Inequality and network effects
Inequality among individuals has many causes and dimensions, the most studied source is family background, the intergenerational transmission. Family transmission may be seen as a one-to-one channel through which parents transmit a multidimensional input to their sons but it is easy to image a richer and more biological mechanism. Interactions among sons can be added to this framework, the intragenerational transmission. People interact and influence each other during decision making process, in particular these peer effects take place in educational path. Considering a network model presents many advantages in terms of identification strategy and economic concept. Social context, here identified through networks, has an important role in determining educational outcome, an important determinant of salary and work satisfaction level. A stronger effect for older students in the high school suggests a deeper influence among people when moment to decide is coming.