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Multinomial Choice with Social Interactions: Occupations in Victorian London

Guerra, José-Alberto and Mohnen, Myra (2022) 'Multinomial Choice with Social Interactions: Occupations in Victorian London.' The Review of Economics and Statistics (4). pp. 736-747. ISSN 0034-6535

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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
Faculty of Social Sciences > Economics, Department of
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 02 Nov 2020 16:15
Last Modified: 12 Jul 2022 06:41

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