1. The Growth of Finance is Not Remarkable.
- Author
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Brown, James R., Martinsson, Gustav, and Petersen, Bruce C.
- Subjects
FINANCE ,SKILLED labor ,FINANCIAL services industry ,POST-World War II Period ,ECONOMIC sectors ,JOB skills ,UNITED States economy ,FULL-time equivalency - Abstract
An important literature emphasizes that finance grew rapidly after WWII relative to the full economy and the services sector, but these are poor benchmarks because they mask a broad structural shift from low- to high-skill services. We show that i) finance is among the most skill-intensive service industries, ii) the evolution of the finance income share closely tracks other high-skill service industries, and iii) finance grew much slower than the rest of high-skill services in the post-WWII period. The rise of modern finance is not as remarkable as prior research suggests, providing context for debates about the size of finance. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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