Header

UZH-Logo

Maintenance Infos

Why do firms train apprentices? The net cost puzzle reconsidered


Mohrenweiser, J; Zwick, T (2009). Why do firms train apprentices? The net cost puzzle reconsidered. Labour Economics, 16(6):631-637.

Abstract

This paper analyses the impact of increasing the share of apprentices at the cost of the share of unskilled or semi-skilled employees on establishment performance. We use representative matched employer–employee panel data and correct for estimation biases. We show that an increase of the apprentice share in trade, commercial, craft or construction occupations has a positive impact on establishment performance. Establishments that increase the apprentice share in manufacturing occupations face a negative impact on performance, however. These results shed a new light on the stylised fact that apprenticeship training always leads to net costs during the apprenticeship period in Germany: we argue that establishments only hire apprentices at a cost if their skills are relatively specific, their retention rate is high and skilled employees are hard to hire.

Abstract

This paper analyses the impact of increasing the share of apprentices at the cost of the share of unskilled or semi-skilled employees on establishment performance. We use representative matched employer–employee panel data and correct for estimation biases. We show that an increase of the apprentice share in trade, commercial, craft or construction occupations has a positive impact on establishment performance. Establishments that increase the apprentice share in manufacturing occupations face a negative impact on performance, however. These results shed a new light on the stylised fact that apprenticeship training always leads to net costs during the apprenticeship period in Germany: we argue that establishments only hire apprentices at a cost if their skills are relatively specific, their retention rate is high and skilled employees are hard to hire.

Statistics

Citations

19 citations in Web of Science®
24 citations in Scopus®
Google Scholar™

Altmetrics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:December 2009
Deposited On:02 Feb 2010 20:08
Last Modified:06 Dec 2017 23:27
Publisher:Elsevier
ISSN:0927-5371
Publisher DOI:https://doi.org/10.1016/j.labeco.2009.08.004
Related URLs:http://nbn-resolving.de/urn:nbn:de:bsz:352-opus-59660
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1113713

Download

Full text not available from this repository.
View at publisher