education is a liability

February 9, 2009
Education versus wages in finance

Education versus wages in finance

This very interesting graph is taken from this paper, which exhibits the path of wages and the level of education in the financial sector.

It is often quoted that this sector has been recently draining the most qualified university leavers, lured by the exceptionally high salaries. It appears, though, that this is not a new phenomenon, and that we are not far from the levels experienced in the 1930s.

And we all know what happened in the 1930s… Can I therefore conjecture that severe endogenous financial crises are positively correlated with the education level of the financial industry?

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