Abstract
We document three stylized facts regarding employment in financial services: (a) the share of science, technology, engineering, and math (STEM) workers grew by 30% between 2011 and 2017; (b) while the earnings premium of working in finance has grown, the STEM premium in finance has declined since 2011; and (c) regulatory restrictions in the financial services have grown faster than other sectors. We investigate three economic mechanisms underlying the employment patterns: (a) capital-skill complementarity, (b) relabeling of non-STEM into STEM degree programs, and (c) regulation. We show that only the rise in regulation can explain these joint dynamics.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
