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The Effectiveness of Apprenticeship Training - a within track comparison of workplace-based and school-based vocational training in Hungary

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  • Daniel Horn

    () (Institute of Economics, Center for Economic and Regional Studies, Hungarian Academy of Sciences and ELTE, Department of Economics)

Abstract

Although apprenticeship training has been praised for its effectiveness in smoothing the school-to-work transition of non-college bound students, most studies rely on cross country or cross track comparisons. This study compares apprenticeship training students with non-apprentices within educational track using a rich database and a unique set of observable individual level characteristics as well as local labor market fixed effects to control for the potential selection bias. The results show that there are no significant differences in employment chances between apprentices and non-apprentices within just a year after graduation. Although, in small subsamples of the population, significant differences can be found, these are most likely due unobserved heterogeneity. However, even if these observed differences are unbiased, they are more likely due to the superior screening of the larger firms rather than their superior training.

Suggested Citation

  • Daniel Horn, 2014. "The Effectiveness of Apprenticeship Training - a within track comparison of workplace-based and school-based vocational training in Hungary," Budapest Working Papers on the Labour Market 1405, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  • Handle: RePEc:has:bworkp:1405
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    References listed on IDEAS

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    1. Daron Acemoglu & Jörn-Steffen Pischke, 1998. "Why Do Firms Train? Theory and Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 113(1), pages 79-119.
    2. Alet, Elodie & Bonnal, Liliane, 2011. "Vocational schooling and educational success: comparing apprenticeship to full-time vocational high-school," TSE Working Papers 27239, Toulouse School of Economics (TSE).
    3. Wolter, Stefan C. & Ryan, Paul, 2011. "Apprenticeship," Handbook of the Economics of Education, Elsevier.
    4. Eric A. Hanushek & Guido Schwerdt & Ludger Woessmann & Lei Zhang, 2017. "General Education, Vocational Education, and Labor-Market Outcomes over the Lifecycle," Journal of Human Resources, University of Wisconsin Press, pages 48-87.
    5. Klaus Pforr, 2011. "Implementation of a multinomial logit model with fixed effects," German Stata Users' Group Meetings 2011 03, Stata Users Group.
    6. Sylvie Mendès & Catherine Sofer, 2004. "Apprenticeship versus vocational school: a comparison of performances," Chapters,in: Human Capital Over the Life Cycle, chapter 6 Edward Elgar Publishing.
    7. Christian Dustmann & Uta Schönberg, 2012. "What Makes Firm-Based Vocational Training Schemes Successful? The Role of Commitment," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 36-61, April.
    8. Gary S. Becker, 1994. "Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education (3rd Edition)," NBER Books, National Bureau of Economic Research, Inc, number beck94-1, January.
    9. Stevens, Margaret, 1994. "An Investment Model for the Supply of Training by Employers," Economic Journal, Royal Economic Society, vol. 104(424), pages 556-570, May.
    10. Kathrin Bertschy & M. Alejandra Cattaneo & Stefan C. Wolter, 2009. "PISA and the Transition into the Labour Market," LABOUR, CEIS, vol. 23(s1), pages 111-137, March.
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    More about this item

    Keywords

    apprenticeship training; employment; screening; school-to-work transition; panel data;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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