Supply Shocks in the Market for Apprenticeship Training

Samuel Muehlemann, Gerard Pfann, Harald Pfeifer and Hans Dietrich
Additional contact information
Hans Dietrich: IAB Nuremberg

No 143, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: We present a model with heterogeneous inputs and constant elasticity of substitution to examine the possible effects of a supply shock in the market for apprenticeship training. The model's predictions are tested using data from a German high school reform that led to a one-time increase in the supply of highly educated apprentices. A difference-in-differences estimation strategy exploits regional variation in the timing of implementation, and an instrumental variable approach identifies the supply shock effects. We find that apprenticeship contracts among individuals with a high school degree increased by 7.8%, while apprentice wages were unaffected by the supply shock. Moreover, we find no evidence of substitution effects, as the number of training contracts among individuals with a lower-level school degree remained unchanged. Our model predicts that such effects may occur when wages are sticky for apprentices with a high level of education relative to their productivity, which signals inefficiencies in the market for apprenticeship training.

Keywords: Apprenticeship market; labor supply shock; school reform (search for similar items in EconPapers)
JEL-codes: I21 J20 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2018-01, Revised 2020-10
New Economics Papers: this item is included in nep-edu, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0143_lhwpaper.pdf (application/pdf)

Related works:
Journal Article: Supply Shocks in the Market for Apprenticeship Training (2022)
Working Paper: Supply shocks in the market for apprenticeship training (2020)
Working Paper: Supply shocks in the market for apprenticeship training (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0143

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