Posted on: July 7, 2009 at 11:30 am

Note the following correlations between when financial markets were deregulated and the outsized compensation packages that subsequently followed.

The book does a nice job showing how one led to the other — that there was both Correlation and Causation.

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Here is a similar chart, with major regulation/deregulation included:

via WSJ

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Source:
Wages and Human Capital in the U.S. Financial Industry: 1909-2006∗
Thomas Philippon, New York University
Ariell Reshef, University of Virginia
December 2008

http://pages.stern.nyu.edu/~tphilipp/papers/pr_rev15.pdf