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Supply shocks in the market for apprenticeship training

Samuel Muehlemann (), Gerard Pfann, Harald Pfeifer () and Hans Dietrich
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Gerard Pfann: RS: GSBE Theme Learning and Work, RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Creativity, Innovation & Entrepreneurship , Organisation,Strategy & Entrepreneurship

No 13, ROA Research Memorandum from Maastricht University, Research Centre for Education and the Labour Market (ROA)

Abstract: We present a model with heterogeneous inputs and constant elasticity of substitution to examine the possible effects of a supply shock in the market for apprenticeship training. The model’s predictions are tested using data from a German high school reform that led to a one-time increase in the supply of highly educated apprentices. A difference-in-differences estimation strategy exploits regional variation in the timing of implementation, and an instrumental variable approach identifies the supply shock effects. We find that apprenticeship contracts among individuals with a high school degree increased by 7.8%, while apprentice wages were unaffected by the supply shock. Moreover, we find no evidence of substitution effects, as the number of training contracts among individuals with a lower-level school degree remained unchanged. Our model predicts that such effects may occur when wages are sticky for apprentices with a high level of education relative to their productivity, which signals inefficiencies in the market for apprenticeship training.

JEL-codes: I21 J20 (search for similar items in EconPapers)
Date: 2020-12-17
New Economics Papers: this item is included in nep-lma
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https://cris.maastrichtuniversity.nl/ws/files/60665422/ROA_RM_2020_13.pdf (application/pdf)

Related works:
Journal Article: Supply Shocks in the Market for Apprenticeship Training (2022) Downloads
Working Paper: Supply Shocks in the Market for Apprenticeship Training (2020) Downloads
Working Paper: Supply shocks in the market for apprenticeship training (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umaror:2020013

DOI: 10.26481/umaror.2020013

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