IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v64y2012i1p151-175.html

The effects of general and firm-specific training on wages and performance: evidence from banking

Author

Listed:
  • Derek C. Jones
  • Panu Kalmi
  • Antti Kauhanen

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. Copyright 2012 Oxford University Press 2011 All rights reserved, Oxford University Press.

Suggested Citation

  • Derek C. Jones & Panu Kalmi & Antti Kauhanen, 2012. "The effects of general and firm-specific training on wages and performance: evidence from banking," Oxford Economic Papers, Oxford University Press, vol. 64(1), pages 151-175, January.
    • Handle: RePEc:oup:oxecpp:v:64:y:2012:i:1:p:151-175
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oep/gpr013
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christiane Hinerasky, 2014. "Advances in Training Evaluation - Psychological, Educational, Economic, and Econometric Perspectives on the Kirkpatrick Model," Working Papers Dissertations 14, Paderborn University, Faculty of Business Administration and Economics.
    2. Mikko MAKINEN & Derek C. JONES, 2015. "Comparative Efficiency Between Cooperative, Savings And Commercial Banks In Europe Using The Frontier Approach," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(3), pages 401-420, September.
    3. Christos Bilanakos & Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2017. "Do Dominant Firms Provide More Training?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(1), pages 67-95, February.
    4. Daria Luchinskaya & Peter Dickinson, 2019. "‘Virtuous’ and ‘Vicious’ Circles? Adults’ Participation in Different Types of Training in the UK and Its Association with Wages," Social Inclusion, Cogitatio Press, vol. 7(3), pages 177-201.
    5. Santiago Caicedo & Miguel Espinosa & Arthur Seibold, 2022. "Unwilling to Train?—Firm Responses to the Colombian Apprenticeship Regulation," Econometrica, Econometric Society, vol. 90(2), pages 507-550, March.
    6. John S Heywood & Uwe Jirjahn & Annika Pfister, 2020. "Product market competition and employer provided training in Germany," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(2), pages 533-556.
    7. Nuttaneeya Ann Torugsa & Anthony Arundel & Wayne O’Donohue, 2016. "Inter-Firm Collaboration And Innovation Performance For New-To-Market Products — The Moderating Role Of Technological And Skills-Related Knowledge Assets," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-22, August.
    8. Elizabeth Lyons, 2020. "The impact of job training on temporary worker performance: Field experimental evidence from insurance sales agents," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 122-146, January.
    9. Brunello, Giorgio & Rückert, Désirée & Weiss, Christoph T. & Wruuck, Patricia, 2023. "Advanced Digital Technologies and Investment in Employee Training: Complements or Substitutes?," IZA Discussion Papers 15936, Institute of Labor Economics (IZA).
    10. Mark A. Klinedinst, 2016. "Bank Decapitalization and Credit Union Capitalization," SAGE Open, , vol. 6(1), pages 21582440166, February.
    11. Ilanit Gavious & Yaron Lahav & Meir Russ, 2016. "Changes in the value implications of compensation costs throughout the economic cycle: an examination of high-tech versus low-tech industries," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 23(2), pages 200-223, June.
    12. Elizabeth Lyons, 2016. "The Impact of Job-Specific Training on Short-Term Worker Performance: Evidence from a Field Experiment," Natural Field Experiments 00572, The Field Experiments Website.
    13. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    14. Siang, Liew & Noor, Zulridah, 2015. "The Impact of Training on the Conditional Wage Distribution in Selected Service Subsectors in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(1), pages 37-48.
    15. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    16. Shawn M. Riley & Steven C. Michael & Joseph T. Mahoney, 2017. "Human capital matters: Market valuation of firm investments in training and the role of complementary assets," Strategic Management Journal, Wiley Blackwell, vol. 38(9), pages 1895-1914, September.
    17. Pedrini, Giulio & Cappiello, Giuseppe, 2022. "The impact of training on labour productivity in the European utilities sector: An empirical analysis," Utilities Policy, Elsevier, vol. 74(C).

    More about this item

    JEL classification:

    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:64:y:2012:i:1:p:151-175. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.