Who’s Your Daddy? Intergenerational Mobility in the U.S. Financial Industry
21 Pages Posted: 16 Sep 2020
Date Written: August 4, 2020
This paper investigates the intergenerational mobility with regard to people’s decision to work in the U.S. financial industry over the last 47 years. I present evidence that children of fathers who worked in the financial industry during their childhood are about 8 percentage points more likely to work in finance themselves. This increase in likelihood is greater than in most other industries and is driven solely by wealthier families. In addition, I document that second-generation finance industry employees whose fathers already worked in finance enjoy a substantial income surplus compared to their industry peers.
Keywords: Financial industry, Intergenerational mobility, Informal networks, Nepotism
JEL Classification: G20, J24, J30, J62, L14
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