Premature Apprenticeship Terminations: An Economic Analysis

Donata Bessey () and Uschi Backes-Gellner ()

No 2, Economics of Education Working Paper Series from University of Zurich, Institute for Strategy and Business Economics (ISU)

Abstract: This paper presents empirical evidence on premature terminations of apprenticeship contracts in Germany. Our novel approach uses human capital theory with a regional component as a clear-cut framework for the analysis. It derives testable hypotheses on individual decisions to finish an investment in human capital, namely, their apprenticeship training. Using a German data set, we find some evidence for the appropriateness of our theory, especially with respect to the short-term cost of an apprenticeship. Regional impact factors also seem to have a decisive impact on the decision to drop out from vocational training. We conclude that economic incentives, also long-term ones, seem to play a decisive role in individuals’ decisions whether to finish their training or not.

Keywords: Apprenticeship training; human capital; regional labor markets (search for similar items in EconPapers)
JEL-codes: J24 I21 J32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-hrm
Date: 2007-08
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Persistent link: http://EconPapers.repec.org/RePEc:iso:educat:0002

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