XXV Edition

1-2 December 2016"

Bank Efficiency: Does Education of Bank Employees Matter?

Tzeremes Nickolaos, University of Thessaly
Matousek Roman, University of Kent

The paper investigates in a dynamic context the effect of employees education on banks’ technical efficiency levels. Our methodological framework incorporates the latest developments on the probabilistic approach of efficiency measurement as introduced by Bădin et al. (2012). We apply time-dependent conditional efficiency estimates to analyze a sample of 42 Turkish banks for the period from 2002 to 2015. The empirical evidence reveals a non-linear relationship between education and banks’ efficiency levels. More specifically it is reported that the type of education affect differently banks’ technological change and technological catch-up levels. Finally, the empirical evidence suggests that higher education (academic qualification) is not always aligned with higher technical efficiency levels.

Area: Banking

Keywords: Bank efficiency; Conditional efficiency measures; Data Envelopment Analysis

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