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Employment prospects and firm-based training — Evidence from opening the Swiss-German border

Author

Listed:
  • Neuber-Pohl, Caroline
  • Pregaldini, Damiano
  • Backes-Gellner, Uschi
  • Dummert, Sandra
  • Pfeifer, Harald

Abstract

We study how improved wage opportunities for skilled workers affect firm-based training, using the 2002 opening of the Swiss labor market to German commuters as a natural experiment. The reform triggered a large outflow of skilled workers from German border regions, prompting firms to expand apprenticeship training. Using a Difference-in-Differences approach, we find a significant increase in the number of apprenticeships in affected firms in Germany despite unchanged apprentice wages. This pattern is consistent with an outward shift in apprentice supply: higher wages for skilled workers across the border made apprenticeships more attractive to young people. Our findings suggest that improvements in skilled workers’ wage prospects, rather than adjusting apprentice pay, may help to address training gaps and alleviate skill shortages.

Suggested Citation

  • Neuber-Pohl, Caroline & Pregaldini, Damiano & Backes-Gellner, Uschi & Dummert, Sandra & Pfeifer, Harald, 2026. "Employment prospects and firm-based training — Evidence from opening the Swiss-German border," Labour Economics, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:labeco:v:99:y:2026:i:c:s0927537125001721
    DOI: 10.1016/j.labeco.2025.102848
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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