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Knocking on Parents’ Doors: Regulation and Intergenerational Mobility

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  • Sauro Mocetti
  • Giacomo Roma
  • Enrico Rubolino

Abstract

We study the effect of regulation on intergenerational mobility exploiting the impact of two reforms occurred in Italy since the 2000s. We built an OECD-style indicator of strictness of regulation for 14 occupations and three cohorts (that is, before and after each reform) to leverage the effect of regulation among occupations and over time. We find that relaxation of regulation has affected the propensity to follow the parents’ career, which is our proxy for occupational persistence. The impact is driven by variation of anticompetitive conduct rules rather than entry requirements. Regulation distorts the career choices significantly more among less able children.

Suggested Citation

  • Sauro Mocetti & Giacomo Roma & Enrico Rubolino, 2022. "Knocking on Parents’ Doors: Regulation and Intergenerational Mobility," Journal of Human Resources, University of Wisconsin Press, vol. 57(2), pages 525-554.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:2:p:525-554
    Note: DOI: 10.3368/jhr.57.2.0219-10074R2
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    Citations

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    Cited by:

    1. Bamieh, Omar & Cintolesi, Andrea, 2021. "Intergenerational transmission in regulated professions and the role of familism," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 857-879.
    2. Mocetti, Sauro & Rizzica, Lucia & Roma, Giacomo, 2021. "Regulated occupations in Italy: Extent and labour market effects," International Review of Law and Economics, Elsevier, vol. 66(C).
    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. Raitano, Michele & Vona, Francesco, 2021. "Nepotism vs. Specific Skills: The effect of professional liberalization on returns to parental background of Italian lawyers," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 489-505.
    5. Concetta Rondinelli & Roberta Zizza, 2020. "Spend today or spend tomorrow? The role of inflation expectations in consumer behaviour," Temi di discussione (Economic working papers) 1276, Bank of Italy, Economic Research and International Relations Area.
    6. Omar Bamieh & Andrea Cintolesi & Mario Pagliero, 2024. "Estimating the returns to occupational licensing: evidence from regression discontinuities at the bar exam," Temi di discussione (Economic working papers) 1440, Bank of Italy, Economic Research and International Relations Area.
    7. Gaetano Basso & Eleonora Brandimarti & Michele Pellizzari & Giovanni Pica, 2021. "Quality and Selection in Regulated Professions," Development Working Papers 467, Centro Studi Luca d'Agliano, University of Milano.
    8. repec:hal:spmain:info:hdl:2441/6dffcvpj8t96bpc00heumik4e0 is not listed on IDEAS
    9. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
    10. Luigi Cannari & Giovanni D�Alessio, "undated". "Education, income and wealth: persistence across generations in Italy," Questioni di Economia e Finanza (Occasional Papers) 476, Bank of Italy, Economic Research and International Relations Area.
    11. Luciano Lavecchia & Carlo Stagnaro, 2019. "There ain’t no such thing as a free deed: the case of Italian notaries," European Journal of Law and Economics, Springer, vol. 47(2), pages 277-290, April.

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    More about this item

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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