Mohrenweiser, Jens Wydra-Sommaggio, Gaby Zwick, Thomas
Year of Publication:
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2014: Evidenzbasierte Wirtschaftspolitik - Session: Firms and Wages D02-V1
The possibility of adverse selection by training firms is common theoretical argument for company-sponsored investments in general skills. The paper derives a public and a private signal after apprenticeship training and shows that training firms are able to positively select graduates they keep. The public signal has a stronger impact on entry wages of employer changers than for stayers and private signals shows exactly the opposite pattern.