 Dynasties in professions and the role of rents and regulation: Evidence from Italian pharmaciesJournal of Public Economics, 2016, vol. 133, issue C, 1-10 Abstract: 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. Keywords: Intergenerational mobility; Professions; Regulation; Rents; Regression discontinuity design (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:133:y:2016:i:c:p:1-10 DOI: 10.1016/j.jpubeco.2015.11.001 Access Statistics for this article Journal of Public Economics is currently edited by R. Boadway and J. Poterba More articles in Journal of Public Economics from Elsevier |
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