Are Apprenticeships Business Cycle Proof?

Samuel Lüthi () and Stefan Wolter

No 11374, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Although there is evidence that apprenticeship training can ease the transition of youth into the labour market and thereby reduce youth unemployment, many policy makers fear that firms will cut their apprenticeship expenditures during economic crises, thus exacerbating the problem of youth unemployment. Using recent panel data of Swiss cantons and dynamic regression models, we examine the relationship between new apprenticeships and the business cycle. The empirical results suggest that economic shocks induce a rather small, pro-cyclical immediate response in the apprenticeship market. However, within a year after the shock, firms compensate for their immediate reaction, with the result that no permanent effect is observable.

Keywords: education; VET; apprenticeship training; business cycle; error correction model (search for similar items in EconPapers)
JEL-codes: E24 E32 I21 J18 J44 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2018-02
New Economics Papers: this item is included in nep-mac
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Published - published in: Swiss Journal of Economics and Statistics, 2020, 156, Article number: 3 (2020)

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Related works:
Journal Article: Are apprenticeships business cycle proof? (2020)
Working Paper: Are Apprenticeships Business Cycle Proof? (2018)
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