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The Effect of Choice Options in Training Curricula on the Supply of and Demand for Apprenticeships

Author

Listed:
  • Jansen, Anika

    (BIBB)

  • de Grip, Andries

    (ROA, Maastricht University)

  • Kriechel, Ben

    (Economix Research & Consulting)

Abstract

Building on Lazear's skill weights approach, we study the effect of having more or less heterogeneity in the training curriculum on supply of and demand for apprenticeship training. Modernizations of training curricula provide us with a quasi-experimental setting as these modernizations can be seen as a relatively exogenous shock. We argue that firms will train more apprentices when they have more choice options in the training curriculum because of (1) the higher productivity of graduates who have acquired more skills that are relevant for the firm and (2) firms' higher market power in the wage bargaining process with graduates. We test this hypothesis on data on the supply of apprenticeship places in Germany in all occupations from 2004 to 2014. We find that a more heterogeneous curriculum increases both firms' supply of and students' demand for training places.

Suggested Citation

  • Jansen, Anika & de Grip, Andries & Kriechel, Ben, 2016. "The Effect of Choice Options in Training Curricula on the Supply of and Demand for Apprenticeships," IZA Discussion Papers 9697, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9697
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    References listed on IDEAS

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    1. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 4, number 4, June.
    2. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 11, pages 521-576, Elsevier.
    3. Mühlemann, Samuel & Wolter, Stefan C. & Wüest, Adrian, 2009. "Apprenticeship Training and the Business Cycle," IZA Discussion Papers 4460, Institute of Labor Economics (IZA).
    4. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-562, October.
    5. Troltsch, Klaus & Walden, Günter, 2010. "Beschäftigungsentwicklung und Dynamik des betrieblichen Ausbildungsangebotes : eine Analyse für den Zeitraum 1999 bis 2008," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 43(2), pages 107-124.
    6. Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), 2011. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 3, number 3, June.
    7. Smits, W., 2007. "Industry-specific or generic skills? Conflicting interests of firms and workers," Labour Economics, Elsevier, vol. 14(3), pages 653-663, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    apprenticeship training; curriculum; skill-weights approach;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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