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Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland

Author

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  • Samuel Muehlemann

    (Institute of Economics, University of Berne)

  • Stefan C. Wolter

    (Institute of Economics, University of Berne)

Abstract

This paper uses regional variation in labor markets, the industry structure and the educational system to explain the training decisions of firms. Using a representative firm-level data set, the results show that firms are less likely to offer training if the number of competing firms situated in the same geographical area is high. Furthermore, the supply of potential apprentices affects the training decision positively through an improved matching process. In addition, the expected ability of apprentices also has a positive impact, whereas a more developed system of full-time schooling options for school leavers reduces the likelihood of a firm to offer training.

Suggested Citation

  • Samuel Muehlemann & Stefan C. Wolter, 2006. "Regional Effects on Employer Provided Training: Evidence from Apprenticeship Training in Switzerland," Economics of Education Working Paper Series 0001, University of Zurich, Department of Business Administration (IBW).
  • Handle: RePEc:iso:educat:0001
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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. Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2005. "A Structural Model of Demand for Apprentices," CESifo Working Paper Series 1417, CESifo.
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    8. Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2007. "An Empirical Analysis of the Decision to Train Apprentices," LABOUR, CEIS, vol. 21(3), pages 419-441, September.
    9. Rainer Winkelmann, 1996. "Employment Prospects and Skill Acquisition of Apprenticeship-Trained Workers in Germany," ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
    10. Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, vol. 7(3), pages 249-264, August.
    11. Stevens, Margaret, 1994. "A Theoretical Model of On-the-Job Training with Imperfect Competition," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 537-562, October.
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    13. Edwin Leuven, 2005. "The Economics of Private Sector Training: A Survey of the Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 91-111, February.
    14. Stefan C. Wolter & Samuel Mühlemann & Jürg Schweri, 2006. "Why Some Firms Train Apprentices and Many Others Do Not," German Economic Review, Verein für Socialpolitik, vol. 7(3), pages 249-264, August.
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    Cited by:

    1. Schweri, Juerg & Mueller, Barbara, 2007. "Why has the share of training firms declined in Switzerland?," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 149-167.
    2. Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2009. "Costs and Benefits of Apprenticeship Training. A Comparison of Germany and Switzerland," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 55(1), pages 7-37.
    3. Spyros Arvanitis, 2008. "Are Firm Innovativeness and Firm Age Relevant for the Supply of Vocational Training? - A Study Based on Swiss Micro Data," KOF Working papers 08-198, KOF Swiss Economic Institute, ETH Zurich.
    4. John S Heywood & Uwe Jirjahn & Annika Pfister, 2020. "Product market competition and employer provided training in Germany [Technical change, inequality and the labor market]," Industrial and Corporate Change, Oxford University Press, vol. 29(2), pages 533-556.
    5. Giuseppe Croce & Emanuela Ghignoni, 2012. "Employer-provided Training and Knowledge Spillovers: Evidence from Italian Local Labour Markets," Regional Studies, Taylor & Francis Journals, vol. 46(3), pages 339-353, May.
    6. repec:dau:papers:123456789/179 is not listed on IDEAS
    7. Picchio, Matteo & van Ours, Jan C., 2011. "Market imperfections and firm-sponsored training," Labour Economics, Elsevier, vol. 18(5), pages 712-722, October.
    8. Schweri, Juerg & Mueller, Barbara, 2007. "Why has the share of training firms declined in Switzerland?," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 149-167.
    9. Sylvi Rzepka & Marcus Tamm, 2016. "Local employer competition and training of workers," Applied Economics, Taylor & Francis Journals, vol. 48(35), pages 3307-3321, July.
    10. Donata Bessey & Uschi Backes-Gellner, 2008. "Dropping out and revising educational decisions: Evidence from vocational education," Economics of Education Working Paper Series 0040, University of Zurich, Department of Business Administration (IBW).
    11. Donata Bessey & Uschi Backes-Gellner, 2007. "Premature Apprenticeship Terminations: An Economic Analysis," Economics of Education Working Paper Series 0002, University of Zurich, Department of Business Administration (IBW).
    12. Katja Görlitz & Joel Stiebale, 2011. "The Impact of Product Market Competition on Employers’ Training Investments. Evidence from German Establishment Panel Data," De Economist, Springer, vol. 159(1), pages 1-23, March.
    13. Sonedda, Daniela, 2018. "Human capital investment and job creation: the role of the education and production systems," MPRA Paper 91902, University Library of Munich, Germany.
    14. Corinna Kleinert & Alexander Vosseler & Uwe Blien, 2018. "Classifying vocational training markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 31-48, July.
    15. Spyros Arvanitis & Tobias Stucki, 2008. "Training Propensity of Start-ups in Switzerland - A Study Based on Data for the Start-up Cohort 1996-97," KOF Working papers 08-199, KOF Swiss Economic Institute, ETH Zurich.
    16. Hinz, Tina & Mohrenweiser, Jens, 2017. "The Effect of Regional Competition and Company-sponsored Training on the Productivity-Wage Wedge," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168292, Verein für Socialpolitik / German Economic Association.
    17. Stefan C. Wolter, 2008. "Ausbildungskosten und ‐nutzen und die betriebliche Nachfrage nach Lehrlingen," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(s1), pages 90-108, May.
    18. Jens Mohrenweiser & Uschi Backes-Gellner, 2006. "Distinguishing Companies with Different Apprenticeship Training Motivations – Evidence from German Establishment Data," Economics of Education Working Paper Series 0007, University of Zurich, Department of Business Administration (IBW).
    19. Jahn, Vera, 2015. "The Importance of Mittelstand Firms for Regional Apprenticeship Activity - Lessons for Policy -," Working Paper 158/2015, Helmut Schmidt University, Hamburg.
    20. Samuel Muehlemann, 2013. "Der Einfluss der Internationalisierung auf die arbeitsmarktorientierte Bildung," Economics of Education Working Paper Series 0092, University of Zurich, Department of Business Administration (IBW).
    21. Uschi Backes-Gellner & Johannes Mure, 2008. "The Swiss Leading House on Economics of Education, Firm Behaviour and Training Policies," Economics of Education Working Paper Series 0014, University of Zurich, Department of Business Administration (IBW).
    22. Heinz Hollenstein & Tobias Stucki, 2009. "Determinanten des Angebots an Lehrstellen – Der Einfluss von IKT, Organisation und Humankapital," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 3(1), pages 79-93, March.

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    More about this item

    Keywords

    apprenticeship training; regional labor markets;

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets

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