Human Capital Portability and Careers in Finance

• 成果类型: Article
• 署名作者: Gao, Janet; Wang, Wenyu; Wu, Yufeng
• 署名单位: Georgetown University; Indiana University System; IU Kelley School of Business; Indiana University Bloomington; University System of Ohio; Ohio State University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhae033
• 发表日期: 2024
• 页码: 2732
• 关键词: MATCH QUALITY; Fund size; search; mobility; wages; performance; EFFICIENCY; MARKET; skill; reallocation

摘要

How does firm-specific human capital shape careers in the finance industry? We build a dynamic model where workers accumulate portable and nonportable (firm-specific) human capital and learn about their match quality with employers. Estimating the model using granular data on M&A advisory bankers, we show that a large fraction of bankers' human capital is nonportable, ranging from 12% to 46% across different firm types. Bankers make a dynamic trade-off between portability and returns on human capital, leading to time-varying job preferences over their life cycle. Our results have broad implications for careers in finance and the provision of financial services.