The Effects of General and Firm-specific Training on Wages and Performance: Evidence from Banking

Type of Work

Article

Date

1-2012

Journal Title

Oxford Economic Papers

Journal ISSN

0030-7653

Journal Volume

64

Journal Issue

1

First Page

151

Last Page

175

DOI

10.1093/oep/gpr013

Abstract

Using new panel data for Finnish co-operative banks we study the impact of training on wages and performance. To our knowledge, this is the first paper to compare explicitly the effects of general and firm-specific workplace training on outcomes for both employees and firms. Unlike much existing literature, we find stronger evidence that training improves worker outcomes rather than organizational performance. Depending upon specification, the estimated wage elasticity with respect to training ranges from 3–7%, whereas we find virtually no effects on organizational performance.

JEL classification: G21, J24, M53, P13

Hamilton Areas of Study

Economics

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