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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. Working paper series / Department of Economics 141, University of Zurich.

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 skillreplacing 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 skillreplacing 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
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:E24, I24, J24, J62, O33
Uncontrolled Keywords:Apprentices, educational system, employment polarization, technology adoption
Language:English
Date:18 February 2014
Deposited On:19 Feb 2014 13:34
Last Modified:15 Aug 2017 07:26
Series Name:Working paper series / Department of Economics
Number of Pages:48
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp141.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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