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On the productivity effects of training apprentices in Hungary: evidence from a unique matched employer–employee dataset

Author

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  • Sofie Cabus

    (KU Leuven
    Maastricht University)

  • Eszter Nagy

    (Hungarian Academy of Sciences
    Central European University)

Abstract

This paper investigates the effects of training apprentices on the productivity of Hungarian firms. In order to retrieve a causal estimate of the effects of apprenticeship training on firm performance, we apply a set of dynamic panel data estimation techniques. We create a unique administrative matched employer–employee panel dataset containing over 40,000 employers in Hungary over the period between 2003 and 2011 in the manufacturing, construction, wholesale and retail, and hotels and restaurants sector. Our results indicate that an increase in the share of apprentices (per full-time equivalent worker) decreases the productivity of Hungarian firms in all four sectors. Further, we observe that retention rates of apprentices are low and further slacken in the final years of observation.

Suggested Citation

  • Sofie Cabus & Eszter Nagy, 2021. "On the productivity effects of training apprentices in Hungary: evidence from a unique matched employer–employee dataset," Empirical Economics, Springer, vol. 60(4), pages 1685-1718, April.
    • Handle: RePEc:spr:empeco:v:60:y:2021:i:4:d:10.1007_s00181-019-01817-y
    DOI: 10.1007/s00181-019-01817-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Apprentices; Firm performance; Panel data; Training; Workplace;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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