We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … homophily levels. As a possible application we provide a stylized labor market model, where a firm can hire a worker via the …

We propose a random network model incorporating heterogeneity of agents and a continuous notion of homophily. Unlike … the vast majority of the corresponding economic literature, we capture homophily in terms of similarity rather than … characteristics. A homophily parameter directly determines the strength of this effect. As a main result, we show that for any …

average, children's homophily acts as a complement to the educational effort of highly educated parents but as a substitute … interactions with other low-educated students (i.e., homophily), which reduces the education effort of their parents and, thus …

gap. The evidence is consistent with a homophily-enforced mechanism, by which friendship causes initially politically …

Can outside interventions foster socio-culturally diverse friendships? We executed a large field experiment that … can affect face-to-face networks and foster diverse friendships in groups that already know each other, but they also …

directly address potential sorting into friendships based on typically unobserved determinants of study time. We develop a …