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Technological Change and the Finance Wage Premium

Ata Bertay (), Jose Carreno, Harry Huizinga, Burak Uras and Nathanaël Vellekoop ()

Working Papers from University of Toronto, Department of Economics

Abstract: This paper utilizes a comprehensive worker-firm panel for the Netherlands to quantify the impact of ICT capital-skill complementarity on the finance wage premium after the Global Financial Crisis. We apply additive worker and firm fixed-effect models to account for unobserved worker- and firm-heterogeneity and show that firm fixed-effects correct for a downward bias in the estimated finance wage premium. Our results indicate a sizable finance wage premium for both fixed- and full-hourly wages. The complementarity between ICT capital spending and the share of high skill workers at the firm-level reduces the full-wage premium considerably and the fixed-wage premium almost entirely.

Keywords: finance wage premium; worker-firm panels; skill-biased technological change (search for similar items in EconPapers)
JEL-codes: G20 J24 J31 O33 (search for similar items in EconPapers)
Pages: Unknown pages
Date: 2022-10-01
New Economics Papers: this item is included in nep-fdg, nep-ict and nep-lma
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Working Paper: Technological Change and the Finance Wage Premium (2022) Downloads
Working Paper: Technological Change and the Finance Wage Premium (2022) Downloads
Working Paper: Technological change and the finance wage premium (2022) Downloads
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