Multinominal choice with social interactions: occupations in Victorian London

Guerra, José Alberto and Mohnen, Myra (2022) Multinominal choice with social interactions: occupations in Victorian London. Review of Economics and Statistics, 104 (4). 736 - 747. ISSN 0034-6535

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Abstract

We study the importance of social interactions on 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 data set, 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
Official URL:	https://direct.mit.edu/rest
Additional Information:	© 2020 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.
Divisions:	Centre for Economic Performance
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Date Deposited:	29 Jul 2022 14:54
Last Modified:	18 Apr 2024 01:15
URI:	http://eprints.lse.ac.uk/id/eprint/115715

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