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Firms' method of pay and the retention of apprentices


Rinawi, Miriam; Backes-Gellner, Uschi (2020). Firms' method of pay and the retention of apprentices. Swiss Leading House "Economics of Education" Working Paper 104, University of Zurich.

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-related pay to retain their graduates. We find that both the magnitude and the likelihood of performance-related 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-related pay to retain their graduates. We find that both the magnitude and the likelihood of performance-related pay are significantly related to a firm's retention success.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Language:English
Date:1 July 2020
Deposited On:22 Aug 2019 13:25
Last Modified:18 Mar 2022 09:49
Series Name:Swiss Leading House "Economics of Education" Working Paper
OA Status:Green
Free access at:Official URL. An embargo period may apply.
Official URL:https://ideas.repec.org/p/iso/educat/0104.html
Related URLs:https://www.zora.uzh.ch/id/eprint/172254/
Other Identification Number:merlin-id:12008

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