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Apprenticeship training in Germany - investment or productivity driven?

Author

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  • Zwick, Thomas
Abstract
"The German dual apprenticeship system has come under pressure in recent years because enterprises have not been willing to provide a sufficient number of apprenticeship positions. An argument that is frequently put forward is that the gap could be closed if more firms were willing to incur net costs during the training period. This paper investigates on the basis of representative data whether German enterprises do indeed incur net costs on average during the apprenticeship period, i.e. whether the impact of an increase in the share of apprentices on contemporary profits is negative. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into account possible endogeneity of training intensity and unobserved heterogeneity in the profit estimation by employing panel system GMM methods. An increase in the share of apprentices has no effect on profits. This can be interpreted as a first indication that most establishments in Germany do not invest more in apprentices than their productivity effects during the apprenticeship period." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Zwick, Thomas, 2007. "Apprenticeship training in Germany - investment or productivity driven?," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 193-204.
    • Handle: RePEc:iab:iabzaf:v:40:i:2-3:p:193-204
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    References listed on IDEAS

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    Cited by:

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    3. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio & Massimiliano Iommi, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement Methods and Comparative Results," Economics Program Working Papers 12-03, The Conference Board, Economics Program.
    4. Regina Dionisius & Samuel Muehlemann & Harald Pfeifer & Günter Walden & Felix Wenzelmann & Stefan C. Wolter, 2009. "Costs and Benefits of Apprenticeship Training. A Comparison of Germany and Switzerland," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 55(1), pages 7-37.
    5. Dietrich, Hans & Gerner, Hans-Dieter, 2007. "The determinants of apprenticeship training with particular reference to business expectations," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 221-233.
    6. Spyros Arvanitis, 2008. "Are Firm Innovativeness and Firm Age Relevant for the Supply of Vocational Training? - A Study Based on Swiss Micro Data," KOF Working papers 08-198, KOF Swiss Economic Institute, ETH Zurich.
    7. Dietrich, Hans & Gerner, Hans-Dieter, 2007. "The determinants of apprenticeship training with particular reference to business expectations," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 221-233.
    8. Haskel, Jonathan & Iommi, Massimiliano, 2012. "Intangible Capital and Growth in Advanced Economies: Measurement and Comparative Results," CEPR Discussion Papers 9061, C.E.P.R. Discussion Papers.
    9. Hinz, Tina, 2016. "Personnel policy adjustments when apprentice positions are unfilled: Evidence from German establishment data," Discussion Papers 99, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    10. Jirjahn, Uwe & Mohrenweiser, Jens, 2013. "Active owners and the failure of newly adopted works councils," ZEW Discussion Papers 13-080, ZEW - Leibniz Centre for European Economic Research.
    11. Goeggel, Kathrin & Zwick, Thomas, 2009. "Good occupation - bad occupation? The quality of apprenticeship training," ZEW Discussion Papers 09-024, ZEW - Leibniz Centre for European Economic Research.
    12. Carol Coorado & Jonathan Haskel & Cecilia Iona Lasinio & Massimiliano Iommi, 2012. "Intangible Capital and Growth Strategies for Advanced Economies: Measurement and Comparative Results," Working Papers LuissLab 12101, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    13. Pardesi, Mantej, 2024. "Productivity convergence and firm’s training strategy," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    14. Pardesi, Mantej, 2024. "Productivity Convergence and Firm’s Training Strategy," Research Memorandum 003, Maastricht University, Graduate School of Business and Economics (GSBE).
    15. Mohrenweiser, Jens & Zwick, Thomas, 2009. "Why do firms train apprentices? The net cost puzzle reconsidered," Labour Economics, Elsevier, vol. 16(6), pages 631-637, December.
    16. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio & Massimiliano Iommi, 2022. "Intangible Capital and Modern Economies," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 3-28, Summer.
    17. Abuselidze, George & Beridze, Lasha, 2019. "Financing models of vocational education and its impact on the economy: Problems and perspectives," EconStor Conference Papers 225211, ZBW - Leibniz Information Centre for Economics.
    18. Iyiola Oluwole Oladele & Osibanjo Omotayo Adewale, 2012. "Assessing the Value of International Workers: A Case of Shell Petroleum Development Company in Nigeria," Scientific Annals of Economics and Business, Sciendo, vol. 59(1), pages 141-153, July.
    19. Dietrich, Hans & Gerner, Hans-Dieter, 2007. "The determinants of apprenticeship training with particular reference to business expectations," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 221-233.
    20. Regula Geel & Johannes Mure & Uschi Backes-Gellner, 2011. "Specificity of occupational training and occupational mobility: an empirical study based on Lazear’s skill-weights approach," Education Economics, Taylor & Francis Journals, vol. 19(5), pages 519-535, January.
    21. Jens Mohrenweiser & Uschi Backes‐Gellner, 2010. "Apprenticeship training: for investment or substitution?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(5), pages 545-562, August.
    22. Hiller, Tobias, 2017. "Quantitative overeducation and cooperative game theory," Economics Letters, Elsevier, vol. 152(C), pages 36-40.

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