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Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/26296

Title: Skill Biased Financial Development: Education, Wages and Occupations in the U.S. Financial Sector
Authors: Philippon, Thomas
Reshef, Ariell
Issue Date: Sep-2007
Series/Report no.: FIN-07-008
Abstract: Over the past 60 years, the U.S. financial sector has grown from 2.3% to 7.7% of GDP. While the growth in the share of value added has been fairly linear, it hides a dramatic change in the composition of skills and occupations. In the early 1980s, the financial sector started paying higher wages and hiring more skilled individuals than the rest of economy. These trends reflect a shift away from low-skill jobs and towards market oriented activities within the sector. Our evidence suggests that technological and financial innovations both played a role in this transformation. We also document an increase in relative wages, controlling for education, which partly reflects an increase in unemployment risk: Finance jobs used to be safer than other jobs in the private sector, but this is not longer the case.
URI: http://hdl.handle.net/2451/26296
Appears in Collections:Finance Working Papers

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