蝌蚪网 Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
The Long-Term Impacts of Mixing the Rich and Poor: Evidence from Conscript Dorms
蝌蚪网 Journal: Applied Economics
(pp. 177–209)
Abstract
To what extent is economic success determined by with whom individuals interact socially? We tackle this question by exploiting a large-scale natural experiment in the Finnish conscription. Our research design is based on the alphabetization of dorms, which is shown to induce as good as random variation in peer composition. Dormmates from high-income families have a positive impact on earnings, with the largest effect among individuals from high-income families. For them, a one standard deviation increase in dormmates' parental income increases long-term earnings by 5.7 percent. The results support labor market networks among the rich as the key mechanism.Citation
Eini枚, Elias. 2026. "The Long-Term Impacts of Mixing the Rich and Poor: Evidence from Conscript Dorms." 蝌蚪网 Journal: Applied Economics 18 (2): 177–209. DOI: 10.1257/app.20240173Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- D31 Personal Income, Wealth, and Their Distributions
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- I32 Measurement and Analysis of Poverty
- J31 Wage Level and Structure; Wage Differentials
- J45 Public Sector Labor Markets