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Firms' method of pay and the retention of apprentices


Rinawi, Miriam; Backes-Gellner, Uschi (2019). Firms' method of pay and the retention of apprentices. Oxford Economic Papers:1-23.

Abstract

The new training literature views regulated labour markets as critical for firms’ willingness to participate in apprenticeship training. These regulations allow training firms to retain their apprenticeship graduates at the end of the training period and recoup training costs. Yet, in spite of an only loosely regulated labour market, many Swiss firms offer and pay for training. Using representative data from a large employer–employee survey, we investigate whether these firms use performance pay to retain their graduates. We find that both the magnitude and the likelihood of performance pay are significantly related to a firm’s retention success.

Abstract

The new training literature views regulated labour markets as critical for firms’ willingness to participate in apprenticeship training. These regulations allow training firms to retain their apprenticeship graduates at the end of the training period and recoup training costs. Yet, in spite of an only loosely regulated labour market, many Swiss firms offer and pay for training. Using representative data from a large employer–employee survey, we investigate whether these firms use performance pay to retain their graduates. We find that both the magnitude and the likelihood of performance pay are significantly related to a firm’s retention success.

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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:2019
Deposited On:08 Aug 2019 09:39
Last Modified:25 Sep 2019 00:39
Publisher:Oxford University Press
ISSN:0030-7653
OA Status:Closed
Publisher DOI:https://doi.org/10.1093/oep/gpy074
Other Identification Number:merlin-id:17940

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