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Good Occupation – Bad Occupation? The Quality of Apprenticeship Training

  • Kathrin Goeggel

    (Federal Ministry of Labour and Social Affairs, Berlin)

  • Thomas Zwick

    (LMU München)

Small average wage effects of employer and/or occupation changes after apprenticeship training mask large differences between occupation groups and apprentices with different schooling back-grounds. Apprentices in commerce and trading occupations strongly profit from an employer change. Employer and occupation changers in industrial occupations face large wage disadvantages, however. We are the first to analyse these differences while those quality differences between training firms that have been widely studied before are small. This paper also explains differences between previous findings by comparing their empirical estimation strategies. It demonstrates that selectivity into occupations and changers, unobserved heterogeneity between occupations, and sample selection matter. Finally, it proposes several improvements in the estimation technique to measure apprenticeship quality.

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File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0045_lhwpaper.pdf
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Paper provided by University of Zurich, Institute for Strategy and Business Economics (ISU) in its series Economics of Education Working Paper Series with number 0045.

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Length: 35 pages
Date of creation: Jun 2009
Date of revision:
Handle: RePEc:iso:educat:0045
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  1. Bernd Fitzenberger & Aderonke Osikominu & Robert Völter, 2006. "Imputation Rules to Improve the Education Variable in the IAB Employment Subsample," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 126(3), pages 405-436.
  2. Jacobson, Louis S & LaLonde, Robert J & Sullivan, Daniel G, 1993. "Earnings Losses of Displaced Workers," American Economic Review, American Economic Association, vol. 83(4), pages 685-709, September.
  3. Clark, Damon & Fahr, René, 2001. "The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship," IZA Discussion Papers 378, Institute for the Study of Labor (IZA).
  4. A. Werwatz, 1997. "Mobility after Apprenticeship- How effective is the German apprenticeship system?," SFB 373 Discussion Papers 1997,75, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  5. Spiros Bougheas & Yannis Georgellis, 2004. "Early Career Mobility and Earnings Profiles of German Apprentices: Theory and Empirical Evidence," LABOUR, CEIS, vol. 18(2), pages 233-263, 06.
  6. Stefan Bender & Till von Wachter, 2006. "In the Right Place at the Wrong Time: The Role of Firms and Luck in Young Workers' Careers," American Economic Review, American Economic Association, vol. 96(5), pages 1679-1705, December.
  7. Regula Geel & Johannes Mure & Uschi Backes-Gellner, 2011. "Specificity of occupational training and occupational mobility: an empirical study based on Lazear’s skill-weights approach," Education Economics, Taylor & Francis Journals, vol. 19(5), pages 519-535, January.
  8. Thomas Zwick, 2007. "Apprenticeship Training in Germany? Investment or Productivity Driven?," ZEW Discussion Papers 07-023, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  9. Fersterer, Josef & Pischke, Jörn-Steffen & Winter-Ebmer, Rudolf, 2007. "Returns to Apprenticeship Training in Austria: Evidence from Failed Firms," Economics Series 215, Institute for Advanced Studies.
  10. 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.
  11. Tomas Korpi & Antje Mertens, 2003. "Training Systems and Labor Mobility: A Comparison between Germany and Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 597-617, December.
  12. Maxim Poletaev & Chris Robinson, 2008. "Human Capital Specificity: Evidence from the Dictionary of Occupational Titles and Displaced Worker Surveys 1984-2000," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20083, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
  13. Jens Mohrenweiser & Thomas Zwick, 2008. "Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," Economics of Education Working Paper Series 0016, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Oct 2008.
  14. Edward P. Lazear, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," NBER Working Papers 9679, National Bureau of Economic Research, Inc.
  15. David Soskice, 1994. "Reconciling Markets and Institutions: The German Apprenticeship System," NBER Chapters, in: Training and the Private Sector: International Comparisons, pages 25-60 National Bureau of Economic Research, Inc.
  16. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  17. Jens Mohrenweiser & Uschi Backes-Gellner, 2008. "Apprenticeship Training – What for? Investment in Human Capital or Substitute for Cheap Labour?," Economics of Education Working Paper Series 0017, University of Zurich, Institute for Strategy and Business Economics (ISU).
  18. Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
  19. repec:iab:iabmit:v:30:i:3:p:671-674 is not listed on IDEAS
  20. Rainer Winkelmann, 1996. "Employment prospects and skill acquisition of apprenticeship-trained workers in Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(4), pages 658-672, July.
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