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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

    (Sapienza Università di Roma)

  • Francesco Vona

    (Observatoire français des conjonctures économiques)

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," Sciences Po publications 36, Sciences Po.
  • Handle: RePEc:spo:wpmain:info:hdl:2441/6dffcvpj8t96bpc00heumik4e0
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    Keywords

    Intergenerational inequalitiy; Social mobility; Nepotism; Specific skills; Regulations; 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
    • I2 - Health, Education, and Welfare - - Education

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