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An Empirical Analysis of the Decision to Train Apprentices

Author

Listed:
  • Samuel Muehlemann
  • Juerg Schweri
  • Rainer Winkelmann
  • Stefan C. Wolter

Abstract

It is a widely held belief that apprenticeship training represents a net investment for training firms, the cost of which needs to be recouped after the training period. A new firm-level data set for Switzerland reveals large variation in net costs across firms and, remarkably, negative net costs for 60 per cent of all firms. We use these data to estimate the effect of net costs on the number of apprentices hired by a firm. The results show that the costs have a significant impact on the training decision but no significant influence on the number of 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 number of available training places. Copyright 2007 The Authors; Journal compilation 2007 CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd..

Suggested Citation

  • Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2007. "An Empirical Analysis of the Decision to Train Apprentices," LABOUR, CEIS, vol. 21(3), pages 419-441, September.
    • Handle: RePEc:bla:labour:v:21:y:2007:i:3:p:419-441
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    References listed on IDEAS

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    1. Majumdar, Sumon, 2007. "Market conditions and worker training: How does it affect and whom?," Labour Economics, Elsevier, vol. 14(1), pages 1-23, January.
    2. Niederalt, Michael & Schnabel, Claus & Kaiser, Christian, 2001. "Betriebliches Ausbildungsverhalten zwischen Kosten-Nutzen-Kalkül und gesellschaftlicher Verantwortung: Einflussfaktoren der Ausbildungsintensität von deutschen Betrieben," Discussion Papers 7, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    3. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
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    6. Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, vol. 7, pages 249-264, August.
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    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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