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Sector-Specific Training and Mobility in Germany

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  • Lars Vilhuber

Abstract

This article studies mobility patterns of German workers in light of a model of sector-specific human capital. Furthermore, I employ and describe little-used data on continuous on-the-job training occuring after apprenticeships. Results are presented describing the incidence and duration of continuous training. Continuous training is quite common, depite the high incidence of apprenticeships which precedes this part of a worker's career. Most previous studies have only distinguished between firm-specific and general human capital, generally concluding that training was general. Inconsistent with those conclusions, I show that German men are more likely to find a job within the same sector if they have received continuous training in that sector. These results are similar to results obtained for young U.S. workers, and suggest that sector-specific capital is an important feature of very different labor markets. Furthermore, the results suggest that the observed effect of training on mobility is sensitive to the state of the business cycle, indicating a more complex interaction between supply and demand that most theoretical models allow for. Cet article étudie la mobilité des travailleurs allemands à la lumière d'un modèle de capital humain dont la spécificité est sectorielle. En outre, j'utilise et décris des données peu utilisées sur la formation formelle ayant lieu après la fin d'un apprentissage. Comparativement aux États-Unis, un plus grand nombre de travailleurs suit une formation annuellement, et ce en dépit d'une incidence élévée d'apprentissage précédent. Tandis que plusieurs autres études font uniquement une distinction entre capital humain spécifique à une seule firme et capital humain général, je montre que les travailleurs allemands ont une plus grande probabilité de trouver un emploi dans un secteur s'ils ont suivi une formation formelle dans ce secteur. Ce résultat n'est cohérent ni avec la présence de capital humain spécifique à une seule firme, ni avec du capital humain complètement général. Conjointement avec des résultats semblables pour des travailleurs américains, il suggère l'importance du capital humain spécifique à l'industrie. Par ailleurs, l'effet de la formation sur la mobilité semble sensible à l'état de la conjoncture, suggérant une relation entre offre et demande plus complexe que celle décrite par la plupart des modèles théoriques.

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Bibliographic Info

Paper provided by CIRANO in its series CIRANO Working Papers with number 99s-03.

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Date of creation: 01 Feb 1999
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Handle: RePEc:cir:cirwor:99s-03

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Keywords: On-the-job training; employment duration; sectorial mobility; industry-specific human capital; multinomial models; Formation en lieu de travail; durée de l'emploi; mobilité sectorielle; capital humain spécifique au secteur; modèles multinomiaux;

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  1. Jorn-Steffen Pischke, 1996. "Continuous Training in Germany," NBER Working Papers 5829, National Bureau of Economic Research, Inc.
  2. Daron Acemoglu & Jorn-Steffen Pischke, 1996. "Why Do Firms Train? Theory and Evidence," NBER Working Papers 5605, National Bureau of Economic Research, Inc.
  3. Parent, Daniel, 1999. "Wages and Mobility: The Impact of Employer-Provided Training," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 17(2), pages 298-317, April.
  4. A. Werwatz, 1997. "Mobility after Apprenticeship- How effective is the German apprenticeship system?," SFB 373 Discussion Papers 1997,75, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  5. Thomas, Jonathan M, 1996. "An Empirical Model of Sectoral Movements by Unemployed Workers," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(1), pages 126-53, January.
  6. Daniel Parent, 1995. "Industry-Specific Capital and the Wage Profile: Evidence from the NLSY and the PSID," Working Papers 729, Princeton University, Department of Economics, Industrial Relations Section..
  7. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 87(5), pages 972-90, October.
  8. Lisa M. Lynch, 1992. "Differential Effects of Post-School Training on Early Career Mobility," NBER Working Papers 4034, National Bureau of Economic Research, Inc.
  9. Rainer Winkelmann, 1996. "Employment prospects and skill acquisition of apprenticeship-trained workers in Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
  10. Lars Vilhuber, 1997. "Sector-Specific On-the-Job Training: Evidence from U.S. Data," CIRANO Working Papers, CIRANO 97s-42, CIRANO.
  11. Leon Muszynski & David A. Wolfe, 1989. "New Technology and Training: Lessons from Abroad," Canadian Public Policy, University of Toronto Press, vol. 15(3), pages 245-264, September.
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  13. Lynch, Lisa M, 1992. "Private-Sector Training and the Earnings of Young Workers," American Economic Review, American Economic Association, vol. 82(1), pages 299-312, March.
  14. A. Werwatz, 1996. "How firm-specific is German apprenticeship training?," SFB 373 Discussion Papers 1996,12, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  15. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(5), pages 749-73, October.
  16. David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector, pages 25-60 National Bureau of Economic Research, Inc.
  17. John M. Barron & Mark C. Berger & Dan A. Black, 1997. "On-the-Job Training," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, W.E. Upjohn Institute for Employment Research, number ojt.
  18. Barron, John M & Berger, Mark C & Black, Dan A, 1997. "How Well Do We Measure Training?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages 507-28, July.
  19. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-14, November.
  20. Loewenstein, Mark A & Spletzer, James R, 1998. "Dividing the Costs and Returns to General Training," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(1), pages 142-71, January.
  21. Dietmar Harhoff & Thomas J. Kane, 1993. "Financing Apprenticeship Training: Evidence from Germany," NBER Working Papers 4557, National Bureau of Economic Research, Inc.
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Cited by:
  1. Hans Gersbach & Armin Schmutzler, 2002. "A Product Market Theory of Worker Training," SOI - Working Papers 0214, Socioeconomic Institute - University of Zurich, revised Jan 2003.
  2. Gersbach, Hans & Schmutzler, Armin, 2006. "The Effects of Globalization on Worker Training," IZA Discussion Papers 2403, Institute for the Study of Labor (IZA).

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