IDEAS home Printed from https://ideas.repec.org/p/iso/educat/0203.html
   My bibliography  Save this paper

How negative labor supply shocks affect training in firms: Lessons from opening the Swiss-German border

Author

Listed:
  • Caroline Neuber-Pohl
  • Damiano Pregaldini
  • Uschi Backes-Gellner
  • Sandra Dummert
  • Harald Pfeifer

Abstract

By exploiting a labor market reform causing an outflow of German workers to Switzerland, we examine the effect of negative labor supply shocks on training in firms using the market for apprenticeships as an example. Analysis of administrative data reveals that the reform led to more apprentices in German firms despite a decrease in apprentice wages. This can be explained by a standard two-factor production model where firms substitute outflowing skilled workers with more apprentices; setting lower wages is possible because of a rising supply of apprentices owing to substantially improved employment prospects after border openings.

Suggested Citation

  • 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.
    • Handle: RePEc:iso:educat:0203
    as

    Download full text from publisher

    File URL: http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0203_lhwpaper.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Samuel Muehlemann & Harald Pfeifer & Bernhard Wittek, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," Economics of Education Working Paper Series 0171, University of Zurich, Department of Business Administration (IBW).
    2. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages 1-10.
    3. repec:iab:iabfme:200502(en is not listed on IDEAS
    4. Dauth, Wolfgang & Eppelsheimer, Johann, 2020. "Preparing the sample of integrated labour market biographies (SIAB) for scientific analysis," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 54(1), pages .10(1-10).
    5. Samuel Lüthi & Stefan C. Wolter, 2020. "Are apprenticeships business cycle proof?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 156(1), pages 1-11, December.
    6. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," KOF Working papers 21-495, KOF Swiss Economic Institute, ETH Zurich.
    7. Dicarlo, Emanuele, 2022. "How Do Firms Adjust to Negative Labor Supply Shocks? Evidence from Migration Outflows," IZA Discussion Papers 14994, Institute of Labor Economics (IZA).
    8. Dorner, Matthias & Görlitz, Katja, 2020. "Training, wages and a missing school graduation cohort," Ruhr Economic Papers 858, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Maria Esther Oswald-Egg & Michael Siegenthaler, 2021. "Train drain? Access to skilled foreign workers and firms' provision of training," Economics of Education Working Paper Series 0186, University of Zurich, Department of Business Administration (IBW).
    10. repec:iab:iabjlr:v:54:i:1:p:art.10 is not listed on IDEAS
    11. Bernhard H. Wittek & Samuel Muehlemann, 2021. "The consequences of EU eastern enlargement on human capital accumulation and wages in Germany," Economics of Education Working Paper Series 0184, University of Zurich, Department of Business Administration (IBW).
    12. Frodermann, Corinna & Schmucker, Alexandra & Seth, Stefan & Vom Berge, Philipp, 2021. "Sample of Integrated Labour Market Biographies (SIAB) 1975-2019," FDZ Datenreport. Documentation on Labour Market Data 202101_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. repec:iab:iabfda:202101(en is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martin Kroczek & Philipp Kugler & Anne Zühlke, 2022. "Erwerbsverläufe und Einkommensentwicklung in der Pflege," IAW Discussion Papers 137, Institut für Angewandte Wirtschaftsforschung (IAW).
    2. Moritz Drechsel‐Grau & Andreas Peichl & Kai D. Schmid & Johannes F. Schmieder & Hannes Walz & Stefanie Wolter, 2022. "Inequality and income dynamics in Germany," Quantitative Economics, Econometric Society, vol. 13(4), pages 1593-1635, November.
    3. Christina Langer & Simon Wiederhold, 2023. "The Value of Early-Career Skills," CESifo Working Paper Series 10288, CESifo.
    4. Hannah Illing, 2023. "Crossing Borders: Labor Market Effects of European Integration," ECONtribute Discussion Papers Series 221, University of Bonn and University of Cologne, Germany.
    5. Bachmann, Ronald & Demir, Gökay & Green, Colin & Uhlendorff, Arne, 2022. "The Role of Within-Occupation Task Change in Wage Development," VfS Annual Conference 2022 (Basel): Big Data in Economics 264113, Verein für Socialpolitik / German Economic Association.
    6. Simon Wiederhold & Christina Langer, 2023. "The Value of Early-Career Skills," CID Working Papers 143a, Center for International Development at Harvard University.
    7. Illing, Hannah, 2023. "Crossing Borders: Labor Market Effects of European Integration," IZA Discussion Papers 15930, Institute of Labor Economics (IZA).
    8. Bachmann, Ronald & Martinez Flores, Fernanda & Rulff, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage von BA-Daten und der Verdienststrukturerhebung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 262219.
    9. Bachmann, Ronald & Martinez Flores, Fernanda & Rulf, Christian, 2022. "Die Lohnlücke in der Zeitarbeit: Eine empirische Analyse auf Grundlage der Integrierten Erwerbsbiografien und der Verdienststrukturerhebung," RWI Materialien 153, RWI - Leibniz-Institut für Wirtschaftsforschung.
    10. Rude, Britta & Giesing, Yvonne, 2022. "Technological Change and Immigration - A Race for Talent or of Displaced Workers," VfS Annual Conference 2022 (Basel): Big Data in Economics 264093, Verein für Socialpolitik / German Economic Association.
    11. Hannah Illing & Johannes Schmieder & Simon Trenkle, "undated". "The Gender Gap in Earnings Losses After Job Displacement," CRC TR 224 Discussion Paper Series crctr224_2022_381, University of Bonn and University of Mannheim, Germany.
    12. Heiko Stüber & Wolfgang Dauth & Johann Eppelsheimer, 2023. "A guide to preparing the sample of integrated labour market biographies (SIAB, version 7519 v1) for scientific analysis," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-11, December.
    13. Virginia Sondergeld & Katharina Wrohlich, 2023. "Women in management and the gender pay gap," CEPA Discussion Papers 66, Center for Economic Policy Analysis.
    14. Niklas Gohl, 2023. "Working Longer, Working Stronger? The Forward-Looking Effects of Increasing the Retirement Age on (Un)employment Behaviour," BSE Discussion Papers 0013, Berlin School of Economics.
    15. Sebastian Siegloch & Nils Wehrhöfer & Tobias Etzel, 2022. "Spillover, Efficiency and Equity Effects of Regional Firm Subsidies," ECONtribute Discussion Papers Series 210, University of Bonn and University of Cologne, Germany.
    16. Nassal, Lea & Paul, Marie, 2021. "Couples, Careers, and Spatial Mobility," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242370, Verein für Socialpolitik / German Economic Association.
    17. Daniel Goller & Stefan C. Wolter, 2021. "“Too shocked to search” The COVID-19 shutdowns’ impact on the search for apprenticeships," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 157(1), pages 1-15, December.
    18. Kamila Cygan-Rehm, 2022. "Lifetime Consequences of Lost Instructional Time in the Classroom: Evidence from Shortened School Years," CESifo Working Paper Series 9892, CESifo.
    19. Fackler, Daniel & Stegmaier, Jens & Upward, Richard, 2023. "Safety net or helping hand? The effect of job search assistance and compensation on displaced workers," IWH Discussion Papers 18/2023, Halle Institute for Economic Research (IWH).
    20. Egger, Hartmut & Jahn, Elke & Kornitzky, Stefan, 2022. "How does the position in business group hierarchies affect workers’ wages?," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 244-263.

    More about this item

    Keywords

    Negative labor supply shock; training effects after worker outflow; wage effects; training incentives; apprenticeship training supply and demand;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iso:educat:0203. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/isuzhch.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Brunner (email available below). General contact details of provider: https://edirc.repec.org/data/isuzhch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.