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Dynasties in professions: the role of rents

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  • Sauro Mocetti

    (Bank of Italy)

Abstract

The correlation between the socio-economic status of parents and their offspring has emerged as one of the stylized facts in economics, though cross-country and cross-occupation variation is remarkable. However, part of the underlying mechanism behind intergenerational persistence remains to be explained. This paper contributes to the existing literature by providing evidence on the role of rents � (unfair) economic benefits that individuals obtain as adults because of their parents� professional position. Several identification strategies, including the exploitation of discontinuities in regulation, suggest that rents significantly affect children�s propensity to follow their parents� professional career paths. From a policy perspective, the removal of anti-competitive regulation and other positional advantages may increase both social fluidity and labor market efficiency.

Suggested Citation

  • Sauro Mocetti, 2014. "Dynasties in professions: the role of rents," Temi di discussione (Economic working papers) 995, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_995_14
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    References listed on IDEAS

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    Cited by:

    1. Emanuele Ciani & Francesco David & Guido de Blasio, 2017. "Local labour market heterogeneity in Italy: estimates and simulations using responses to labour demand shocks," Temi di discussione (Economic working papers) 1112, Bank of Italy, Economic Research and International Relations Area.
    2. 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.

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    More about this item

    Keywords

    intergenerational mobility; professions; regulation; rents;
    All these keywords.

    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

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