Careers in finance

  • The finance wage premium since the 1990s has arguably lured talent away from other industries. However, the allocation of talent is likely to respond to differences in career paths, not in wages at a given date. We use resume data to reconstruct the careers of 11,255 professionals in finance, high-tech and services from 1980 to 2017, and find that careers mostly develop within sectors. Careers in asset management feature higher and steeper pay profiles than those of employees in banking, insurance and non-finance, yet this career premium cannot be explained by higher risk. Labor market entry responds positively to career premia in asset management and high-tech, and these sectors are regarded as substitutes by potential entrants, consistently with high-tech competing with asset management in attracting talent.

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Author:Andrew Ellul, Marco Pagano, Annalisa Scognamiglio
Parent Title (English):Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 674
Series (Serial Number):CFS working paper series (674)
Publisher:Center for Financial Studies
Place of publication:Frankfurt am Main
Document Type:Working Paper
Year of Completion:2021
Year of first Publication:2021
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2021/12/20
Tag:asset management; careers; high-tech; labor market entry; nance premium
Issue:December 2021
Page Number:43
This work was supported by the European Research Council (ERC, FINLAB project no. 295709), the Italian Ministry for University and Research (MUR) and the Einaudi Institute for Economics and Finance (EIEF).
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht