The more they spend, the more I earn? Firms' training investments and post-training wages of apprentices
Harald Pfeifer () and
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Hans Dietrich: Institute for Employment Research (IAB), Nuremberg
Felix Wenzelmann: Federal Institute for Vocational Education and Training (BIBB), Bonn
No 116, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)
In this paper, we examine the relation between a firm's training investment and the post-training wages of apprenticeship graduates. For our analysis, we first calculate a training investment indicator using detailed information about firm-level training costs. We then merge the firm-level data with individual-level administrative data on employment and wages of apprenticeship graduates. Using regression models controlling for selection into employment, we find that a firm investment in training relates positively with graduates' post-training wages. Doubling a firm's training investment leads to a wage mark-up of about 2.8%. This result is robust to different specifications. However, we find that especially graduates from low-investment firms benefit from a higher training investment. The wage mark-up for graduates from firms with already high investment levels is small and statistically not significant.
Keywords: Training investment; post-training wages; apprenticeship system (search for similar items in EconPapers)
JEL-codes: J24 J31 J62 (search for similar items in EconPapers)
Pages: 29 pages
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Persistent link: https://EconPapers.repec.org/RePEc:iso:educat:0116
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