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Le capital humainet les incitations sont-ils les deux mamelles des salaires dans la finance ?

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  • Olivier Godechot

Abstract

Thanks to an original wage dataset (1997-2000) from a major bank in Paris, we show the importance of human capital in the financial sector, both in terms of quantity and price. However, a careful examination of the data shows significant anomalies compared to the human capital model: at given levels of human capital, wages vary widely by profession. Are these differences due to reasons of incentives and compensation for risk aversion? We show also that the principal-agent theory does not adequately account for unequal pay. Occupations where bonus expectancy is the highest are also jobs where fixed wages are the highest. There is no trade-off between these two components of pay. While human capital and incentives can contribute to wage levels, they fail to account fully for the latter and reveal rents relating to the occupation of key positions. Classification JEL: G34, J31, J33.

Suggested Citation

  • Olivier Godechot, 2011. "Le capital humainet les incitations sont-ils les deux mamelles des salaires dans la finance ?," Revue d'économie financière, Association d'économie financière, vol. 0(4), pages 145-164.
    • Handle: RePEc:cai:refaef:ecofi_104_0145
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    Cited by:

    1. Olivier Godechot, 2019. "Conclusion: What finance manufactures," Sciences Po publications info:hdl:2441/4ff88coju39, Sciences Po.
    2. Olivier Godechot, 2011. "Finance and the rise in inequalities in France," Working Papers halshs-00584881, HAL.
    3. Lenglet, Marc & Riva, Angelo, 2013. "Les conséquences inattendues de la régulation financière : pourquoi les algorithmes génèrent-ils de nouveaux risques sur les marchés financiers ?," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 14.
    4. repec:hal:spmain:info:hdl:2441/4ff88coju39nk8b11b5ghfc1ff is not listed on IDEAS
    5. Olivier Godechot, 2019. "Conclusion: What finance manufactures," SciencePo Working papers Main hal-03393812, HAL.

    More about this item

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

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