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Knocking on parents’ doors: regulation and intergenerational mobility

Author

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  • Sauro Mocetti

    (Bank of Italy)

  • Giacomo Roma

    (Bank of Italy)

  • Enrico Rubolino

    (University of Essex)

Abstract

We exploited two major reforms in the regulation of professional services implemented in Italy since the 2000s in order to examine the impact on the intergenerational transmission of occupations. We built an OECD-style indicator of strictness of regulation for 14 occupations and three different cohorts (i.e. before and after each reform). Then, using a difference-in-differences strategy, we exploited the differential effect of regulation on the occupations considered compared with employees in similar occupations, before and after each reform. We found that the progressive liberalization of professional services affected the allocation of individuals across occupations, leading to a substantial decrease in the propensity to follow the same career as one’s parents. The impact of regulation on the likelihood of being employed in the same occupation as one’s parents is greater in soft sciences and in areas where the demand for professional services is higher; at individual level, it is greater for less able individuals.

Suggested Citation

  • Sauro Mocetti & Giacomo Roma & Enrico Rubolino, 2018. "Knocking on parents’ doors: regulation and intergenerational mobility," Temi di discussione (Economic working papers) 1182, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_1182_18
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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.
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    3. 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).
    4. 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.
    5. 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.
    6. repec:hal:spmain:info:hdl:2441/6dffcvpj8t96bpc00heumik4e0 is not listed on IDEAS
    7. 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.
    8. Masuch, Klaus & Anderton, Robert & Setzer, Ralph & Benalal, Nicholai, 2018. "Structural policies in the euro area," Occasional Paper Series 210, European Central Bank.
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    10. Kumanomido, Hiroshi & Takayasu, Yutaro, 2024. "Elite Persistence in Family: The Role of Adoption in Prewar Japan," OSF Preprints rmdyp, Center for Open Science.
    11. 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.
    12. Luigi Cannari & Giovanni D’Alessio, 2018. "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.
    13. David de la Croix & Marc Goñi, 2024. "Nepotism vs. intergenerational transmission of human capital in Academia (1088–1800)," Journal of Economic Growth, Springer, vol. 29(4), pages 469-514, December.
    14. 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

    Keywords

    regulation; intergenerational mobility; occupational choice;
    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
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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