Careers in Finance

Andrew Ellul, Marco Pagano and Annalisa Scognamiglio

No 14767, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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.

Keywords: Careers; Hedge funds; Asset managers; Market discipline; Scarring effects (search for similar items in EconPapers)
JEL-codes: G20 G23 J24 J62 J63 (search for similar items in EconPapers)
Date: 2020-05
New Economics Papers: this item is included in nep-hrm, nep-ias and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Careers in Finance (2021)
Working Paper: Careers in Finance (2021)
Working Paper: Careers in finance (2021)
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