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

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  • 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. Robert H. Topel & Michael P. Ward, 1988. "Job Mobility and the Careers of Young Men," NBER Working Papers 2649, National Bureau of Economic Research, Inc.
  2. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 113(1), pages 78-118, February.
  3. Mortensen, Dale T., 1987. "Job search and labor market analysis," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 2, chapter 15, pages 849-919 Elsevier.
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  7. Chang, Chun & Wang, Yijiang, 1996. "Human Capital Investment under Asymmetric Information: The Pigovian Conjecture Revisited," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 14(3), pages 505-19, July.
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  22. repec:bla:restud:v:72:y:2005:i:1:p:77-108 is not listed on IDEAS
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Citations

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Cited by:
  1. Kathrin Goeggel & Thomas Zwick, 2009. "Good Occupation – Bad Occupation? The Quality of Apprenticeship Training," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0045, University of Zurich, Institute for Strategy and Business Economics (ISU).
  2. Gersbach, Hans & Schmutzler, Armin, 2005. "The Effects of Globalization on Worker Training," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4879, C.E.P.R. Discussion Papers.
  3. Andrew Sharpe & James Gibson, 2005. "The Apprenticeship System in Canada: Trends and Issues," CSLS Research Reports, Centre for the Study of Living Standards 2005-04, Centre for the Study of Living Standards.
  4. Margaret Stevens, 2012. "Human Capital and Competition: Strategic Complementarities in Firm-based Training," Economics Series Working Papers, University of Oxford, Department of Economics 629, University of Oxford, Department of Economics.
  5. 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).
  6. Kathrin Göggel & Thomas Zwick, 2012. "Heterogeneous Wage Effects of Apprenticeship Training," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 114(3), pages 756-779, 09.
  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, University of Zurich, Institute for Strategy and Business Economics (ISU) 0047, University of Zurich, Institute for Strategy and Business Economics (ISU).

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