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Employment polarization and the role of the apprenticeship system


Rendall, Michelle; Weiss, Franziska J (2014). Employment polarization and the role of the apprenticeship system. UBS Center Working Paper Series 10, University of Zurich : UBS International Center of Economics in Society.

Abstract

This paper studies the effects of the apprenticeship system on innovation and labor market polarization. A stylized model with two key features is developed: (1) apprentices are more productive due to industry-specific training, but (2) from the firm’s perspective, when training apprentices, technological innovation is costly since training becomes obsolete. Thus, apprentices correlate with slower adoption of skill-replacing technologies, but also less employment polarization. We test this hypothesis on German regions given local variation in apprenticeship systems until 1976. The results shows no employment polarization related to apprentices, but similar displacement of non-apprentices as in the US.

Abstract

This paper studies the effects of the apprenticeship system on innovation and labor market polarization. A stylized model with two key features is developed: (1) apprentices are more productive due to industry-specific training, but (2) from the firm’s perspective, when training apprentices, technological innovation is costly since training becomes obsolete. Thus, apprentices correlate with slower adoption of skill-replacing technologies, but also less employment polarization. We test this hypothesis on German regions given local variation in apprenticeship systems until 1976. The results shows no employment polarization related to apprentices, but similar displacement of non-apprentices as in the US.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
03 Faculty of Economics > UBS International Center of Economics in Society
Working Paper Series > UBS Center Working Paper Series
Dewey Decimal Classification:330 Economics
JEL Classification:E24, J24, O33, R23
Uncontrolled Keywords:Apprentices, educational system, employment polarization, technology adoption
Language:English
Date:August 2014
Deposited On:04 Nov 2014 16:18
Last Modified:15 Aug 2017 18:35
Series Name:UBS Center Working Paper Series
Number of Pages:34
ISSN:2296-2778
Official URL:http://www.ubscenter.uzh.ch/static/wp/uceswp010.pdf
Related URLs:http://www.ubscenter.uzh.ch/en/publications/workingpapers

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