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So similar and yet so different: A comparative analysis of a firm's net costs and post-apprenticeship training benefits in Austria and Switzerland

Author

Listed:
  • Luca Moretti

    (University of Bern)

  • Martin Mayerl

    (Austrian Institute for Research on Vocational Training (OeIBF), Vienna)

  • Samuel Muehlemann

    (LMU Munich, IZA Bonn)

  • Peter Schloegl

    (Alpen-Adria-Universitaet Klagenfurt & Austrian Institute for Research on Vocational Training (OeIBF), Vienna)

  • Stefan C. Wolter

    (University of Bern & CESifo Munich & IZA Bonn)

Abstract

The authors compare a firm's net cost and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many similarities but some critical institutional differences. On average, a Swiss firm generates an annual net benefit of Euro 3,400 from training an apprentice, whereas a firm in Austria incurs net costs of Euro 4,200. The impetus for this difference is largely a higher relative apprentice pay in Austria. However, compared with Swiss firms, Austrian firms generate a higher post-training return by retaining a higher share of apprentices and savings on future hiring costs.

Suggested Citation

  • Luca Moretti & Martin Mayerl & Samuel Muehlemann & Peter Schloegl & Stefan C. Wolter, 2017. "So similar and yet so different: A comparative analysis of a firm's net costs and post-apprenticeship training benefits in Austria and Switzerland," Economics of Education Working Paper Series 0137, University of Zurich, Department of Business Administration (IBW), revised Apr 2018.
    • Handle: RePEc:iso:educat:0137
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    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0137_lhwpaper.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Apprenticeship training; cost-benefit analysis; initial VET; hiring costs;
    All these keywords.

    JEL classification:

    • 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
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

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