I show that liquidity constraints are related to individuals' occupational choice. A proxy for the prospect of becoming liquidity constrained affects negatively the probability of being self-employed as opposed to being employed in the private or the public sectors. Furthermore, individuals with...

We show that long-term compensation is associated with higher pay in the financial industry and this association is stronger in markets with high competition for talent. We argue that this evidence supports models of competition for talent based on retention motives.