Sometimes an interesting paper doesn’t do much more than provide empirical confirmation of what basic theory would predict. For example, Thomas Philippon and Ariell Reshef have a paper ( PDF ) illustrating the point that the relative wage in the financial sector tends to track the relative education level of the personnel: We use detailed information about wages, education and occupations to shed light on the evolution of the U.S. financial sector over the past century. We uncover a s
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