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Training, wages and a missing school graduation cohort

Author

Listed:
  • Dorner, Matthias

    (IAB)

  • Görlitz, Katja

    (HdBA ; IZA ; RWI)

Abstract

"This study analyzes the effects of a missing high school graduation cohort on firms’ training provision and trainees’ wages. An exogenous school reform varying at the state and year level caused the missing cohort to occur. Using administrative social security data on all trainees and training firms, we show that firms provide less training by reducing their overall number of hired apprentices. We also show that the pool of firms that offer training in the year of the missing cohort shifts towards a higher share of low wage firms. After keeping firm characteristics constant, the findings indicate that the missing cohort increases training wages measured at the start of training. Further analyses shed light on the opposite case of dual cohorts, which we find to increase training provision and to decrease training wages. The evidence also shows that high and low wage firms differ in how they adjust training provision in response to a dual cohort." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Dorner, Matthias & Görlitz, Katja, 2020. "Training, wages and a missing school graduation cohort," IAB-Discussion Paper 202028, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:202028
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    File URL: https://doku.iab.de/discussionpapers/2020/dp2820.pdf
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    Cited by:

    1. Muehlemann, Samuel & Dietrich, Hans & Pfann, Gerard & Pfeifer, Harald, 2022. "Supply Shocks in the Market for Apprenticeship Training," Economics of Education Review, Elsevier, vol. 86(C).
    2. 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.
    3. Dorner, Matthias & Görlitz, Katja & Jahn, Elke J., 2024. "The impact of a missing school graduation cohort on the training market," Economics of Education Review, Elsevier, vol. 103(C).
    4. Sun, Shengmin & Chen, Jiawei & Chen, Jiaying, 2023. "Cohort crowding in education and employment: Evidence from China's compulsory education law," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 391-411.

    More about this item

    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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