Premature Apprenticeship Terminations: An Economic Analysis
AbstractThis 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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Bibliographic InfoPaper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0002.
Length: 35 pages
Date of creation: Aug 2007
Date of revision:
Apprenticeship training; human capital; regional labor markets;
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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