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A Structural Model of Demand for Apprentices

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Author Info

  • Samuel Muehlemann

    ()
    (Economic Department, University of Berne)

  • Juerg Schweri

    ()
    (Swiss Pedagogical Institute for Vocational Education)

  • Rainer Winkelmann

    ()
    (Socioeconomic Institute, University of Zurich)

  • Stefan C. Wolter

    ()
    (Swiss Coordination Centre for Research in Education, University of Berne)

Abstract

It is a widely held opinion that apprenticeship training represents a net investment for training firms, and that therefore firms only train if they have the possibility to recoup these investments after the training period. A recent study using a new firm-level dataset for Switzerland showed, however, that for 60 percent of the firms, the apprenticeship training itself does not result in net cost. In this context it seems important to examine the question whether the potential net cost of training (during the training period) are a major determinant for the demand for apprentices. Different count data models, in particular hurdle models, are used to estimate the effect of net cost on the demand for apprentices. The results show that the net cost have a significant impact on the training decision but no significant influence on the demand for apprentices, once the firm has decided to train. For policy purposes, these results indicate that subsidies for firms that already train apprentices would not boost the demand for apprentices.

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File URL: http://www.soi.uzh.ch/research/wp/2005/wp0504.pdf
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Bibliographic Info

Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0504.

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Length: 25 pages
Date of creation: Feb 2005
Date of revision:
Publication status: published in Labour 21(3), pp. 419–441, 2007
Handle: RePEc:soz:wpaper:0504

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Keywords: Apprenticeship training; count data; probit-Poisson-log-normal model; Switzerland;

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References

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  1. Klaus Stöger & Rudolf Winter-Ebmer, 2001. "Lehrlingsausbildung in Österreich: Welche Betriebe bilden Lehrlinge aus?," Economics working papers 2001-10, Department of Economics, Johannes Kepler University Linz, Austria.
  2. 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.
  3. Daron Acemoglu & Jorn-Steffen Pischke, 1998. "Beyond Becker: Training in Imperfect Labor Markets," NBER Working Papers 6740, National Bureau of Economic Research, Inc.
  4. Wolter, Stefan C. & Mühlemann, Samuel & Schweri, Jürg, 2003. "Why Some Firms Train Apprentices and Many Others Do Not," IZA Discussion Papers 916, Institute for the Study of Labor (IZA).
  5. 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.
  6. Acemoglu, Daron & Pischke, Jörn-Steffen, 1996. "Why do Firms Train? Theory and Evidence," CEPR Discussion Papers 1460, C.E.P.R. Discussion Papers.
  7. Rainer Winkelmann, 2004. "Health care reform and the number of doctor visits-an econometric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 455-472.
  8. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  9. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
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Citations

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Cited by:
  1. Dennis Gaertner, 2007. "Monopolistic Screening under Learning By Doing," SOI - Working Papers 0718, Socioeconomic Institute - University of Zurich.
  2. Spyros Arvanitis & Tobias Stucki, 2008. "Training Propensity of Start-ups in Switzerland - A Study Based on Data for the Start-up Cohort 1996-97," KOF Working papers 08-199, KOF Swiss Economic Institute, ETH Zurich.
  3. Spyros Arvanitis, 2008. "Are Firm Innovativeness and Firm Age Relevant for the Supply of Vocational Training? – A Study Based on Swiss Micro Data," Economics of Education Working Paper Series 0036, University of Zurich, Institute for Strategy and Business Economics (ISU).
  4. Stefan Boes & Markus Lipp & Rainer Winkelmann, 2005. "Money Illusion Under Test," SOI - Working Papers 0514, Socioeconomic Institute - University of Zurich.
  5. Jens Mohrenweiser & Uschi Backes-Gellner, 2006. "Distinguishing Companies with Different Apprenticeship Training Motivations – Evidence from German Establishment Data," Economics of Education Working Paper Series 0007, University of Zurich, Institute for Strategy and Business Economics (ISU).
  6. Stefan Boes, 2007. "Nonparametric Analysis of Treatment Effects in Ordered Response Models," SOI - Working Papers 0709, Socioeconomic Institute - University of Zurich.
  7. Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," Economics of Education Working Paper Series 0001, University of Zurich, Institute for Strategy and Business Economics (ISU).
  8. Helga Fehr-Duda & Adrian Bruhin & Thomas Epper & Renate Schubert, 2010. "Rationality on the rise: Why relative risk aversion increases with stake size," Journal of Risk and Uncertainty, Springer, vol. 40(2), pages 147-180, April.
  9. Sandra Hanslin, 2008. "The effect of trade openness on optimal government size under endogenous firm entry," SOI - Working Papers 0802, Socioeconomic Institute - University of Zurich.

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