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Apprenticeship Training in Germany? Investment or Productivity Driven?

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  • Thomas Zwick

Abstract

The German dual apprenticeship system came under pressure in recent years because enterprises were not willing to offer a sufficient number of apprenticeship positions. A frequently made argument is that the gap could be closed if more firms would be willing to incur net costs during the training period. This paper investigates for the first time whether German enterprises on average indeed incur net costs during the apprenticeship period, i.e. if the impact of an increase in the share of apprentices on contemporary profits is negative. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into account possible endogeneity of training intensity and unobserved heterogeneity in the profit estimation by employing panel system GMM methods. An increase in the share of apprentices has no effect on profits. This can be interpreted as a first indication that most establishments in Germany do not invest more in apprentices than their productivity effects during the apprenticeship period. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-023.

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Date of creation: 2007
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Handle: RePEc:zbw:zewdip:5586

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Cited by:
  1. Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2009. "Costs and Benefits of Apprenticeship Training. A Comparison of Germany and Switzerland," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 55(1), pages 7-37.
  2. Spyros Arvanitis, 2008. "Are Firm Innovativeness and Firm Age Relevant for the Supply of Vocational Training? A Study Based on Swiss Micro Data," KOF Working papers 08-198, KOF Swiss Economic Institute, ETH Zurich.
  3. Goeggel, Kathrin & Zwick, Thomas, 2009. "Good occupation - bad occupation? The quality of apprenticeship training," ZEW Discussion Papers 09-024, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. repec:iab:iabzaf:v:40:i:2/3:p:221-233 is not listed on IDEAS
  5. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio & Massimiliano Iommi, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement Methods and Comparative Results," Economics Program Working Papers 12-03, The Conference Board, Economics Program.
  6. Jens Mohrenweiser & Uschi Backes-Gellner, 2010. "Apprenticeship training: for investment or substitution?," International Journal of Manpower, Emerald Group Publishing, vol. 31(5), pages 545-562, September.
  7. Jens Mohrenweiser & Thomas Zwick, 2008. "Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," Economics of Education Working Paper Series 0016, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Oct 2008.

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