Recruitment of Apprentices over the Business Cycles
Employment of apprentices seems to follow the business cycle. An interesting question is whether this is based on an investment policy where firms recruit when the labour market indicates skill shortage. Alternatively it may be that the firms are myopic and basically hire apprentices in booming periods since they can get hold of subsidised labour to substitute for skilled workers in short supply. We develop an investment model of training with several types of labour.
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