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Good Occupation – Bad Occupation? The Quality of Apprenticeship Training

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Author Info

  • Kathrin Goeggel

    (Federal Ministry of Labour and Social Affairs, Berlin)

  • Thomas Zwick

    (LMU München)

Abstract

Small average wage effects of employer and/or occupation changes after apprenticeship training mask large differences between occupation groups and apprentices with different schooling back-grounds. Apprentices in commerce and trading occupations strongly profit from an employer change. Employer and occupation changers in industrial occupations face large wage disadvantages, however. We are the first to analyse these differences while those quality differences between training firms that have been widely studied before are small. This paper also explains differences between previous findings by comparing their empirical estimation strategies. It demonstrates that selectivity into occupations and changers, unobserved heterogeneity between occupations, and sample selection matter. Finally, it proposes several improvements in the estimation technique to measure apprenticeship quality.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0045_lhwpaper.pdf
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Bibliographic 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 0045.

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Length: 35 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:iso:educat:0045

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Keywords: Wage mark-up; apprenticeship training; occupations;

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References

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  1. Fersterer, Josef & Pischke, Jörn-Steffen & Winter-Ebmer, Rudolf, 2007. "Returns to Apprenticeship Training in Austria: Evidence from Failed Firms," Economics Series 215, Institute for Advanced Studies.
  2. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Imputation Rules to Improve the Education Variable in the IAB Employment Subsample," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 405-436.
  3. Maxim Poletaev & Chris Robinson, 2008. "Human Capital Specificity: Evidence from the Dictionary of Occupational Titles and Displaced Worker Surveys, 1984-2000," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 387-420, 07.
  4. 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).
  5. Wachter, Till von & Bender, Stefan, 2004. "In the Right Place at the Wrong Time: The Role of Firms and Luck in Young Workers' Careers," IZA Discussion Papers 1348, Institute for the Study of Labor (IZA).
  6. Spiros Bougheas & Yannis Georgellis, 2004. "Early Career Mobility and Earnings Profiles of German Apprentices: Theory and Empirical Evidence ," LABOUR, CEIS, vol. 18(2), pages 233-263, 06.
  7. Louis S. Jacobson & Robert J. LaLonde & Daniel Sullivan, 1992. "Earnings Losses of Displaced Workers," Upjohn Working Papers and Journal Articles 92-11, W.E. Upjohn Institute for Employment Research.
  8. Damon Clark & René Fahr, 2002. "The Promise of Workplace Training for Non-College Bound Youth: Theory and Evidence from German Apprenticeship," CEP Discussion Papers dp0518, Centre for Economic Performance, LSE.
  9. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  10. Regula Geel & Johannes Mure & Uschi Backes-Gellner, 2008. "Specificity of Occupational Training and Occupational Mobility: An Empirical Study Based on Lazear’s Skill-Weights Approach," Economics of Education Working Paper Series 0038, University of Zurich, Institute for Strategy and Business Economics (ISU).
  11. Edward P. Lazear, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," NBER Working Papers 9679, National Bureau of Economic Research, Inc.
  12. Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
  13. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. Jens Mohrenweiser & Uschi Backes-Gellner, 2008. "Apprenticeship Training – What for? Investment in Human Capital or Substitute for Cheap Labour?," Economics of Education Working Paper Series 0017, University of Zurich, Institute for Strategy and Business Economics (ISU).
  15. Zwick, Thomas, 2007. "Apprenticeship training in Germany - investment or productivity driven?," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 193-204.
  16. 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.
  17. 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.
  18. repec:iab:iabmit:v:30:i:3:p:671-674 is not listed on IDEAS
  19. Tomas Korpi & Antje Mertens, 2003. "Training Systems and Labor Mobility: A Comparison between Germany and Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 597-617, December.
  20. 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.
  21. 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.
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Citations

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Cited by:
  1. Ronald Bachmann & Thomas K. Bauer & Peggy David, 2010. "Labour Market Entry Conditions, Wages and Job Mobility," Ruhr Economic Papers 0188, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Regula Geel & Uschi Backes-Gellner, 2009. "Occupational Mobility Within and Between Skill Clusters: An Empirical Analysis Based on the Skill-Weights Approach," Economics of Education Working Paper Series 0047, University of Zurich, Institute for Strategy and Business Economics (ISU).

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