The culture that is Italy

The new (old) labor market idea — you can call it fifth best perhaps — is hereditary jobs:

It is a problem many a company faces in these tough times: how to
replace older – and costlier – workers with younger, cheaper ones.

Rome bank has what it thinks is the solution: to make the jobs
hereditary. Under a deal signed with unions this week, 76 employees of
Banca di Credito Cooperativo di Roma (BCC di Roma) must take early
retirement but they will get a choice: either take a payoff or leave
your job to your son or daughter (or indeed any relative "up to the
third degree", which would allow the post to be left even to
great-nieces and nephews).

The full story is here and I thank The Browser for the pointer.


This is what happens in a number of businesses. Lawfirms hire the sons of the senior partner; doctors sponsor their children into medical school and bring them into the practice. It also happens in government: look at how many last names are the same in fire and police departments, parks and rec, and libraries.

But, also consider those who are left out in this type of succession program. Any guess?

Reminds me of the specialist system at the NYSE. Or people like the Waltons.

What would be the advantage of insisting that the retiree's chosen successor be a relative, rather than allowing that person any choice of successor?

hereditary jobs

Isn't that a REALLY old idea, and contemporary example with the largest number of people still participating the caste system in India?

We could even implement it for jobs which people are currently elected to.

We've already seen that. And thank goodness, most "family firms" in politics die out after a few generations. Think of all the distinguished leaders we've had lately. E.g., Kennedy, Bush, etc.

But Ernesto Dal Bó, Pedro Dal Bó, Jason Snyder concluded in "Political Dynasties" that "dynastic political power is self-perpetuating in that a positive exogenous shock to a person's political power has persistent effects through posterior dynastic attainment. In politics, power begets power."


For example I think that a US post office letter carrier job would go for well over $100,000.

Maybe a few years ago, probably not today.

Feudalism! Luckily, it contains within it the seeds of its own revolution. One day we'll get back to capitalism... .

this is really going to screw up all the heredity / IQ / income stratification studies.

Hereditary privilege is a terrible thing, especially when the lower and middle classes try to horn in on the deal.

Property owners should be free to destroy their property value and then it gets passed on to more competent hands.

When jobs are treated like property, the same story applies. The jobs will move to more competent hands eventually. It's just a matter of whether you enjoy the mean time, which probably has a lot to do with whether or not you are in line for one of the jobs.

Maybe some day we'll be teaching Mexican kids Spanish here in the USA.

We have seen this also when the wife of a slain or disabled man takes over his office. Who better to fill his shoes than the one who has listened to him complain about his rotten day every evening? Whether it's running a business or running a country, the spouse has probably been providing the vision and leadership all those years anyway. And what a fantastic solution to the problem of teenage delinquency: Make everyday a Take Your Kid to Work Day as a sort of apprenticeship program, since daycare is expensive and school is a waste of time. Instead of learning to grow bush beans or cobble shoes, these days little Bobby Jr. can learn how to bundle securities or evict jobless mortgage-holders with his mom. This would be great, except for the inevitable institutionalization of mediocrity.

And for the orphans, and the unemployed? They, uh, they can eat cake.

The firm must have some kind of extreme monopoly power because that is an AWFUL tactic for running a successful business.

this is really a brillant idea on the bank's part because they realize that hardly anyone in Italy is having children (fertility rate, 1.3 per couple, or way below replacement) so that the odds that an early retiree will actually have a child to pass a job on to is low and getting lower all the time...

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