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The impact of a missing school graduation cohort on the training market

Matthias Dorner, Katja Görlitz and Elke J. Jahn

Economics of Education Review, 2024, vol. 103, issue C

Abstract: This study analyzes whether the training market responds to a reduced supply of trainees by decreasing the number of hired trainees and increasing their wages based on administrative data. The empirical identification uses exogenous regional and time variation in the occurrence of a missing school graduation cohort that shifts the supply of potential trainees downwards. The results show that the missing cohort decreases new hires by 10 % and raises wages by 1 %. Further robustness results reveal that the opposite case of excess supply (that is caused by dual cohorts) increases hirings and decreases wages. Our results also document that high and low wage firms respond differently to the supply shocks. While only high wage firms stop hiring when labor supply decreases, it is the low wage firms who hire a larger number of trainees in case of excess supply.

Keywords: Training wages; Hiring trainees; Missing cohort; High and low wage firms; Firm heterogeneity; Dual cohort (search for similar items in EconPapers)
JEL-codes: J21 J24 J31 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecoedu:v:103:y:2024:i:c:s0272775724000748

DOI: 10.1016/j.econedurev.2024.102580

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