Who’s Your Daddy? Intergenerational Mobility in the U.S. Financial Industry

21 Pages Posted: 16 Sep 2020

See all articles by Henrik Schürmann

Henrik Schürmann

BUW - Schumpeter School of Business and Economics

Date Written: August 4, 2020

Abstract

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

Suggested Citation

Schürmann, Henrik, Who’s Your Daddy? Intergenerational Mobility in the U.S. Financial Industry (August 4, 2020). Available at SSRN: https://ssrn.com/abstract=3666821 or http://dx.doi.org/10.2139/ssrn.3666821

Henrik Schürmann (Contact Author)

BUW - Schumpeter School of Business and Economics ( email )

Gaußstraße 20
Wuppertal, 42119
Germany

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