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Heritability in the Labour Market: Evidence from Italian Twins

Sonia Brescianini, Lorenzo Cappellari (lorenzo.cappellari@unicatt.it) and Daniele Checchi
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Sonia Brescianini: Istituto Superiore di Sanità
Lorenzo Cappellari: LISER

No 17476, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We use administrative data on educational attainments and life-time earnings to study their correlations among Italian twins. Using the ACE decomposition, we find that heritability in education accounts to almost half of the variance, especially for younger birth cohorts. With respect to labour market outcomes, we find that only for the oldest cohorts there is a greater share of inequality that can be attributed to idiosyncratic factors compared to education, and symmetrically a lower share due to genetics, while the impact of shared environment remains stable among the youngest cohorts. We suggest that increased employment flexibility may be responsible for the decline in the environmental component. Using a larger sample of pseudo-twins (individuals sharing birth date, birth place and family name) we confirm previous results, providing evidence that heritability also drives labour market attachment and prosocial behaviour.

Keywords: heritability; inequality; labour market outcomes; Italy (search for similar items in EconPapers)
JEL-codes: D31 E21 I24 J31 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2024-11
New Economics Papers: this item is included in nep-eur and nep-lma
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