Distinguishing Companies with Different Apprenticeship Training Motivations – Evidence from German Establishment Data

In the theoretical literature on why companies train apprentices three different approaches are usually distinguished: the investment, the substitution and the reputation motive. The aim of our paper is to empirically identify whether a company follows one or the other motive or even more than one training motive. We derive identifying variables from the respective theoretical models and estimate econometric models which help to reliably classify companies with respect to their training motives. The distribution of the companies across the respective motivations we receive is similar to results that can be derived from studies with detailed cost benefit training information. However, unlike our data set the latter data sets have only a limited set of non-training variables which restricts the possibilities of further analyzing training matters in conjunction with the broader company or industry picture. Using detailed company information we show that the influence of foreign owned firms and work councils on training participation is critical dependent on the training motivation of the companies.