Compensation in the Financial Sector: Are all Bankers Superstars?

C. C l rier
Authors registered in the RePEc Author Service: Claire Celerier

Working papers from Banque de France

Abstract: Based on a survey among French engineers, I find that employees in the financial sector are highly paid. I also find large pay differences within the sector and that a large share of compensation is variable. I consider three potential models accounting for these facts: a model of superstars (Rosen, 1981), a model of compensating wage differential (Lucas, 1977), and a model of moral hazard (Laffont and Martimort, 2002). I investigate and test the empirical implications of these models. I conclude that the model of superstars fits better the data than the models of moral hazard and compensating wage differential.

Keywords: Finance, compensation; wage distribution; wage structure; incentives, superstars (search for similar items in EconPapers)
JEL-codes: G2 G24 J3 J31 M5 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2010
New Economics Papers: this item is included in nep-lab
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Persistent link: https://EconPapers.repec.org/RePEc:bfr:banfra:294

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