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Do firms benefit from apprenticeship investments?

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  • Robert Lerman

    (American University, USA, and IZA, Germany)

Abstract

Are apprenticeships valuable for firms? Economists once thought that firms do not pay to develop occupational skills that workers could use in other, often competing, firms. Now, researchers recognize that most firms benefit from investing in apprenticeship training. Firms gain from the apprentice’s contributions to production, reduced turnover and training costs, and more certainty that all workers have the same high levels of expertise.

Suggested Citation

  • Robert Lerman, 2014. "Do firms benefit from apprenticeship investments?," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-55, May.
    • Handle: RePEc:iza:izawol:journl:y:2014:n:55
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    References listed on IDEAS

    as
    1. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, in: Erik Hanushek & Stephen Machin & Ludger Woessmann (ed.), Handbook of the Economics of Education, edition 1, volume 3, chapter 11, pages 521-576, Elsevier.
    2. Mohrenweiser, Jens & Zwick, Thomas, 2009. "Why do firms train apprentices? The net cost puzzle reconsidered," Labour Economics, Elsevier, vol. 16(6), pages 631-637, December.
    3. Lerman, Robert I., 2013. "Skill Development in Middle Level Occupations: The Role of Apprenticeship Training," IZA Policy Papers 61, Institute of Labor Economics (IZA).
    4. Thomas J. Kane & Dietmar Harhoff, 1997. "Is the German apprenticeship system a panacea for the U.S. labor market?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(2), pages 171-196.
    5. Dockery, M & Kelly, R & Norris, K . & Stromback, T, 2001. "Costs and benefits of new apprenticeships," Australian Bulletin of Labour, National Institute of Labour Studies, vol. 27(3), pages 192-203.
    6. Stefan Bauernschuster & Oliver Falck & Stephan Heblich, 2009. "Training and Innovation," Journal of Human Capital, University of Chicago Press, vol. 3(4), pages 323-353.
    7. Muehlemann, Samuel & Pfeifer, Harald & Walden, Günter & Wenzelmann, Felix & Wolter, Stefan C., 2010. "The financing of apprenticeship training in the light of labor market regulations," Labour Economics, Elsevier, vol. 17(5), pages 799-809, October.
    8. Eichhorst, Werner & Rodríguez-Planas, Núria & Schmidl, Ricarda & Zimmermann, Klaus F., 2012. "A Roadmap to Vocational Education and Training Systems Around the World," IZA Discussion Papers 7110, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Dorner, Matthias & Görlitz, Katja, 2020. "Training, wages and a missing school graduation cohort," Ruhr Economic Papers 858, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Sofie Cabus & Eszter Nagy, 2017. "Performance of Hungarian firms: are apprentices an asset or a liability? Evidence from a unique matched employer-employee dataset," Budapest Working Papers on the Labour Market 1706, Institute of Economics, Centre for Economic and Regional Studies.
    3. Werner Eichhorst & Núria Rodríguez-Planas & Ricarda Schmidl & Klaus F. Zimmermann, 2015. "A Road Map to Vocational Education and Training in Industrialized Countries," ILR Review, Cornell University, ILR School, vol. 68(2), pages 314-337, March.
    4. Kassim S. Mwitondi & Raed A. Said, 2021. "Dealing with Randomness and Concept Drift in Large Datasets," Data, MDPI, vol. 6(7), pages 1-19, July.
    5. Lerman, Robert I. & Loprest, Pamela J. & Kuehn, Daniel, 2020. "Training for Jobs of the Future: Improving Access, Certifying Skills, and Expanding Apprenticeship," IZA Policy Papers 166, Institute of Labor Economics (IZA).
    6. Sofie Cabus & Eszter Nagy, 2021. "On the productivity effects of training apprentices in Hungary: evidence from a unique matched employer–employee dataset," Empirical Economics, Springer, vol. 60(4), pages 1685-1718, April.

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    More about this item

    Keywords

    training; skills; apprenticeships;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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