Compensation and Competition for Talent: Evidence from the Financial Industry
Posted: 6 Jan 2015
Date Written: January 5, 2015
We show that long-term compensation is associated with higher pay in the financial industry and this association is stronger in markets with high competition for talent. We argue that this evidence supports models of competition for talent based on retention motives.
Keywords: Competition for talent; Retention; Optimal contracts; Finance labor market
JEL Classification: G34, J31, J33, J41, J44, M52
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