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Why has the share of training firms declined in Switzerland?

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  • Schweri, Juerg
  • Mueller, Barbara

Abstract

"The Swiss mass apprenticeship system is market based. The share of training firms as a percentage of all firms is therefore an indicator which receives much public attention. The share of training firms declined markedly from 1985 to 2001, dropping from 24.7 to 17.6%. This has often been interpreted as a sign of firms' decreasing willingness to train apprentices. We use data from the firm census to assess whether the decline in the share of training firms can instead be explained by a range of independent variables. Besides firm characteristics and regional variables, we include supply-side factors such as demographic developments in the relevant age cohorts, which have been ignored in the empirical literature so far. Using pooled probit models, fixed-effects models and a Blinder-Oaxaca type decomposition, we are able to explain the variation in the share of training firms over time to a large extent. The main reasons for the decrease are increasing numbers of very small firms, shifts in industry composition, a reduction in the number of young people and an increasing share of young people going to grammar school. We discuss these developments in turn and conclude that they do not, in our opinion, provide sufficient reasons for state interventions in the apprenticeship market." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)

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Bibliographic Info

Article provided by Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany] in its journal Zeitschrift für ArbeitsmarktForschung – Journal for Labour Market Research.

Volume (Year): 40 (2007)
Issue (Month): 2/3 ()
Pages: 149-167

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Handle: RePEc:iab:iabzaf:v:2007:i:2/3:p:149-167

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Keywords: Ausbildungsverhalten - Determinanten; Ausbildungsbetrieb - Quote; betriebliche Berufsausbildung - Entwicklung; Betrieb; Betriebsgröße; Kleinstunternehmen; Wirtschaftsstrukturwandel; demografischer Wandel; Jugendliche; Ausbildungsentscheidung; Bildungsökonomie; Schweiz;

References

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  1. Daron Acemoglu & Joern-Steffen Pischke, 1999. "Certification of Training and Training Outcomes," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 99-28, Massachusetts Institute of Technology (MIT), Department of Economics.
  2. Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0001, University of Zurich, Institute for Strategy and Business Economics (ISU).
  3. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(1), pages 78-118, February.
  4. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 19(1), pages 91-111, 02.
  5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 70, pages 9.
  6. Fairlie, Robert W., 2006. "An Extension of the Blinder-Oaxaca Decomposition Technique to Logit and Probit Models," IZA Discussion Papers 1917, Institute for the Study of Labor (IZA).
  7. Malcomson, James M. & Maw, James W. & McCormick, Barry, 2000. "General training by firms, apprentice contracts, and public policy," Discussion Paper Series In Economics And Econometrics, Economics Division, School of Social Sciences, University of Southampton 0021, Economics Division, School of Social Sciences, University of Southampton.
  8. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, University of Wisconsin Press, vol. 8(4), pages 436-455.
  9. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
  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, Verein für Socialpolitik, vol. 7, pages 249-264, 08.
  11. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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Citations

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Cited by:
  1. 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).
  2. Katja Goerlitz, 2009. "The Development of Employers’ Training Investments Over Time – A Decomposition Analysis Using German Establishment Data," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0087, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Laia Castany, 2010. "The role of size in firms' training: evidence from Spain," International Journal of Manpower, Emerald Group Publishing, Emerald Group Publishing, vol. 31(5), pages 563-584, September.
  4. Lutz Bellmann & Hans-Dieter Gerner & Ute Leber, 2014. "Firm-Provided Training During the Great Recession," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 234(1), pages 5-22, January.

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