Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/282779 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 16652
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
By exploiting a labor market reform causing an outflow of German workers to Switzerland, we examine the effect of negative labor supply shocks on training in firms using the market for apprenticeships as an example. Analysis of administrative data reveals that the reform led to more apprentices in German firms despite a decrease in apprentice wages. This can be explained by a standard two-factor production model where firms substitute outflowing skilled workers with more apprentices; setting lower wages is possible because of a rising supply of apprentices owing to substantially improved employment prospects after border openings.
Subjects: 
negative labor supply shock
training effects after worker outflow
wage effects
training incentives
apprenticeship training supply and demand
JEL: 
J21
J22
J61
R23
Document Type: 
Working Paper

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