File this in the “Oh, now you tell me” file, but a study of excess wages in the financial sector over the last 100 years is interesting stuff. The money graph (ahem) is the following one:
Gosh, that doesn’t look like trouble at all. I can’t see any reason why we had such a misallocation of talent to financial services over the last 25 years.
Source: Wages and Human Capital in the U.S. Financial Industry: 1909-2006. Thomas Philippon† Ariell Reshef