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The Cost and Benefits of Work-based Learning

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  • Samuel Mühlemann

    (University of Munich (LMU))

Abstract

Dual apprenticeship training is increasingly seen as an important educational track that provides youth with the skills necessary for a smooth transition into the labour market. However, providing skills at the workplace rather than at (vocational) school comes at a cost for firms that hire such apprentices. Nonetheless, as apprentices become part of a firm’s workforce, they also generate a benefit from working productively. This paper provides a theoretical framework and the latest empirical evidence about a firm’s costs and benefits that are associated with offering dual apprenticeship training. While many aspects of such training are determined by external factors such as government policies, training regulations, and labour market institutions, firms can still influence many other aspects. The available empirical evidence suggests that there is no single optimal model of dual apprenticeship training. However, given the differences in the institutional setting across countries, adjusting key framework conditions can allow training firms to generate a sufficiently high return on their training investments. The main parameters affecting the cost–benefit ratio are apprentice wages, amount of training provided at the workplace, apprenticeship duration, and the manner in which firms integrate apprentices into the production process (to perform both skilled and unskilled tasks). An important prerequisite to successful apprenticeships, however, is also an adequate supply of suitable apprentices, which in turn (among other factors) depends on the training quality at the workplace, certification of the acquired skills, and future wages and career opportunities from obtaining a vocational qualification. La formation en alternance est de plus en plus considérée comme une filière importante qui dote les jeunes des compétences dont ils ont besoin pour entrer sans difficulté sur le marché du travail. La formation sur le lieu de travail plutôt que dans un établissement d’enseignement (professionnel) a toutefois un coût pour les entreprises qui font appel à des apprentis. Néanmoins, étant donné que les apprentis font partie des effectifs de l’entreprise, ils génèrent aussi des bénéfices en travaillant de façon productive. Le présent document fournit un cadre théorique et les dernières données empiriques sur les coûts et les bénéfices liés au fait, pour les entreprises, de proposer des formations en alternance. Si de nombreux aspects de la formation sont déterminés par des facteurs externes comme les politiques gouvernementales, les réglementations applicables à la formation, et les institutions du marché du travail, les entreprises peuvent encore influencer de nombreux autres aspects. D’après les données empiriques disponibles, il n’existe pas de modèle optimal unique de formation en alternance. Compte tenu des différences des environnements institutionnels entre les pays, le fait d’ajuster certaines conditions clés du cadre permet aux entreprises formatrices de générer un rendement suffisamment élevé de leur investissement dans la formation. Les principaux paramètres qui influencent le rapport coûts-bénéfices sont les salaires des apprentis, le volume de formation fourni sur le lieu de travail, la durée de l’apprentissage, et la façon dont les entreprises intègrent les apprentis dans le processus de production (pour effectuer des tâches à la fois qualifiées et non qualifiées). Une importante condition préalable à la réussite de l’apprentissage, toutefois, est aussi une offre suffisante d’apprentis compétents, laquelle dépend à son tour (entre autres facteurs) de la qualité de la formation sur le lieu de travail, de la validation des compétences acquises, et des perspectives futures de salaire et de carrière qu’offre un diplôme professionnel.

Suggested Citation

  • Samuel Mühlemann, 2016. "The Cost and Benefits of Work-based Learning," OECD Education Working Papers 143, OECD Publishing.
  • Handle: RePEc:oec:eduaab:143-en
    DOI: 10.1787/5jlpl4s6g0zv-en
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    Cited by:

    1. Samuel Muehlemann & Harald Pfeifer, 2023. "Evaluating apprenticeship training programs for firms," IZA World of Labor, Institute of Labor Economics (IZA), pages 506-506, March.
    2. Muehlemann, Samuel & Dietrich, Hans & Pfann, Gerard & Pfeifer, Harald, 2022. "Supply Shocks in the Market for Apprenticeship Training," Economics of Education Review, Elsevier, vol. 86(C).
    3. Carolin Linckh & Caroline Neuber-Pohl & Harald Pfeifer, 2023. "The employment effects of raising negotiated minimum wages for apprentices," Economics of Education Working Paper Series 0202, University of Zurich, Department of Business Administration (IBW).
    4. Mühlemann, Samuel & Pfann, Gerard A. & Pfeifer, Harald & Dietrich, Hans, 2018. "The Effects of Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," IZA Discussion Papers 11264, Institute of Labor Economics (IZA).
    5. Sofie Cabus & Eszter Nagy, 2017. "Performance of Hungarian firms: are apprentices an asset or a liability? Evidence from a unique matched employer-employee dataset," Budapest Working Papers on the Labour Market 1706, Institute of Economics, Centre for Economic and Regional Studies.
    6. Pfann, Gerard & Muehlemann, Samuel & Pfeifer, Harald & Dietrich, Hans, 2018. "Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," CEPR Discussion Papers 12669, C.E.P.R. Discussion Papers.
    7. Sofie Cabus & Eszter Nagy, 2021. "On the productivity effects of training apprentices in Hungary: evidence from a unique matched employer–employee dataset," Empirical Economics, Springer, vol. 60(4), pages 1685-1718, April.

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