So what accounts for the relative decline in jobs in high-wage hospitals and finance? One obvious possibility is increased regulation. The Affordable Care Act for hospitals and Dodd-Frank for finance both passed in 2010, the year real wages began to decline. It might be a coincidence that the industries most affected by these two laws suffered the most damage. But the following facts lend some credence to regulation as a causal factor.

First, the decline in the share of workers in financial activities from 2006-10 was about one-fifth as rapid as that between 2010 and 2014. Given that the financial crisis peaked in autumn 2008, one would have expected the earlier period to see the most rapid declines, not the reverse.

Second, the share of workers in hospitals increased rapidly from 2006 to 2010, placing it among the top 10% of industries in labor growth. That trend was reversed in the past four years. Nursing and residential care’s share of employment also grew in the early period and declined in the latter one. Ambulatory health-care services, whose share did continue to grow from 2010 to 2014, slowed to one-fourth the pace of growth that prevailed from 2006 to 2010.

Third, industries with educationally similar workforces to those in finance and hospitals, like professional and technical services, enjoyed continued growth in their share of the workforce during the latter period. Even the construction industry, which was at the center of the recession and saw substantial declines between 2006 and 2010, experienced slight increases in share between 2010 and 2014.