Family does matter in the United States. Census data indicate that more than 20 percent of men have worked for the same employers as their fathers, while a recent New York Times article suggests that the sons of senators have a 8,500 times higher chance of becoming senators than the average American male. A large body of empirical research in economics and finance has been devoted to the study of family firms and their role in the economy. Yet little is known about the implications of widespread family ties outside family-owned firms.
In an attempt to measure how widespread family … Read more