Finance and the reallocation of scientific, engineering and mathematical talent

The US financial sector has become a magnet for the brightest graduates in science, technology, engineering and mathematical fields (STEM). We provide quantitative bases this anecdotal fact US, over period 1980–2019 with specific focus on last decade where information major of study is available. First, we show that long-run educational upgrading finance was biased towards STEM graduates, especially postgraduates, accelerated decade. Second, STEM-upgrading also occurs within business occupations, matching task reorientation mathematics those occupations. Third, reallocation more pronounced among experienced workers peaking at prime age. Fourth, associated large wage premia finance, which are heterogeneous across age groups, degrees along distribution. Returns to STEMs higher than returns other very high managerial occupations top distribution, postgraduates.