Data and Code for: The Long-Term Impacts of Mixing the Rich and Poor: Evidence from Conscript Dorms

Principal Investigator(s): View help for Principal Investigator(s) Elias Einiö, VATT Institute for Economic Research

Version: View help for Version V1

Name	File Type	Size	Last Modified
MRP			04/29/2025 06:08:AM

Project Citation:

Einiö, Elias. Data and Code for: The Long-Term Impacts of Mixing the Rich and Poor: Evidence from Conscript Dorms. Nashville, TN: American Economic Association [publisher], 2026. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2026-03-05. https://doi.org/10.3886/E214741V1

Project Description

Summary:

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 to estimate the effects of peers from different family backgrounds on long-term economic and educational outcomes. Our research design is based on the alphabetization of dorms within squadrons, which is shown to induce as good as random variation in peer composition. Using data on more than 50 thousand conscripts, we find that exposure to a dormmate from a high-income family has a positive impact on earnings, with the largest effect among individuals from high-income families. For them, a one-standard-deviation increase in parental income of dormmates increases long-term earnings by around 5.7%. Effects on earnings of individuals from poorer families are small. The results support labor market networks among the rich as the key mechanism. The findings imply that social sorting reinforces wage inequality between richer and poorer families.

Scope of Project

JEL Classification:
J24 Human Capital; Skills; Occupational Choice; Labor Productivity
J31 Wage Level and Structure; Wage Differentials

Geographic Coverage: Finland

Time Period(s): 1993 – 2016

Related Publications

Download this project

Published Versions

V1 [2026-03-05]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as received from the data depositor. As of April 2026, depositors are required to submit study materials in accessible formats. ICPSR has not reviewed, checked, or processed this material. For additional information about the study, please contact the investigator(s) directly. If you have questions about the accessibility of materials distributed by ICPSR or require further assistance, please visit ICPSR's Accessibility Center.