Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered

Jens Mohrenweiser and Thomas Zwick

No 08-019, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper investigates the short-term costs and benefits of apprenticeship training in Germany. It calls into question the popular stylised fact that apprenticeship training always leads to net costs during the apprenticeship period. We analyse the impact of the proportion of different occupational groups of apprentices on firm performance. We use representative matched employer?employee panel data that allow us to correct for different sources of estimation bias. We show that the proportion of apprentices in trade, commercial, craft and construction occupations has a direct positive impact on firm performance: the companies cover their training costs immediately. In contrast, companies with apprentices in the manufacturing occupations face net training costs during the apprenticeship period but gain by the long-term employment of its graduate apprentices.

Keywords: apprenticeship training; performance; panel data estimation (search for similar items in EconPapers)
JEL-codes: C33 D24 J24 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-bec, nep-hrm and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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https://www.econstor.eu/bitstream/10419/24713/1/dp08019.pdf (application/pdf)

Related works:
Journal Article: Why do firms train apprentices? The net cost puzzle reconsidered (2009)
Working Paper: Why do Firms Train Apprentices? The Net Cost Puzzle Reconsidered (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:7228

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