Do you owe your income to your parents?

11 March 2010

1 minute read

Assuming you're working in financial services already, to what extent do you owe your position to the ministrations of your parents?

It's a question worth asking given yet another study study illustrating the extent to which incomes in the UK are influenced by parental income.

According to the OECD, fathers' earnings have a stronger influence on sons' earnings in the UK than anywhere else in the OECD.

OECD study

Some of the difference is attributable to education: sons whose fathers had a tertiary education are much more likely to be similarly educated themselves. The 'socio-economic' school environment is also a factor.

However, the UK ranks only 9th for parents' influence on achievements in secondary education, and only 8th for parents' influence on tertiary education.

Could it be that something more fundamental is having an effect on intergenerational earnings transmission? Nepotism maybe?

As we noted last year, despite most banks' claims to meritocratic, a high proportion of UK bankers appear to be privately educated. And in our recent poll 53% of 700 voters said they thought parental connections were 'everything' when it came to getting into banking. Another 33% said they 'really helped.'

AUTHORSarah Butcher

Global Editor

be
beta_adjusted
12 March 2010
If you don't know the right people ... get to know them! for those with drive and initiative its not that much of a barrier to entry. Trouble is that most people want to be accepted for 'who they are'; if you really want to succeed get over yourself and get down to the golf/tennis club, dancing, take up politics. Whatever it takes.
Success in one's career usually down to networking which is not so different from 'Nepotism'; I think MBA's etc. actually undermine this: like every course, some people are good, some people are bad and some of the bad people get jobs; networkers are much more likely to be good for your business but they may not have an MBA and at 40k its out of the reach of many (especially after the cost of a degree which can leave 30k+ of debts). People with real initiative might spend that 40k on networking to better effect and can acquire the MBA BS skills for a much lower cost elsewhere. If you want ppl with 'street smarts' then get networkers. If you want people who are 'smart' hire maths/physics phds! Why hire MBAS? :p
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AN
A N Alyst
11 March 2010
No surprise here. The UK isn't meritocratic and never has been.
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un
unemployed
11 March 2010
My father worked for lehmans, so yes
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Ja
James
11 March 2010
This is a really sad sitatuion and no doubt music to the ears of those who like to complain about us bankers. On principle I would not employ someone just because their parents asked me to....Make your own way
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