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

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  • Michel Raitano
  • Francesco Vona

    (OFCE, Sciences Po, Paris, France)

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

Suggested Citation

  • Michel Raitano & Francesco Vona, 2018. "Nepotism vs specific skills: the effect of professional liberalization on returns to parental back ground of Italian lawyers," Documents de Travail de l'OFCE 2018-36, Observatoire Francais des Conjonctures Economiques (OFCE).
    • Handle: RePEc:fce:doctra:1836
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    More about this item

    Keywords

    intergenerational inequality; social mobility; nepotism; specific skills; regulation; top occupations;

    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
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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