Why Do Firms Train? Empirical Evidence on the First Labour Market Outcomes of Graduated Apprentices

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Why Do Firms Train? Empirical Evidence on the First Labour Market Outcomes of Graduated Apprentices

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Euwals, Rob (IZA, Bonn)
Winkelmann, Rainer () (IZA, Bonn)

Additional information is available for the following registered author(s):

Rainer Winkelmann

Abstract

The apprenticeship system is the most important source of formal post-secondary training in Germany. Our paper contributes to the ongoing debate as to why firms are willing to invest in such training even though many apprentices will leave the training firm soon after completion of the apprenticeship. Using German register data - the IAB Employment Sample - we find that apprentices staying with their training firm after graduation have (1) higher wages and (2) longer first-job durations than apprentices leaving the training firm. These results support theories according to which firms use the apprenticeship system to select and retain the more able apprentices, thereby recouping the costs of investing in skills that are portable in principle.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 319.

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Length: 32 pages
Date of creation: Jun 2001
Date of revision:
Handle: RePEc:iza:izadps:dp319

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Paper
- Euwals, Rob & Winkelmann, Rainer, 2001. "Why do Firms Train? Empirical Evidence on the First Labour Market Outcomes of Graduate Apprentices," CEPR Discussion Papers 2880, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)

Find related papers by JEL classification:
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
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
J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

This paper has been announced in the following NEP Reports:

NEP-ALL-2001-07-13 (All new papers)
NEP-LAB-2001-07-13 (Labour Economics)

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.:

Daron Acemoglu & Joern-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," Working papers 98-12, Massachusetts Institute of Technology (MIT), Department of Economics.
Other versions:
- Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages F112-42, February. [Downloadable!] (restricted)
Wolfgang Franz & Joachim Inkmann & Winfried Pohlmeier & Volker Zimmermann, 1997. "Young and Out in Germany: On the Youths' Chances of Labor Market Entrance in Germany," NBER Working Papers 6212, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Harhoff, Dietmar & Kane, Thomas J, 1996. "Is the German Apprenticeship System a Panacea for the US Labour Market?," CEPR Discussion Papers 1311, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Thomas J. Kane & Dietmar Harhoff, 1997. "Is the German apprenticeship system a panacea for the U.S. labor market?," Journal of Population Economics, Springer, vol. 10(2), pages 171-196. [Downloadable!] (restricted)
Winkelmann, Rainer & Zimmermann, Klaus F, 1998. "Is Job Stability Declining in Germany? Evidence from Count Data Models," Applied Economics, Taylor and Francis Journals, vol. 30(11), pages 1413-20, November. [Downloadable!] (restricted)
Other versions:
- Winkelmann, Rainer & Zimmermann, Klaus F., 1998. "Is Job Stability Declining in Germany? Evidences from Count Data Models," IZA Discussion Papers 01, Institute for the Study of Labor (IZA). [Downloadable!]
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)
Other versions:
- Regina T. Riphahn, 1999. "Residential Location and Youth Unemployment: The Economic Geography of School-To-Work Transitions," IZA Discussion Papers 99, Institute for the Study of Labor (IZA). [Downloadable!]
Daron Acemoglu & Jorn-Steffen Pischke, 1999. "The Structure of Wages and Investment in General Training," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 539-572, June. [Downloadable!] (restricted)
Other versions:
- Acemoglu, Daron & Pischke, Jörn-Steffen, 1998. "The Structure of Wages and Investment in General Training," CEPR Discussion Papers 1833, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Acemoglu, D. & Pischke, J.S., 1997. "The Structure of Wages and Investment in General Training," Working papers 97-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Daron Acemoglu & Jorn-Steffen Pischke, 1998. "The Structure of Wages and Investment in General Training," NBER Working Papers 6357, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 113(1), pages 78-118, February. [Downloadable!] (restricted)
Other versions:
- Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- 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.
- Daron Acemoglu & Jorn-Steffen Pischke, 1996. "Why Do Firms Train? Theory and Evidence," NBER Working Papers 5605, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
A. Werwatz, . "How firm-specific is German apprenticeship training?," Sonderforschungsbereich 373 1996-12, Humboldt Universitaet Berlin.
Lancaster, Tony, 1979. "Econometric Methods for the Duration of Unemployment," Econometrica, Econometric Society, vol. 47(4), pages 939-56, July. [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.)

T. Korpi & A. Mertens, . "Training Systems and Labor Mobility -A Comparison between Germany and Sweden," Sonderforschungsbereich 373 2002-19, Humboldt Universitaet Berlin.
von Wachter, Till & 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). [Downloadable!]
Gersbach, Hans & Schmutzler, Armin, 2005. "The Effects of Globalization on Worker Training," CEPR Discussion Papers 4879, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Hans Gersbach & Armin Schmutzler, 2006. "The Effects of Globalization on Worker Training," IZA Discussion Papers 2403, Institute for the Study of Labor (IZA). [Downloadable!]
Anette Boom, . "Firms' Investments in General Training and the Market for Skilled Labour," Papers 013, Departmental Working Papers. [Downloadable!]
Other versions:
- Boom, A., 2001. "Firm's Investment in General Training and the Market for Skilled Labour," Norway; Department of Economics, University of Bergen 1101, Department of Economics, University of Bergen.
Clark, Damon, 2002. "Matching, Screening and Firm Investment in General Training: Theory and Evidence," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 A2-4, International Conferences on Panel Data. [Downloadable!]

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