We study the evolution of human capital in the U.S. financial industry over the past century.
Our analysis sheds light on how the financial sector performs its economic role, on its
interactions with the rest of the economy, and on the consequences of financial regulation.
We make three contributions. First, we document a set of new, interrelated stylized facts
about the evolution of skill intensity, wages, organization, and occupational complexity
in the financial industry. Second, we identify the forces that determine these evolutions.
We find that tighter regulations reduce the demand for skilled workers, while complex
corporate activities (IPOs, credit risk) increase the demand for skills. Finally, we analyze
the sustainability of high wages in finance, and we find that 30% to 50% of wage differentials
observed in the past 10 years can be attributed to rents, and can be expected to disappear.
I want sincerity, honesty, but you always lied to me
when 2 days ago, you told me you were married, but now you can't tell.I want sincerity, honesty, but you always lied to me
when 2 days ago, you told me you were married, but now you can't tell.I want sincerity, honesty, but you always lied to me
when 2 days ago, you told me you were married, but now you can't tell.
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