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Firms’ method of pay and the retention of apprentices

Author

Listed:
  • Miriam Rinawi
  • Uschi Backes-Gellner

Abstract

The new training literature views regulated labour markets as critical for firms’ willingness to participate in apprenticeship training. These regulations allow training firms to retain their apprenticeship graduates at the end of the training period and recoup training costs. Yet, in spite of an only loosely regulated labour market, many Swiss firms offer and pay for training. Using representative data from a large employer–employee survey, we investigate whether these firms use performance pay to retain their graduates. We find that both the magnitude and the likelihood of performance pay are significantly related to a firm’s retention success.

Suggested Citation

  • Miriam Rinawi & Uschi Backes-Gellner, 2020. "Firms’ method of pay and the retention of apprentices," Oxford Economic Papers, Oxford University Press, vol. 72(1), pages 269-291.
    • Handle: RePEc:oup:oxecpp:v:72:y:2020:i:1:p:269-291.
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    File URL: http://hdl.handle.net/10.1093/oep/gpy074
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    Cited by:

    1. Esther Mirjam Girsberger & Miriam Rinawi & Matthias Krapf, 2018. "Wages and employment: The role of occupational skills," Economics of Education Working Paper Series 0153, University of Zurich, Department of Business Administration (IBW).
    2. Harald Pfeifer & Uschi Backes-Gellner, 2017. "Another piece of the puzzle: Firms' investment in training as optimization of skills inventory," Economics of Education Working Paper Series 0136, University of Zurich, Department of Business Administration (IBW), revised Jun 2018.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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