Research Repository

Multinomial Choice with Social Interactions: Occupations in Victorian London

Guerra, José-Alberto and Mohnen, Myra (2020) 'Multinomial Choice with Social Interactions: Occupations in Victorian London.' The Review of Economics and Statistics. ISSN 0034-6535

[img]
Preview
Text
rest_a_00979.pdf - Accepted Version

Download (373kB) | Preview

Abstract

We study the importance of social interactions on the occupational choice in Victorian London using a multinomial choice model within an incomplete social network. Individuals form heterogeneous rational expectations about their peers' behaviors taking into account their characteristics and the strength of their ties. We show the conditions under which the endogenous, exogenous and correlated effects can be identified and a unique equilibrium can be established. Using a novel dataset, we proxy social groups by parish boundaries and strength of ties by geographic distances. Our results show the importance of the endogenous effects and reveal distinct effects by occupation.

Item Type: Article
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Elements
Date Deposited: 02 Nov 2020 16:15
Last Modified: 22 Feb 2021 16:15
URI: http://repository.essex.ac.uk/id/eprint/29017

Actions (login required)

View Item View Item