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http://hdl.handle.net/10419/24713
  
Title:Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered PDF Logo
Authors:Mohrenweiser, Jens
Zwick, Thomas
Issue Date:2008
Series/Report no.:ZEW Discussion Papers 08-019
Abstract:This paper investigates the short-term costs and benefits of apprenticeship training in Germany. It calls into question the popular stylised fact that apprenticeship training always leads to net costs during the apprenticeship period. We analyse the impact of the proportion of different occupational groups of apprentices on firm performance. We use representative matched employer?employee panel data that allow us to correct for different sources of estimation bias. We show that the proportion of apprentices in trade, commercial, craft and construction occupations has a direct positive impact on firm performance: the companies cover their training costs immediately. In contrast, companies with apprentices in the manufacturing occupations face net training costs during the apprenticeship period but gain by the long-term employment of its graduate apprentices.
Subjects:apprenticeship training
performance
panel data estimation
JEL:C33
J24
D24
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des ZEW
ZEW Discussion Papers

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