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The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship

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Author Info

  • Clark, Damon

    ()
    (University of California, Irvine)

  • Fahr, René

    ()
    (University of Paderborn)

Abstract

This paper assesses the potential of ‘workplace training’ with reference to German Apprenticeship. When occupational matching is important, we derive conditions under which firms provide ‘optimal’ training packages. Since the German system broadly meets these conditions, we evaluate the effectiveness of apprenticeship using a large administrative dataset. We find returns to apprenticeship for even the lowest ability school-leavers comparable to standard estimates of the return to school, and show that training is transferable across a wide range of occupations, such as a one-digit occupation group. We conclude that the positive experience with German Apprenticeship Training may guide the design of similar policies in other countries.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 378.

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Length: 46 pages
Date of creation: Oct 2001
Date of revision:
Handle: RePEc:iza:izadps:dp378

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Keywords: German apprenticeship training; human capital; occupational mobility; wages;

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References

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  1. Topel, Robert H & Ward, Michael P, 1992. "Job Mobility and the Careers of Young Men," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 439-79, May.
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Citations

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Cited by:
  1. Kathrin Göggel & Thomas Zwick, 2012. "Heterogeneous Wage Effects of Apprenticeship Training," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 756-779, 09.
  2. Gersbach, Hans & Schmutzler, Armin, 2006. "The Effects of Globalization on Worker Training," IZA Discussion Papers 2403, Institute for the Study of Labor (IZA).
  3. Cahuc, Pierre & Carcillo, Stéphane & Rinne, Ulf & Zimmermann, Klaus F., 2013. "Youth Unemployment in Old Europe: The Polar Cases of France and Germany," IZA Discussion Papers 7490, Institute for the Study of Labor (IZA).
  4. Margaret Stevens, 2012. "Human Capital and Competition: Strategic Complementarities in Firm-based Training," Economics Series Working Papers 629, University of Oxford, Department of Economics.
  5. 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).
  6. Andrew Sharpe & James Gibson, 2005. "The Apprenticeship System in Canada: Trends and Issues," CSLS Research Reports 2005-04, Centre for the Study of Living Standards.
  7. 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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