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Title: Greed is Good? Implications on Earnings and Education from U.S Financial Industry 1962 - 2008

Citation Type: Miscellaneous

Publication Year: 2009

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Abstract: This paper examines the earnings and education levels of individuals in financial industry from1962 to 2008 and as a whole. I have further divided the financial industry into two categories:value-adding and rent-seeking according to their job functions. IMPUS-CPS data is employed toconduct both cross-sectional and longitudinal studies. Results have shown that financial industry,particularly the rent-seeking sector is better paid and better educated. In addition, the valueaddingsector has limited effect on improving the productivity of the entire economy while therent-seeking sector is largely depending on the value-adding sector. The conclusion is that therent-seeking sector is overpaid and should be taxed accordingly. The value-adding sector needsfurther study on the weights of its two opposite impacts.

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Authors: Gao, Yuanzhi

Publisher: Tufts University

Data Collections: IPUMS CPS

Topics: Education, Other

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