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An Empirical Analysis of the Decision to Train Apprentices

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  • Samuel Muehlemann
  • Juerg Schweri
  • Rainer Winkelmann
  • Stefan C. Wolter

Abstract

It is a widely held belief that apprenticeship training represents a net investment for training firms, the cost of which needs to be recouped after the training period. A new firm-level data set for Switzerland reveals large variation in net costs across firms and, remarkably, negative net costs for 60 per cent of all firms. We use these data to estimate the effect of net costs on the number of apprentices hired by a firm. The results show that the costs have a significant impact on the training decision but no significant influence on the number of apprentices, once the firm has decided to train. For policy purposes, these results indicate that subsidies for firms that already train apprentices would not boost the number of available training places. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by CEIS in its journal LABOUR.

Volume (Year): 21 (2007)
Issue (Month): 3 (09)
Pages: 419-441

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Handle: RePEc:bla:labour:v:21:y:2007:i:3:p:419-441

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References

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  1. Klaus Stöger & Rudolf Winter-Ebmer, 2001. "Lehrlingsausbildung in Österreich: Welche Betriebe bilden Lehrlinge aus?," Economics working papers 2001-10, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Niederalt, Michael & Schnabel, Claus & Kaiser, Christian, 2001. "Betriebliches Ausbildungsverhalten zwischen Kosten-Nutzen-Kalkül und gesellschaftlicher Verantwortung: Einflussfaktoren der Ausbildungsintensität von deutschen Betrieben," Discussion Papers 7, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
  4. Daron Acemoglu & Jorn-Steffen Pischke, 1996. "Why Do Firms Train? Theory and Evidence," NBER Working Papers 5605, National Bureau of Economic Research, Inc.
  5. Majumdar, Sumon, 2007. "Market conditions and worker training: How does it affect and whom?," Labour Economics, Elsevier, vol. 14(1), pages 1-23, January.
  6. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  7. Jan Erik Askilden & Oivind Anti Nilsen, 2005. "Apprentices And Young Workers: A Study Of The Norwegian Youth Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 1-17, 02.
  8. Winkelmann, Rainer, 2001. "Health Care Reform and the Number of Doctor Visits - An Econometric Analysis," IZA Discussion Papers 317, Institute for the Study of Labor (IZA).
  9. Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages S29-59, Supplemen.
  10. Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, vol. 7, pages 249-264, 08.
  11. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "The Structure of Wages and Investment in General Training," NBER Working Papers 6357, National Bureau of Economic Research, Inc.
  12. Thomas J. Kane & Dietmar Harhoff, 1997. "Is the German apprenticeship system a panacea for the U.S. labor market?," Journal of Population Economics, Springer, vol. 10(2), pages 171-196.
  13. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-33, March.
  14. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
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Citations

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Cited by:
  1. Jens Mohrenweiser, 2012. "Recruitment and Apprenticeship Training," Economics of Education Working Paper Series 0073, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Aug 2013.
  2. Blatter, Marc & Mühlemann, Samuel & Schenker, Samuel & Wolter, Stefan C., 2012. "Hiring Costs of Skilled Workers and the Supply of Firm-Provided Training," IZA Discussion Papers 6344, Institute for the Study of Labor (IZA).
  3. Ludger Woessmann, 2006. "Efficiency and Equity of European Education and Training Policies," CESifo Working Paper Series 1779, CESifo Group Munich.
  4. repec:iab:iabzaf:v:40:i:2/3:p:149-167 is not listed on IDEAS
  5. Barbara Mueller & Stefan C. Wolter, 2011. "The consequences of being different – Statistical discrimination and the school-to-work transition," Economics of Education Working Paper Series 0053, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2008. "Cost and Benefit of Apprenticeship Training – A Comparison of Germany and Switzerland," CESifo Working Paper Series 2287, CESifo Group Munich.
  7. Lerman, Robert I., 2013. "Skill Development in Middle Level Occupations: The Role of Apprenticeship Training," IZA Policy Papers 61, Institute for the Study of Labor (IZA).
  8. Dietrich, Hans & Gerner, Hans-Dieter, 2007. "The determinants of apprenticeship training with particular reference tobusiness expectations," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 221-233.
  9. Mühlemann, Samuel & Wolter, Stefan C. & Wüest, Adrian, 2009. "Apprenticeship Training and the Business Cycle," IZA Discussion Papers 4460, Institute for the Study of Labor (IZA).
  10. Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," CESifo Working Paper Series 1665, CESifo Group Munich.
  11. Muehlemann, Samuel & Pfeifer, Harald & Walden, Günter & Wenzelmann, Felix & Wolter, Stefan C., 2010. "The financing of apprenticeship training in the light of labor market regulations," Labour Economics, Elsevier, vol. 17(5), pages 799-809, October.
  12. Stefan C. Wolter, 2008. "Ausbildungskosten und -nutzen und die betriebliche Nachfrage nach Lehrlingen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 90-108, 08.
  13. Barbara Mueller & Stefan Wolter, 2014. "The role of hard-to-obtain information on ability for the school-to-work transition," Empirical Economics, Springer, vol. 46(4), pages 1447-1471, June.
  14. repec:iab:iabzaf:v:40:i:2/3:p:221-233 is not listed on IDEAS
  15. repec:iab:iabzaf:v:40:i:2/3:p:135-147 is not listed on IDEAS
  16. Samuel Muehlemann, 2013. "Der Einfluss der Internationalisierung auf die arbeitsmarktorientierte Bildung," Economics of Education Working Paper Series 0092, University of Zurich, Institute for Strategy and Business Economics (ISU).

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