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Premature Apprenticeship Terminations: An Economic Analysis

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Author Info
Donata Bessey () (Institute for Strategy and Business Economics, University of Zurich)
Uschi Backes-Gellner () (Institute for Strategy and Business Economics, University of Zurich)

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Abstract

This paper presents empirical evidence on premature terminations of apprenticeship contracts in Germany. Our novel approach uses human capital theory with a regional component as a clear-cut framework for the analysis. It derives testable hypotheses on individual decisions to finish an investment in human capital, namely, their apprenticeship training. Using a German data set, we find some evidence for the appropriateness of our theory, especially with respect to the short-term cost of an apprenticeship. Regional impact factors also seem to have a decisive impact on the decision to drop out from vocational training. We conclude that economic incentives, also long-term ones, seem to play a decisive role in individuals’ decisions whether to finish their training or not.

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Publisher Info
Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0002.

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Length: 35 pages
Date of creation: Aug 2007
Date of revision:
Handle: RePEc:iso:educat:0002

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Related research
Keywords: Apprenticeship training; human capital; regional labor markets;

Other versions of this item:

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Private Pensions

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rainer Winkelmann, 1996. "Employment prospects and skill acquisition of apprenticeship-trained workers in Germany," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(4), pages 658-672, July.
  2. Joshua Angrist & Eric Bettinger & Eric Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," Natural Field Experiments 0004, The Field Experiments Website. [Downloadable!]
    Other versions:
  3. Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  4. Wheeler, Christopher H, 2001. "Search, Sorting, and Urban Agglomeration," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 879-99, October. [Downloadable!] (restricted)
  5. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
  6. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May. [Downloadable!] (restricted)
  7. Giorgio Barba Navaretti & Daniele Checchi & Alessandro Turrini, 2003. "Adjusting Labor Demand: Multinational Versus National Firms: A Cross-European Analysis," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 708-719, 04/05. [Downloadable!] (restricted)
    Other versions:
  8. Francesca Fabbri & Jonathan E. Haskel & Matthew J. Slaughter, 2003. "Does Nationality Of Ownership Matter For Labor Demands?," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 698-707, 04/05. [Downloadable!] (restricted)
  9. Regina T. Riphahn, 2002. "Residential location and youth unemployment: The economic geography of school-to-work transitions," Journal of Population Economics, Springer, vol. 15(1), pages 115-135. [Downloadable!] (restricted)
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  10. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-40, September. [Downloadable!] (restricted)
    Other versions:
  11. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May. [Downloadable!] (restricted)
    Other versions:
  12. David M. Cutler & Adriana Lleras-Muney, 2006. "Education and Health: Evaluating Theories and Evidence," NBER Working Papers 12352, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Uschi Backes-Gellner & Donata Bessey & Kerstin Pull & Simone Tuor, 2008. "What Behavioural Economics Teaches Personnel Economics," Working Papers 0077, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
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