IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp11374.html
   My bibliography  Save this paper

Are Apprenticeships Business Cycle Proof?

Author

Listed:
  • Lüthi, Samuel

    () (University of Bern)

  • Wolter, Stefan C.

    () (University of Bern)

Abstract

Although there is evidence that apprenticeship training can ease the transition of youth into the labour market and thereby reduce youth unemployment, many policy makers fear that firms will cut their apprenticeship expenditures during economic crises, thus exacerbating the problem of youth unemployment. Using recent panel data of Swiss cantons and dynamic regression models, we examine the relationship between new apprenticeships and the business cycle. The empirical results suggest that economic shocks induce a rather small, pro-cyclical immediate response in the apprenticeship market. However, within a year after the shock, firms compensate for their immediate reaction, with the result that no permanent effect is observable.

Suggested Citation

  • Lüthi, Samuel & Wolter, Stefan C., 2018. "Are Apprenticeships Business Cycle Proof?," IZA Discussion Papers 11374, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11374
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp11374.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Samuel Muehlemann & Stefan Wolter, 2014. "Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-22, December.
    2. Banerjee, Anindya & Dolado, Juan J. & Galbraith, John W. & Hendry, David, 1993. "Co-integration, Error Correction, and the Econometric Analysis of Non-Stationary Data," OUP Catalogue, Oxford University Press, number 9780198288107.
    3. Lindley, Robert M, 1975. "The Demand for Apprentice Recruits by the Engineering Industry, 1951-71," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 1-24, February.
    4. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    5. Maria Zumbuehl & Stefan C. Wolter, 2017. "Wie weiter nach der obligatorischen Schule? Bildungsentscheidungen und -verlaeufe der PISA-Kohorte 2012 in der Schweiz," Economics of Education Working Paper Series 0127, University of Zurich, Department of Business Administration (IBW).
    6. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    7. Jaik, Katharina & Wolter, Stefan C., 2016. "Lost in Transition: The Influence of Locus of Control on Delaying Educational Decisions," IZA Discussion Papers 10191, Institute of Labor Economics (IZA).
    8. Suzanna De Boef & Luke Keele, 2008. "Taking Time Seriously," American Journal of Political Science, John Wiley & Sons, vol. 52(1), pages 184-200, January.
    9. 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.
    10. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    11. Guido Baldi & Imke Brüggemann-Borck & Thore Schlaak, 2014. "The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany," Journal of Labor Research, Springer, vol. 35(4), pages 412-422, December.
    12. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    13. Muehlemann, Samuel & Strupler Leiser, Mirjam, 2018. "Hiring costs and labor market tightness," Labour Economics, Elsevier, vol. 52(C), pages 122-131.
    14. Jan Erik Askilden & Øivind Anti Nilsen, 2005. "Apprentices And Young Workers: A Study Of The Norwegian Youth Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 1-17, February.
    15. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muehlemann, Samuel & Pfeifer, Harald & Wittek, Bernhard, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," Research Memorandum 020, Maastricht University, Graduate School of Business and Economics (GSBE).
    2. Mühlemann, Samuel & Pfeifer, Harald & Wittek, Bernhard, 2020. "The Effect of Business Cycle Expectations on the German Apprenticeship Market: Estimating the Impact of COVID-19," IZA Discussion Papers 13368, Institute of Labor Economics (IZA).
    3. Muehlemann, Samuel & Pfeifer, Harald & Wittek, Bernhard, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," ROA Research Memorandum 008, Maastricht University, Research Centre for Education and the Labour Market (ROA).

    More about this item

    Keywords

    apprenticeship training; VET; education; business cycle; error correction model;

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

    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:iza:izadps:dp11374. 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: (Holger Hinte). General contact details of provider: http://www.iza.org .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.