Intergenerational transmission of disadvantages in the Italian labour market

Abstract

The equity of a country is commonly assessed by examining the distribution of economic resources, access to higher education, and positions of societal influence relative to family socio-economic background. This study investigates the mechanisms perpetuating inequalities in the Italian labour market by analysing how family background influences educational attainment and subsequent labour market outcomes. Using the innovative AdSilc database, which integrates administrative and survey data on socio-economic backgrounds, we employed Generalized Path Analysis to explore complex relationships among exogenous, mediating, and endogenous variables. Incorporating the Heckman selection model addressed potential biases related to labour market participation. Additionally, we utilized generalized latent variable models for ordinal data to define family socio-economic status. Our findings underscore a pronounced intergenerational transmission of inequalities and a persistent wage gap across all cohorts analysed. Growing up in an advantaged family not only enhances educational attainment but also influences divergent labour market outcomes observed upon entry and after ten years of career progression.