Careers in finance

Andrew Ellul, Marco Pagano and Annalisa Scognamiglio

No 674, CFS Working Paper Series from Center for Financial Studies (CFS)

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; finance premium; asset management; labor market entry; high-tech (search for similar items in EconPapers)
JEL-codes: G20 G23 J24 J62 J63 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-hrm, nep-ias and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/248409/1/1782211640.pdf (application/pdf)

Related works:
Working Paper: Careers in Finance (2021)
Working Paper: Careers in Finance (2021)
Working Paper: Careers in Finance (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:cfswop:674

Access Statistics for this paper

More papers in CFS Working Paper Series from Center for Financial Studies (CFS) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().