Study Shows How Nepotism Can Enhance Career Earnings

Lawyers, doctors, and engineers who follow in their parents’ educational footsteps earn more than their peers, according to a new study from the University of Copenhagen. While this might seem like nepotism or favoritism, the reality is likely more complex.

“Nepo baby” is the unflattering term for children who enter the same profession as their parents, benefiting from their parents’ connections and reputation. These children often get a head start in careers where success isn’t just about ability and talent.

Following in footsteps

In the world of culture and media, “nepo babies” are a hot topic. But in a broader sense, does having the same education as one’s parents offer an advantage? And if so, why?

The study tracks the income of 40-year-olds who followed their parents’ educational paths, comparing them to those who didn’t. The research examines the income benefits of having a degree in the same field as one’s parents, using data from 139,000 Danes born between 1960 and 1979. All participants attended academic upper secondary education and earned at least a bachelor’s degree, like their parents.

The study also compares siblings who chose the same education as their parents with those who didn’t, to rule out family-specific reasons for income differences—such as more resources or stronger family bonds.

Financial gains

The analysis shows a small financial benefit for those with the same higher education as their parents. However, the advantage varies by field.

“The link is clearest in medicine, law, and to some extent, engineering. Doctors and lawyers earn 5%-10% more on average if at least one parent has a degree in the same field,” the author explains. “But this effect is only seen in a few professions. For many public sector workers, like nurses and teachers, regulated salaries mean no effect.”

These differences mean that overall, following in one’s parents’ footsteps results in only a 2% income increase. Still, the study adds nuance to the idea that social background becomes less important once a person earns a bachelor’s degree.

Specific advantages

So, why do children of doctors, lawyers, and engineers benefit financially from having the same education as their parents?

The evidence points to a specific factor, especially for doctors and lawyers. “Many doctors and lawyers earn income from self-employment, such as private practices,” the author says. “The income differences mainly come from this source.”

Children who follow their parents into these professions are more likely to be successfully self-employed. They seem to achieve this without direct help from their parents. The study finds no evidence of special privileges or nepotism: these children rarely take over their parents’ businesses or work for companies where their parents’ connections hold senior positions.

“The study rules out some common nepotism mechanisms, like using parents’ social networks to get a job,” the author notes.

While the study can’t address nepotism in specific niches like the cultural and media world, it highlights that children generally gain some skills from their upbringing. This “human and cultural capital” helps them later in life.

“They might have absorbed an entrepreneurial spirit or learned to thrive in certain professional environments. They might also have developed specific skills growing up,” the author concludes. “For instance, the children of engineers might have played more with technical toys. The study can’t pinpoint the exact mechanisms, but it suggests there’s more at play than just nepotism.”

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