Apprenticeship Training – What for? Investment in Human Capital or Substitute for Cheap Labour?
AbstractApprenticeship training in Germany is generally considered to be an investment of companies into the human capital of their apprentices. This view is mainly based on the German cost benefit studies which testify training firms high net costs for their apprenticeships, but these results have not been reconfirmed by other types of data or methods. We show that motiva-tions for apprenticeship training are not homogeneous: some firms follow an investment strategy and others follow a substitution strategy. We derive an empirical method to identify different training strategies which can be used with publicly available company data. Accord-ing to our classification, we find that in Germany 18.5 percent of all companies follow a sub-stitution strategy and 43.75 percent to follow an investment strategy; the rest is mixed or un-determined. In a second step we estimate the determinants for a substitution strategy. We find sizeable differences between sectors with different skill requirements and between firms’ cov-erage of industrial relations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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 0017.
Length: 22 pages
Date of creation: May 2008
Date of revision:
Apprenticeship Training; Human Capital Investments; Substitution Effects;
Find related papers by 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
- J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-03-08 (All new papers)
- NEP-BEC-2008-03-08 (Business Economics)
- NEP-HRM-2008-03-08 (Human Capital & Human Resource Management)
- NEP-LAB-2008-03-08 (Labour Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2009.
"Costs and Benefits of Apprenticeship Training. A Comparison of Germany and Switzerland,"
Applied Economics Quarterly (formerly: Konjunkturpolitik),
Duncker & Humblot, Berlin, vol. 55(1), pages 7-37.
- Dionisius, Regina & Mühlemann, Samuel & Pfeifer, Harald & Walden, Günter & Wenzelmann, Felix & Wolter, Stefan C., 2008. "Cost and Benefit of Apprenticeship Training: A Comparison of Germany and Switzerland," IZA Discussion Papers 3465, Institute for the Study of Labor (IZA).
- Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2008. "Cost and Benefit of Apprenticeship Training – A Comparison of Germany and Switzerland," CESifo Working Paper Series 2287, CESifo Group Munich.
- Paul Ryan & Uschi Backes-Gellner & Silvia Teuber & Karin Wagner, 2012. "Apprentice pay in Britain, Germany and Switzerland: institutions, market forces, market power," Economics of Education Working Paper Series 0075, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Jens Mohrenweiser & Thomas Zwick, 2008.
"Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered,"
Economics of Education Working Paper Series
0016, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Oct 2008.
- Mohrenweiser, Jens & Zwick, Thomas, 2009. "Why do firms train apprentices? The net cost puzzle reconsidered," Labour Economics, Elsevier, vol. 16(6), pages 631-637, December.
- Mohrenweiser, Jens & Zwick, Thomas, 2008. "Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," ZEW Discussion Papers 08-019, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Pahnke, André & Icks, Annette & Kay, Rosemarie, 2013. "Übernahme von Auszubildenden: Betriebsgrößenspezifische Analysen," IfM-Materialien 221, Institut für Mittelstandsforschung (IfM) Bonn.
- Kathrin Göggel & Thomas Zwick, 2012.
"Heterogeneous Wage Effects of Apprenticeship Training,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 114(3), pages 756-779, 09.
- Kathrin Goeggel & Thomas Zwick, 2011. "Heterogeneous Wage Effects of Apprenticeship Training," Economics of Education Working Paper Series 0062, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Goeggel, Kathrin & Zwick, Thomas, 2009.
"Good occupation - bad occupation? The quality of apprenticeship training,"
ZEW Discussion Papers
09-024, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Kathrin Goeggel & Thomas Zwick, 2009. "Good Occupation – Bad Occupation? The Quality of Apprenticeship Training," Economics of Education Working Paper Series 0045, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Busemeyer, Marius R., 2011. "Varieties of cross-class coalitions in the politics of dualization: Insights from the case of vocational training in Germany," MPIfG Discussion Paper 11/13, Max Planck Institute for the Study of Societies.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johannes Meuer).
If references are entirely missing, you can add them using this form.