Finance staff are on higher salaries than their equals in other sectors, a study has shown
Finance workers tend to take home a higher salary than their counterparts in other sectors of the economy, even if they have the same standard of qualifications, experience and characteristics, according to newly published research.
Think-tank IPPR's report on the 'financialisation' of Britain's economy, which will be published early next year, shows that over the last 25 years there has been a significant premium in financial sector wages.
Unsurprisingly, the results show it is senior staff who have benefited the most from the increased salaries on offer during the last quarter of a century.
Overall, the average disposable income enjoyed by staff in the finance sector has fluctuated largely between 12% and 29% during that time.
In recent years, following the first signs of the credit crunch and subsequent recessions following 2007, this figure has tended to hover around 20%, according to the findings.
Kayte Lawton, a senior research fellow at the IPPR, explained that researchers took considerable time to examine the pay awarded to staff who were working in the finance sector.
They then used this data and compared it with that of similarly educated individuals earning a living in other sectors, finding that there was a "clear wage premium for workers in the finance sector".
However, Ms Lawton noted that these figures can be somewhat mis-leading given the vast range of employees and salaries which are covered within the nation's finance sector.
These include the take-home pay for hedge fund managers and bank chief executives, as well as the staff who operate in local branches, call centre operatives, and all the many staff members in between.
Ms Lawton described how the pay given to those at the very top of the City hierarchy is "extraordinarily high", and this goes some way to boosting the national wage and keeping it higher than that recorded in other sectors.
"This wage premium for City workers is a major source of pay inequality in the UK," the expert added.
Copyright Press Association 2012