Dynasties in professions and the role of rents and regulation: Evidence from Italian pharmacies

• 成果类型: Article
• 署名作者: Mocetti, Sauro
• 署名单位: European Central Bank; Bank of Italy
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2015.11.001
• 发表日期: 2016
• 页码: 1-10
• 关键词: intergenerational mobility; Professions; regulation; rents; regression discontinuity design

摘要

This paper provides causal evidence concerning the role of rents in explaining dynasties in professions. It focuses on the Italian pharmacist labor market, and exploits discontinuities (established by law) in the relationship between the number of pharmacies that should serve a city and the population. Using a regression discontinuity design, it shows that a reduction in rent, proxied by the pharmacy-to-population ratio, has a significant and negative impact on the propensity of pharmacists' children to follow their parents' career. In contrast, pharmacy rents do not affect the career choices of non-pharmacists' children, who face higher entry barriers (i.e. they do not inherit the family business). Further evidence shows that rents and lower exposure to competition are associated with stronger family ties also among other professions and within firms. (C) 2015 Elsevier B.V. All rights reserved.