Vocational Schools as an Instrument of Interregional Competition – Empirical Evidence from German Counties

Ivo Bischoff () and Julia Hauschildt ()
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Julia Hauschildt: University of Kassel

MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: The German apprenticeship system is widely known throughout the world. We analyze expenditures on vocational schools on county level using data from 213 West-German counties between 2001 and 2006. We use spatial econometrics to test for spatial correlation in counties’ expenditure on vocational schools but find no evidence that vocational schools serve as instrument in inter-county competition. While the theoretical literature suggests that spending should be higher for apprentices from small firms, we find a negative relationship between the share of apprentices from small firms and the expenditures per pupil. Expenditures are found to increase in the share of Christian Democrats in the county council.

Keywords: vocational schools; German apprenticeship system; local public finance; spatial econometrics (search for similar items in EconPapers)
JEL-codes: H75 R51 R58 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2017
New Economics Papers: this item is included in nep-dcm, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:201722

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