Title page
Contents
Abstract 2
1. Data 10
1.1. Data sources 10
1.2. Baseline sample construction 11
1.3. Defining key variables 12
1.4. Summary statistics 14
2. Firm Relative Size and Worker Earnings 15
2.1. Baseline analysis 16
2.2. Alternative measures of worker earnings 18
2.3. Cross-period heterogeneity 19
2.4. Within-finance heterogeneity 20
3. Mechanisms 22
3.1. Firm relative size and financial performance 23
3.2. Skills and bargaining power of financial workers 28
4. Firm Relative Size and Within-Firm Inequality 33
5. Alternative Explanations 35
6. Conclusion 38
References 40
Appendix A. Variable Definitions 60
Appendix B. Additional Graphs and Tables 64
Table 1. LEHD sample coverage 52
Table 2. Summary statistics: Finance versus nonfinance 53
Table 3. Firm relative size and average quarterly earnings 54
Table 4. Robustness: Firm relative size and different measures of worker earnings 55
Table 5. Firm relative size and financial outcomes 56
Table 6. Firm relative size and within-firm inequality 57
Table 7. Firm relative size in local market and earnings 58
Table 8. Firm relative size and earnings: Tradable versus nontradable sectors 59
Figure 1. Firm relative size and worker earnings: Finance versus nonfinance 44
Figure 2. Firm relative size and worker earnings: Cross-period heterogeneity 45
Figure 3. Firm relative size and worker earnings: Subsector heterogeneity 46
Figure 4. Firm relative size and financial outcomes: Cross-period heterogeneity 47
Figure 5. Firm relative size and financial outcomes: Subsector heterogeneity 48
Figure 6. Worker fixed effects: Finance subsectors versus high-tech 49
Figure 7. Occupational task intensities: Finance versus nonfinance 50
Figure 8. Occupational task intensities: Finance subsectors versus high-tech 51
Table B1. Summary statistics: Finance versus high-tech 65
Table B2. Summary statistics: Publicly listed firms 66
Table B3. Task scores and worker earnings 67
Table B4. Firm relative size and capital investment 68
Table B5. Summary statistics: Local market level 69
Table B6. Industry concentration and average quarterly earnings 70
Figure B1. Industry concentration: Finance versus nonfinance 64