Politics in the Family: Nepotism and the Hiring Decisions of Italian Firms

A-Tier
Journal: American Economic Journal: Applied Economics
Year: 2020
Volume: 12
Issue: 2
Pages: 67-95

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper studies the effect of family connections to politicians on individuals' labor market outcomes. Using data for Italy spanning more than three decades on a sample of almost one million individuals plus data on the universe of individuals holding political office, we show that politicians extract significant rents, in terms of private sector jobs, for their family members. We present evidence consistent with the hypothesis that this phenomenon is a form of corruption, i.e., a quid pro quo exchange between firms and politicians, although arguably an inferior substitute for easier-to-detect modes of rent appropriation on the part of politicians.

Technical Details

RePEc Handle
repec:aea:aejapp:v:12:y:2020:i:2:p:67-95
Journal Field
General
Author Count
2
Added to Database
2026-01-25