Technological change and the finance wage premium

Ata Bertay, José Carreño, Harry Huizinga, Burak Uras and Nathanaël Vellekoop

No 361, SAFE Working Paper Series from Leibniz Institute for Financial Research SAFE

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)
Date: 2022
New Economics Papers: this item is included in nep-ict, nep-lma and nep-tid
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Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/266141/1/1820478114.pdf (application/pdf)

Related works:
Working Paper: Technological Change and the Finance Wage Premium (2022)
Working Paper: Technological Change and the Finance Wage Premium (2022)
Working Paper: Technological Change and the Finance Wage Premium (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:safewp:361

DOI: 10.2139/ssrn.4260797

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