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Nepotism vs specific skills : the effect of professional liberalization on returns to parental back grounds of italian lawyers

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  • Michele Raitano

    (UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Francesco Vona

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

We study the mechanisms of intergenerational inequality among Italian lawyers over the period 1994- 2014 using a longitudinal dataset that combines administrative and survey data. We first estimate a 17.5% earnings premium for a law family background within the group of lawyers, so conditional on entering the profession. We then exploit the 2003-2006 liberalization process, which asymmetrically affected the two main transmission mechanisms: skill transfer and nepotism. We find that liberalization squeezed the law background return by at least 3/5, thus revealing a high incidence of nepotism. The bulk of the reduction occurred for the youngest lawyers and the top earners. KEY

Suggested Citation

  • Michele Raitano & Francesco Vona, 2018. "Nepotism vs specific skills : the effect of professional liberalization on returns to parental back grounds of italian lawyers," Working Papers hal-03458042, HAL.
    • Handle: RePEc:hal:wpaper:hal-03458042
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03458042
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    Cited by:

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    3. de la Croix, David & Goñi, Marc, 2020. "Nepotism vs. Intergenerational Transmission of Human Capital in Academia (1088--1800)," CEPR Discussion Papers 15159, C.E.P.R. Discussion Papers.
    4. Maurizio Franzini & Fabrizio Patriarca & Michele Raitano, 2020. "Market competition and parental background wage premium: the role of human and relational capital," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 291-317, September.
    5. Giuseppe Rose & Francesco Mazzulla, 2023. "Relaxing Occupational Licensing In Italy: A Staggered Difference In Differences Analysis Using Balance-Sheet Data Of Italian Pharmacies," Working Papers 202302, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.

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    More about this item

    Keywords

    Intergenerational inequalitiy; Social mobility; Nepotism; Specific skills; Regulations; Regulation; Top occupations;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • I2 - Health, Education, and Welfare - - Education

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