Hey #EconTwitter! I am beyond excited to share my JMP
🚨 "Following in the family footsteps: Incidence and returns of occupational persistence" 🚨
Do children gain from following their parents in the same occupations?👨👩👧
Here is a short thread to find out!🧵
🚨 "Following in the family footsteps: Incidence and returns of occupational persistence" 🚨
Do children gain from following their parents in the same occupations?👨👩👧
Here is a short thread to find out!🧵
I study the labour market returns from following parents into the same occupations. I focus on medical doctors👩⚕️ in the Netherlands🇳🇱 and exploit rich admin data and the random variation provided by lottery admissions to medical school.
I compare causally estimated returns of being a doctor for children of doctors and children of non doctors to identify the additional income gains/losses experienced by dynastic doctors📈.
Do dynastic doctors gain from having a parent in the same profession?
Yes, a lot! Their income returns from medical school are 54% higher⬆️ than for other doctors.
Yes, a lot! Their income returns from medical school are 54% higher⬆️ than for other doctors.
These returns translate into a 23% increase⬆️ in income (15-20 years from application) with respect to the 'non persistent' population, but build up over time.
The substantial gains also come with large negative selection bias⬇️. In other words, people selecting into following their parents perform worse than their peers when they are pushed into different occupations.
I also document population wide patterns of occupational transmission, and find that it is strikingly prevalent among individuals from the highest income backgrounds.
Together with the large gains identified above, this suggests an important role of occupational transmission in hampering social mobility!
You can also find my other research and work in progress on my website mariaven.com
Last but not least, I am extremely grateful to my supervisors @landais_camille, Johannes Spinnewijn and @s_machin_ for their continuous support and guidance, as well as to my PhD colleagues and other LSE faculty members for their comments and feedback!
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