Working Paper

The Dynamics of Networks and Homophily

Matthew O. Jackson, Stephen M. Nei, Erik Snowberg, Leeat Yariv
CESifo, Munich, 2023

CESifo Working Paper No. 10210

We examine friendships and study partnerships among university students over several years. At the aggregate level, connections increase over time, but homophily on gender and ethnicity is relatively constant across time, university residences, and different network layers. At the individual level, homophilous tendencies are persistent across time and network layers. Furthermore, we see assortativity in homophilous tendencies. There is weaker, albeit significant, homophily over malleable characteristics−risk preferences, altruism, study habits, and so on. We find little evidence of assimilation over those characteristics. We also document the nuanced impact of network connections on changes in Grade Point Average.

CESifo Category
Economics of Education
Empirical and Theoretical Methods
Behavioural Economics
Keywords: homophily, social networks, dynamic networks, undergraduate education, peer effects
JEL Classification: D850, I210, J150, J160, Z130