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Are apprenticeships business cycle proof?

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  • Samuel Lüthi

    (University of Bern)

  • Stefan C. Wolter

    (Swiss Coordination Centre for Research in Economics of Education)

Abstract

Although there is evidence that apprenticeship training can ease the transition of youth into the labour market and thereby alleviate youth unemployment, many policymakers fear that firms will reduce the number of apprenticeship positions during economic crises, thus exacerbating the problem of youth unemployment. Using recent panel data of Swiss cantons and dynamic regression models, we examine the relationship between newly created apprenticeships and the business cycle. The empirical results suggest that economic shocks induce a pro-cyclical, moderate response in the apprenticeship market, both immediately and in subsequent years.

Suggested Citation

  • Samuel Lüthi & Stefan C. Wolter, 2020. "Are apprenticeships business cycle proof?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 156(1), pages 1-11, December.
  • Handle: RePEc:spr:sjecst:v:156:y:2020:i:1:d:10.1186_s41937-019-0047-1
    DOI: 10.1186/s41937-019-0047-1
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    References listed on IDEAS

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    Cited by:

    1. Lisa Simon, 2018. "Shocking Choice: Trade Shocks, Local Labor Markets and Vocational Occupation Choices," ifo Working Paper Series 281, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Thomsen, Stephan L. & Trunzer, Johannes, 2020. "Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment," GLO Discussion Paper Series 690, Global Labor Organization (GLO).
    3. Samuel Muehlemann & Harald Pfeifer & Bernhard Wittek, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," Economics of Education Working Paper Series 0171, University of Zurich, Department of Business Administration (IBW).
    4. Daniel Goller & Stefan C. Wolter, 2021. "“Too shocked to search” The COVID-19 shutdowns’ impact on the search for apprenticeships," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-15, December.
    5. Lisa Simon, 2019. "Mikroökonometrische Analysen der Determinanten von Individuellem Arbeitsmarkterfolg," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 83.
    6. Aepli, Manuel & Kuhn, Andreas, 2021. "Open labor markets and Firms’ substitution between training apprentices and hiring workers," Labour Economics, Elsevier, vol. 70(C).

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    More about this item

    Keywords

    Apprenticeship training; VET; Education; Business cycle; Error correction model;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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