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Employment polarization and the role of the apprenticeship system

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  • Michelle Rendall
  • Franziska J. Weiss

Abstract

This paper studies the effects of the apprenticeship system on innovation and labor market polarization. A stylized model with two key features is developed: (1) apprentices are more productive due to industry-specific training, but (2) from the firm’s perspective, when training apprentices, technological innovation is costly since training becomes obsolete. Thus, apprentices correlate with slower adoption of skillreplacing technologies, but also less employment polarization. We test this hypothesis on German regions given local variation in apprenticeship systems until 1976. The results shows no employment polarization related to apprentices, but similar displacement of non-apprentices as in the US.

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Bibliographic Info

Paper provided by Department of Economics - University of Zurich in its series ECON - Working Papers with number 141.

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Date of creation: Feb 2014
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Handle: RePEc:zur:econwp:141

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Keywords: Apprentices; educational system; employment polarization; technology adoption;

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  1. Wößmann, Ludger & Hanushek, Eric A. & Zhang, Lei, 2012. "General Education, Vocational Education, and Labor-Market Outcomes over the Life-Cycle," Munich Reprints in Economics 19675, University of Munich, Department of Economics.
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