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The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany

Guido Baldi, Imke Brüggemann-Borck () and Thore Schlaak

Journal of Labor Research, 2014, vol. 35, issue 4, 412-422

Abstract: The benefits of dual apprenticeship programs are usually discussed in the context of reducing structural unemployment rates, especially among the young. Related to this, the long-run benefits of dual apprenticeship programs are extensively analyzed in the literature. However, empirical evidence regarding the short-run effects of the business cycle on the number of apprenticeships is scarce. In this paper, we use panel-data at the German federal states level ranging from 1999 through 2012 to analyze the effects of the business cycle on the number of new apprenticeship contracts. Using different sample periods and model specifications, we do not find a robust and significant effect of the business cycle on apprenticeships. Hence, the apprenticeship system seems to dampen the volatility of youth unemployment. Copyright Springer Science+Business Media New York 2014

Keywords: Economic fluctuations; Education; Hiring; Unemployment; E32; I21; J63 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s12122-014-9192-6

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