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The Value of Early-Career Skills

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  • Christina Langer
  • Simon Wiederhold

Abstract

We develop novel measures of early-career skills that are more detailed, comprehensive, and labor-market-relevant than existing skill proxies. We exploit that skill requirements of apprenticeships in Germany are codified in state-approved, nationally standardized apprenticeship plans. These plans provide more than 13,000 different skills and the exact duration of learning each skill. Following workers over their careers in administrative data, we find that cognitive, social, and digital skills acquired during apprenticeship are highly – yet differently – rewarded. We also document rising returns to digital and social skills since the 1990s, with a more moderate increase in returns to cognitive skills.

Suggested Citation

  • Christina Langer & Simon Wiederhold, 2023. "The Value of Early-Career Skills," Working Papers 222, Bavarian Graduate Program in Economics (BGPE).
    • Handle: RePEc:bav:wpaper:222_langerwiederhold
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    2. Guo, Yuchen Mo & Falck, Oliver & Langer, Christina & Lindlacher, Valentin & Wiederhold, Simon, 2024. "Training, Automation, and Wages: Worker-Level Evidence," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302366, Verein für Socialpolitik / German Economic Association.
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    More about this item

    Keywords

    returns to skills; apprenticeship plans; labor market; earnings; early-career skills;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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