Abstract
The attractiveness of public sector jobs in Italy may induce parents working in this sector to use their positions and the network of relationships to favor their sons/daughters in gaining access to public sector jobs. We verify whether children of public employees effectively enjoy an advantage, estimating a model of the probability of working in the public sector controlling for individual characteristics and labor market conditions. We show that if the father is a public employee the probability of his child working in the same sector is increased by a huge 44%. This advantage is larger for low-ability individuals, “stayers” and Southern Italian residents. We interpret these findings as evidence of nepotism in public employment.
Similar content being viewed by others
References
Alesina, A., Baqir, R., & Easterly, W. (2000). Redistributive public employment. Journal of Urban Economics, 48, 219–241.
Alesina, A., Danninger, S., & Rostagno, M. (2001). Redistribution through public employment: the case of Italy. IMF Staff Papers, 48(3), 447–473.
Algan, Y., Cahuc, P., & Zylberberg, A. (2002). Public employment and labour market performance. Economic Policy, 17(34), 7–66.
Banfield, E. (1958). The moral basis of a backward society. New York: Free Press.
Becker, G., & Tomes, N. (1986). Human capital and the rise and fall of families. Journal of Labor Economics, 4(3), S1–S39.
Bellante, D., & Link, A. (1981). Are public sector workers more risk averse than private sector workers? Industrial and Labor Relations Review, 34(3), 408–412.
Bertrand, M., & Schoar, A. (2006). The role of family in family firms. Journal of Economic Perspectives, 2, 73–96.
Blanchflower, D. (1996). The role and influence of trade unions in the OECD. Dartmouth College, Mimeo.
Blank, R. (1985). An analysis of workers’ choice between employment in the public and private sectors. Industrial and Labor Relations Review, 38, 211–224.
Bowles, S., Gintis, H., & Osborne Groves, M. (Eds.) (2005). Unequal chances: family background and economic success. Princeton: Princeton University Press.
Brandolini, A., & Cannari, L. (1994). Methodological appendix: the bank of Italy’s survey of household income and wealth. In A. Ando, L. Guiso, & I. Visco (Eds.), Saving and the accumulation of wealth: essays on Italian household and government saving behavior (pp. 369–386). Cambridge: Cambridge University Press.
Burkart, M., Panunzi, F., & Shleifer, A. (2003). Family firms. Journal of Finance, 58(5), 2167–2201.
Carmichael, F. (2000). Intergenerational mobility and occupational status in Britain. Applied Economics Letters, 7, 391–396.
Caselli, F., & Gennaioli, N. (2006). Dynastic management. CEP Discussion Paper, 741, London.
Checchi, D., Ichino, A., & Rustichini, A. (1999). More equal but less mobile? Education financing and intergenerational mobility in Italy and in the US. Journal of public economics, 74(3), 551–593.
Chevalier, A. (2002). Just like daddy: the occupational choice of UK graduates. Dublin: WP University College Dublin.
Clark, O., & Postel-Vinay, F. (2003). Job security and job protection. CEPR Discussion Paper, No. 4927.
Dixit, A. (2002). Incentives and organizations in the public sector: an interpretative review. Journal of Human Resources, 4, 696–727.
Ghinetti, P. (2007). The public–private job satisfaction differential in Italy. Labour, 21(2), 361–388.
Golden, M. (2003). Electoral connections: the effects of the personal vote on political patronage, bureaucracy and legislation in postwar Italy. British Journal of Political Science, 33, 189–212.
Gregory, R., & Borland, J. (1999). Recent developments in public sector labor markets. In O. Ashenfelter & D. Card (Eds.), Handbook of Labor Economics Vol. 3C. Amsterdam: Elsevier.
Groothuis, P., & Groothuis, J. (2008). Nepotism or family tradition? A study of NASCAR drivers. Journal of Sports Economics, 9(3), 250–265.
Guiso, L., Sapienza, P., & Zingales, L. (2004). The role of social capital in financial development. American Economic Review, 94(3), 526–556.
Ichino, A., & Maggi, G. (2000). Work environment and individual background: explaining regional shirking differentials in a large Italian firm. Quarterly Journal of Economics, 115(3), 1057–90.
Krueger, A. (1988). The determinants of queues for federal jobs. Industrial and Labor Relations Review, 41(4), 567–581.
Laband, D., & Lentz, B. (1983). Like father, like son: toward an economic theory of occupational following. Southern Economic Journal, 50, 474–493.
Laband, D., & Lentz, B. (1985). The roots of success: why children follow in their parents’ occupational footsteps. New York: Praeger.
Laband, D., & Lentz, B. (1992). Self-recruitment in the legal profession. Journal of Labor Economics, 10(2), 182–201.
Lentz, B., & Laband, D. (1989). Why so many children of doctors become doctors: nepotism vs. human capital transfers. Journal of Human Resources, 3, 396–413.
Long, J. (1982). Are government workers overpaid? Alternative evidence. Journal of Human Resources, 17, 123–131.
Panizza, U. (2002). The strange case of the public sector wage premium. Public Finance and Management, 2(3), 334–355.
Perez-Gonzalez, F. (2006). Inherited control and firm performance. American Economic Review, 96(5), 1559–1588.
Ponzo, M. (2009). On-the-job search in Italian labour markets: an empirical analysis. Rende: Università della Calabria, WP Dipartimento di Economia e Statistica.
Prendergast, C., & Topel, R. (1996). Favoritism in organization. Journal of Political Economy, 104(5), 958–978.
Putnam, R. (1993). Making democracy work: civic traditions in modern Italy. Princeton: Princeton University Press.
Robinson, D. (1991). Employment, labour relations and pay in the public sector: an overview. In W. van Ginneken (Ed.), Government and its Employees. Aldershot: Avebury.
Shleifer, A., & Vishny, R. W. (1994). Politicians and firms. Quarterly Journal of Economics, 109, 995–1026.
Solon, G. (2002). Cross-country differences in intergenerational earnings mobility. Journal of Economic Perspectives, 3, 59–66.
Tirole, J. (1994). The internal organization of government. Oxford Economic Papers, 46(1), 1–29.
Venti, S. (1987). Wages in the federal and private sectors. In D. Wise (Ed.), Public sector payrolls. Chicago: University of Chicago Press.
Wooldridge, J. (2002). Econometric analysis of cross section and panel data. Cambridge: MIT Press.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Scoppa, V. Intergenerational transfers of public sector jobs: a shred of evidence on nepotism. Public Choice 141, 167–188 (2009). https://doi.org/10.1007/s11127-009-9444-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11127-009-9444-9