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

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  • Jones, Derek
  • Kalmi, Panu
  • Kauhanen, Antti

Abstract

By using new panel data for Finnish banks we study the impact of training on wages and performance. To the best of our knowledge, ours is the first paper to compare explicitly the effects of general and firmspecific 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 is in the range of 3-7%, whereas the performance effects vary widely depending on the measures of training intensity. The other key finding is that general training is associated with higher wage and performance effects than is firm-specific training. YLEISEN JA YRITYSKOHTAISEN KOULUTUKSEN VAIKUTUKSET PALKKOIHIN JA MENESTYMISEEN : Näyttöä pankkitoimialalta

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Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1184.

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Length: 34 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:rif:dpaper:1184

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