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Firm-Provided Training During the Great Recession

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Author Info

  • Lutz Bellmann

    ()
    (Universität Erlangen-Nuernberg)

  • Hans-Dieter Gerner

    ()
    (Institute for Employment Research)

  • Ute Leber

    ()
    (Institute for Employment Research)

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    Abstract

    Even though the 2008/09 economic crisis had only minor employment effects on the German labor market, it might have affected firms’ further training and apprenticeship training behavior. From a theoretical point of view, the impact of the business cycle on firms’ training behaviour is ambiguous. There are reasons for an increase of training during a downturn (e.g., declining opportunity costs of training, fewer exit options for trained workers) as well as arguments for a decrease of training (e.g., uncertain future benefits of training). The existing empirical evidence on the relationship between training and economic downturns is relatively scarce. In particular, we are not aware of any empirical study investigating the effects of the most recent crisis on firms’ training activities in Germany. Our paper aims to fill this gap by using data from the IAB Establishment Panel, a representative German panel data set with annual information about almost 16,000 establishments. In particular, we analyzed the provision and the intensity of further training and apprenticeship training in firms which were affected by the crisis and in those which were not. Our empirical investigation revealed that the establishments, irrespective of whether or not they were hit by the economic crisis, decreased their further training and apprenticeship training efforts in 2009 compared to 2008. However, establishments directly affected by the great recession tended to reduce their training activities more often than those which were not affected. Furthermore, we found much stronger variations in the development of firms’ further training activities than in the development of their apprenticeship training.

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    Bibliographic Info

    Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

    Volume (Year): 234 (2014)
    Issue (Month): 1 (January)
    Pages: 5-22

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    Handle: RePEc:jns:jbstat:v:234:y:2014:i:1:p:5-22

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    Related research

    Keywords: Further training; apprenticeship training; great recession; IAB Establishment Panel;

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    References

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    1. 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.
    2. Bassanini, Andrea & Booth, Alison L. & Brunello, Giorgio & De Paola, Maria & Leuven, Edwin, 2005. "Workplace Training in Europe," IZA Discussion Papers 1640, Institute for the Study of Labor (IZA).
    3. Brunello, Giorgio, 2009. "The Effect of Economic Downturns on Apprenticeships and Initial Workplace Training: A Review of the Evidence," IZA Discussion Papers 4326, Institute for the Study of Labor (IZA).
    4. Schweri, Juerg & Mueller, Barbara, 2007. "Why has the share of training firms declined in Switzerland?," 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 149-167.
    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. 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).
    7. Andrea Bassanini & Giorgio Brunello, 2011. "Barriers to Entry, Deregulation and Workplace Training," "Marco Fanno" Working Papers 0137, Dipartimento di Scienze Economiche "Marco Fanno".
    8. 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.
    9. John M. Barron & Mark C. Berger & Dan A. Black, 1999. "Do Workers Pay for On-The-Job Training?," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 235-252.
    10. Cihan Bilginsoy, 2003. "The hazards of training: Attrition and retention in construction industry apprenticeship programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 54-67, October.
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    Cited by:
    1. Guerrazzi, Marco, 2014. "Workforce ageing and the training propensity of Italian firms: cross-sectional evidence from the INDACO survey," MPRA Paper 56826, University Library of Munich, Germany.

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