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

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.