We develop a model in which delinquents compete with each other in criminal activities but may benefit from being friends with other criminals by learning and acquiring proper know-how on the crime business. By taking the social network connecting agents as given, we study the subgame perfect...

We examine how interaction choices depend on the interplay of social and physical distance, and show that agents who are more central in the social network, or are located closer to the geographic center of interaction, choose higher levels of interactions in equilibrium. As a result, the level...

We study peer effects in crime by analyzing co-offending networks. We first provide a credible estimate of peer effects in these networks equal to 0.17. This estimate implies a social multiplier of 1.2 for those individuals linked to only one co-offender and a social multiplier of 2 for those...

This paper explores a novel mechanism of gender identity formation. Specifically, we explore how the work behavior of a teenager's own mother, as well as that of her friends' mothers, affect her work decisions in adulthood. The first mechanism is commonly included in economic models. The second,...