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Firm retention and productivity of apprentices

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  • Jérémy Hervelin

    (ZEW - Leibniz Centre for European Economic Research)

Abstract

This study investigates the retention rate of young people in firms that offer apprenticeship positions. While the majority of training firms hire apprentices with the aim of retaining them when the contract ends, only a small proportion of youths actually transition into full-time employment in the same firm. To explain this phenomenon, I rely on a tractable model that incorporates firm decision-making processes, enabling an analysis of the retention rate. By estimating the productivity distribution of apprentices based on observed wage data from French surveys, the findings indicate that training firms, on average, benefit more from separating from apprentices rather than hiring them as workers.

Suggested Citation

  • Jérémy Hervelin, 2025. "Firm retention and productivity of apprentices," Empirical Economics, Springer, vol. 68(3), pages 1265-1280, March.
    • Handle: RePEc:spr:empeco:v:68:y:2025:i:3:d:10.1007_s00181-024-02667-z
    DOI: 10.1007/s00181-024-02667-z
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    More about this item

    Keywords

    Firm retention; Productivity; Apprenticeship; Maximum likelihood;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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