Apprentice pay in Britain, Germany and Switzerland: institutions, market forces, market power
AbstractAlthough trainee pay is central to the economics of work-based training, institutionalists have paid it little attention, while economists typically assume that it is set by market clearing. We document large differences in the pay of metalworking apprentices in three countries: relative to the pay of skilled employees, it is high in Britain, middling in Germany, and low in Switzerland. Combining fieldwork evidence with national survey data, we associate apprentice pay with both institutional attributes and market forces: specifically, with trade union presence and goals, employer organisation, the contractual status of apprentices, the supply of eligible and interested young people, and public subsidies. Apprentice pay appears to have fallen in Britain and Germany as bargaining coverage has declined.
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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 0075.
Length: 30 pages
Date of creation: Mar 2012
Date of revision:
Apprenticeship training; pay structure; trade unions; employers’ associations; collective bargaining; training contracts; young workers; public subsidy;
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
- J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-28 (All new papers)
- NEP-EUR-2012-03-28 (Microeconomic European Issues)
- NEP-HME-2012-03-28 (Heterodox Microeconomics)
- NEP-LAB-2012-03-28 (Labour Economics)
- NEP-LMA-2012-03-28 (Labor Markets - Supply, Demand, & Wages)
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