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Apprenticeship, vocational training, and early labor market outcomes -- evidence from East and West Germany

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  • Regina T. Riphahn
  • Michael Zibrowius

Abstract

We study the returns to apprenticeship and vocational training for three early labor market outcomes all measured at age 25 for East and West German youths: non-employment (i.e. unemployment or out of the labor force), permanent fulltime employment, and wages. We find strong positive effects of apprenticeship and vocational training. There are no significant differences for different types of vocational training, minor differences between East and West Germany and males and females, and no significant changes in the returns over time. Instrumental variable estimations confirm the regression results. The positive returns hold up even in poor labor market situations.

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  • Regina T. Riphahn & Michael Zibrowius, 2016. "Apprenticeship, vocational training, and early labor market outcomes -- evidence from East and West Germany," Education Economics, Taylor & Francis Journals, vol. 24(1), pages 33-57, February.
    • Handle: RePEc:taf:edecon:v:24:y:2016:i:1:p:33-57
    DOI: 10.1080/09645292.2015.1027759
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    Cited by:

    1. Caroline Neuber-Pohl & Damiano Pregaldini & Uschi Backes-Gellner & Sandra Dummert & Harald Pfeifer, 2023. "How negative labor supply shocks affect training in firms: Lessons from opening the Swiss-German border," Economics of Education Working Paper Series 0203, University of Zurich, Department of Business Administration (IBW), revised Nov 2023.
    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. Ilse Tobback & Dieter Verhaest & Stijn Baert, 2020. "Student Access to Apprenticeships: Evidence from a Vignette Experiment," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 59(3), pages 435-465, July.
    4. Bentolila, Samuel & Cabrales, Antonio & Jansen, Marcel, 2023. "Does Dual Vocational Education and Training Pay Off?," IZA Discussion Papers 16688, Institute of Labor Economics (IZA).
    5. Chiara Zisler & Damiano Pregaldini & Uschi Backes-Gellner, 2023. "Opening doors for immigrants: The importance of occupational and workplace-based cultural skills for successful labor market entry," Economics of Education Working Paper Series 0204, University of Zurich, Department of Business Administration (IBW).
    6. Schumann, Mathias, 2017. "The effects of minimum wages on firm-financed apprenticeship training," Labour Economics, Elsevier, vol. 47(C), pages 163-181.
    7. Haverkamp Katarzyna & Seibert Holger & Wesling Mirko, 2020. "Sektorale und berufsspezifische Ausbildungsstrategien und Übergangsmuster nach der dualen Ausbildung," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 69(1), pages 44-68, May.

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