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Homophily and Transmission of Behavioral Traits in Social Networks

Author

Listed:
  • Bhargava, Palaash

    (Columbia University)

  • Chen, Daniel L.

    (Toulouse School of Economics)

  • Sutter, Matthias

    (Max Planck Institute for Research on Collective Goods)

  • Terrier, Camille

    (Queen Mary University of London)

Abstract
Social networks are a key factor of success in life, but they are also strongly segmented on gender, ethnicity, and other demographic characteristics (Jackson, 2010). We present novel evidence on an understudied source of homophily, namely behavioral traits. Behavioral traits are important determinants of life-time outcomes. While recent work has focused on how these traits are influenced by the family environment or how they can be affected by childhood interventions, little is still known about how these traits are associated to social networks. Based on unique data that we collected using incentivized experiments on more than 2,500 French high-school students, we find high levels of homophily across all ten behavioral traits that we study (including social, risk, competitive preferences, and aspirations). Notably, the extent of homophily depends on similarities in demographic characteristics, in particular with respect to gender. Furthermore, the larger the number of behavioral traits that students share, the higher the overall homophily. Then, using network econometrics, we show that the observed homophily is not only an outcome of endogenous network formation, but is also a result of friends influencing each others' behavioral traits. Importantly, the transmission of traits is larger when students share demographic characteristics, such as gender, have been friends for longer or are friends with more popular individuals.

Suggested Citation

  • Bhargava, Palaash & Chen, Daniel L. & Sutter, Matthias & Terrier, Camille, 2022. "Homophily and Transmission of Behavioral Traits in Social Networks," IZA Discussion Papers 15840, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15840
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    Cited by:

    1. Zuckerman, David, 2024. "Multidimensional homophily," Journal of Economic Behavior & Organization, Elsevier, vol. 218(C), pages 486-513.

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    More about this item

    Keywords

    homophily; social networks; behavioral traits; peer effects; experiments;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General

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