By using new panel data for Finnish banks we study the impact of training on wages and performance. To the best of our …

We use a unique firm-level data set merging administrative information on average wages paid by firms by skill level … wages. This evidence is robust to many variants of the econometric specification and to addressing potential endogeneity …

wages to reflect this. Formal analysis supports the intuition. We use the dispersion of exam grades within a field of … education as an indicator of the heterogeneity that employers face. We find solid evidence that starting wages are lower if the … variance of exam grades is higher and that starting wages are lower if the skew is higher: employers shift quality risk to new …