The wages of employees in the financial sector have increased dramatically since the 1980s relative to other industries in a large number of countries. In an earlier study (Boehm, Metger & Strömberg, 2015), we show that this is also true for the Swedish financial sector, where the relative wage of an employee in the financial sector went from being 30% higher in 1991 to being 70% higher in 2010, compared to other industries. The financial sector has thus been one of the industries that has contributed most to the increasing inequality in income and wealth that has been documented in a large number of countries over the last 40 years. In a previous study, we showed that, (1) average talent has not increased in finance since 1990; (2) the share of the most talented individuals going into finance is essentially constant; and (3) finance wages have increased across the entire talent distribution, not just for the most talented individuals. These results raise important new questions, which we want to address in this project: - If it is not increased competition for talent that is driving wages, what is it? - Which subsectors of the financial industry, and which firms, have seen the largest wage increases, and if so, why? - Why aren't more talented individuals being attracted to the financial industry, even though relative wages have increased? - To which sectors do the most talented individuals go, how has this changed over time, and what effects has this had on productivity and innovativeness?