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Do employment subsidies reduce early apprenticeship dropout?

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  • Fries, Jan
  • Göbel, Christian
  • Maier, Michael F.

Abstract

We evaluate the effect of the Apprenticeship Bonus, an employment subsidy programme, on early dropout of apprenticeship. Eligibility to the programme is restricted to school leavers who have actively searched for apprenticeship training to start immediately after leaving school, but were unsuccessful in finding a position. Our analysis is based on rich survey data that has been collected specifically for this study. Using this data, we describe the characteristics of school leavers who have searched for apprenticeship positions unsuccessfully directly leaving school and analyse the effect of the subsidy on the risk of apprenticeship dropout. Even though the subsidy provides strong incentives to prevent dropout, we do not find significant effects of the programme. Our finding suggests that financial incentives are not effective in increasing the probability to finish vocational in-firm training successfully.

Suggested Citation

  • Fries, Jan & Göbel, Christian & Maier, Michael F., 2013. "Do employment subsidies reduce early apprenticeship dropout?," ZEW Discussion Papers 13-053, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:13053
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    References listed on IDEAS

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    Cited by:

    1. Mohrenweiser Jens & Pfeiffer Friedhelm, 2015. "Coaching Disadvantaged Young People: Evidence from Firm Level Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 235(4-5), pages 459-473, August.
    2. Jens Mohrenweiser, 2013. "Which firms train disadvantaged youth?," Economics of Education Working Paper Series 0087, University of Zurich, Department of Business Administration (IBW).

    More about this item

    Keywords

    Apprenticeship; vocational training; subsidized employment; dropout;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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