Technological change and the finance wage premium

Ata Can Bertay, Jose Gabo Carreno, Harry Huizinga, Burak Uras, Nathanael Vellekoop

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.

MoreLess

Year of publication:	[2022]
Authors:	Bertay, Ata Can ; Carreño, José ; Huizinga, Harry ; Uras, Burak ; Vellekoop, Nathanael
Publisher:	[Frankfurt am Main] : Leibniz Institute for Financial Research SAFE, Sustainable Architecture for Finance in Europe
Subject:	finance wage premium \| worker-firm panels \| skill-biased technological change \| Technischer Fortschritt \| Technological change \| Lohnstruktur \| Wage structure \| Qualifikation \| Occupational qualification \| Schätzung \| Estimation \| Lohn \| Wages

Extent:	1 Online-Ressource (circa 52 Seiten) Illustrationen
Series:	SAFE working paper. - Frankfurt am Main : SAFE, ZDB-ID 2745463-0. - Vol. no. 361 (October 2022)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/266141 [Handle]
Classification:	G20 - Financial Institutions and Services. General ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc ; O33 - Technological Change: Choices and Consequences; Diffusion Processes
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013415450