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Good occupation - bad occupation? The quality of apprenticeship training

  • Goeggel, Kathrin
  • Zwick, Thomas

Small average wage effects of employer and/or occupation changes 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. Quality differences of apprenticeship quality between training firms that have been mainly discussed so far are small, however. This paper also explains differences between previous findings by comparing their estimation strategies. It demonstrates that selectivity into occupations and changers, unobserved heterogeneity between occupations, and the sample selection matter and proposes several improvements in the estimation technique to measure apprenticeship quality.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 09-024.

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Date of creation: 2009
Date of revision:
Handle: RePEc:zbw:zewdip:09024
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  1. Clark, Damon & RenÈ Fahr, 2002. "The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship," Royal Economic Society Annual Conference 2002 52, Royal Economic Society.
  2. Mohrenweiser, Jens & Zwick, Thomas, 2008. "Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered," ZEW Discussion Papers 08-019, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. 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.
  4. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1992. "Earnings losses of displaced workers," Working Paper Series, Macroeconomic Issues 92-28, Federal Reserve Bank of Chicago.
  5. 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.
  6. Fersterer, Josef & Pischke, Jörn-Steffen & Winter-Ebmer, Rudolf, 2007. "Returns to Apprenticeship Training in Austria: Evidence from Failed Firms," CEPR Discussion Papers 6387, C.E.P.R. Discussion Papers.
  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. Fitzenberger, Bernd & Osikominu, Aderonke & Völter, Robert, 2005. "Imputation rules to improve the education variable in the IAB employment subsample," FDZ Methodenreport 200503_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  9. 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, CIBC Centre for Human Capital and Productivity Working Papers 20083, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  10. 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).
  11. 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.
  12. 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.
  13. Acemoglu, D. & Pischki, J.S., 1996. "Why Do Firms Train? Theory and Evidence," Working papers 96-7, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. repec:iab:iabmit:v:30:i:3:p:671-674 is not listed on IDEAS
  15. 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.
  16. 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.
  17. 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.
  18. 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.
  19. 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.
  20. Edward P. Lazear, 2003. "Firm-Specific Human Capital: A Skill-Weights Approach," NBER Working Papers 9679, National Bureau of Economic Research, Inc.
  21. 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.
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