Federal Regulations Have Forced Lower-Skilled Workers Out of Banking Jobs
As the federal government has piled new regulations on the financial system, lower-skilled employees have been forced out of the industry—a tradeoff that hasn’t necessarily helped consumers.
“It’s just raising the costs,” Christos Makridis, a scholar with the Mercatus Center, a free market think tank at George Mason University, tells Reason.
Makridis is one of the authors of a new study, along with Alberto Rossi, that investigates an under-acknowledged effect of federal regulations on the financial services sector imposed since the Great Recession. More regulation has brought increased automation, and lower-skilled workers have been pushed out as firms seek to hire fewer but more highly-specialized science, technology, engineering, and mathematics (STEM) workers.
The study notes that regulations on the financial services sector have increased significantly more in recent year
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