The US Finance Wage Premium Before and After the Financial Crisis: A Decomposition Exercise

Stella Capuano; Tat-kei Lai; Hans-Jörg Schmerer

doi:10.1080/13504851.2014.914134

The US Finance Wage Premium Before and After the Financial Crisis: A Decomposition Exercise

Stella Capuano, Tat-kei Lai, Hans-Jörg Schmerer

Økonomisk Institut

Institute for Employment Research (IAB)

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › peer review

Abstract

Does the recent financial crisis change the wage structures of the US finance and nonfinance sectors? In this article, we study the wage gap between workers in these two sectors between 1990 and 2011. Using data from the Current Population Survey, we find that the finance wage premium increased over time and only dropped modestly during the crisis. Using the Oaxaca–Blinder method to decompose the wage gap into ‘explained’ and ‘unexplained’ parts, we also find that the wage gap was entirely driven by unexplained factors.

Originalsprog	Engelsk
Tidsskrift	Applied Economics Letters
Vol/bind	21
Udgave nummer	16
Sider (fra-til)	1144-1147
ISSN	1350-4851
DOI	https://doi.org/10.1080/13504851.2014.914134
Status	Udgivet - 2014

Emneord

Decomposition
Finance wage premium
Financial crisis

Adgang til dokumentet

10.1080/13504851.2014.914134Licens: Ikke-specificeret

Handle.net

Persistent link

Citationsformater

@article{3828ea781e3d42ff9efd32af7c2b043f,

title = "The US Finance Wage Premium Before and After the Financial Crisis: A Decomposition Exercise",

abstract = "Does the recent financial crisis change the wage structures of the US finance and nonfinance sectors? In this article, we study the wage gap between workers in these two sectors between 1990 and 2011. Using data from the Current Population Survey, we find that the finance wage premium increased over time and only dropped modestly during the crisis. Using the Oaxaca–Blinder method to decompose the wage gap into {\textquoteleft}explained{\textquoteright} and {\textquoteleft}unexplained{\textquoteright} parts, we also find that the wage gap was entirely driven by unexplained factors.",

keywords = "Decomposition, Finance wage premium, Financial crisis",

author = "Stella Capuano and Tat-kei Lai and Hans-J{\"o}rg Schmerer",

year = "2014",

doi = "10.1080/13504851.2014.914134",

language = "English",

volume = "21",

pages = "1144--1147",

journal = "Applied Economics Letters",

issn = "1350-4851",

publisher = "Routledge",

number = "16",

}

TY - JOUR

T1 - The US Finance Wage Premium Before and After the Financial Crisis

T2 - A Decomposition Exercise

AU - Capuano, Stella

AU - Lai, Tat-kei

AU - Schmerer, Hans-Jörg

PY - 2014

Y1 - 2014

N2 - Does the recent financial crisis change the wage structures of the US finance and nonfinance sectors? In this article, we study the wage gap between workers in these two sectors between 1990 and 2011. Using data from the Current Population Survey, we find that the finance wage premium increased over time and only dropped modestly during the crisis. Using the Oaxaca–Blinder method to decompose the wage gap into ‘explained’ and ‘unexplained’ parts, we also find that the wage gap was entirely driven by unexplained factors.

AB - Does the recent financial crisis change the wage structures of the US finance and nonfinance sectors? In this article, we study the wage gap between workers in these two sectors between 1990 and 2011. Using data from the Current Population Survey, we find that the finance wage premium increased over time and only dropped modestly during the crisis. Using the Oaxaca–Blinder method to decompose the wage gap into ‘explained’ and ‘unexplained’ parts, we also find that the wage gap was entirely driven by unexplained factors.

KW - Decomposition

KW - Finance wage premium

KW - Financial crisis

U2 - 10.1080/13504851.2014.914134

DO - 10.1080/13504851.2014.914134

M3 - Journal article

SN - 1350-4851

VL - 21

SP - 1144

EP - 1147

JO - Applied Economics Letters

JF - Applied Economics Letters

IS - 16

ER -