Apprenticeship Training in Germany? Investment or Productivity Driven?

The German dual apprenticeship system came under pressure in recent years because enterprises were not willing to offer a sufficient number of apprenticeship positions. A frequently made argument is that the gap could be closed if more firms would be willing to incur net costs during the training period. This paper investigates for the first time whether German enterprises on average indeed incur net costs during the apprenticeship period, i.e. if the impact of an increase in the share of apprentices on contemporary profits is negative. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into account possible endogeneity of training intensity and unobserved heterogeneity in the profit estimation by employing panel system GMM methods. An increase in the share of apprentices has no effect on profits. This can be interpreted as a first indication that most establishments in Germany do not invest more in apprentices than their productivity effects during the apprenticeship period. --

Works Councils and the Productivity Impact of Direct Employee Participation

This paper measures the productivity impact of management-led participative establishment practices. On the basis of a representative German establishment data set, the IAB establishment panel, the study finds that the presence of team-work, a reduction of hierarchies and autonomous work groups in 1997 significantly increases average establishment productivity in 1997 – 2000. An endogeneous switching regression model takes the endogeneity of work councils into account and shows that the productivity effect can only be measured in establishments with works councils, i.e. employee induced participation. The estimation strategy controls for unobserved time invariant establishment heterogeneity by using a two-step system GMM panel regression approach. It simultaneously controls for endogeneity of participative work organization by using instrument variable regressions. --employee participation,works council,establishment productivity,panel regression

Why training older employees is less effective

This paper shows that training of older employees is less effective. Training effectiveness is measured with respect to key dimensions such as career development, earnings, adoption of new skills, flexibility or job security. Older employees also pursue less ambitious goals with their training participation. An important reason for these differences during the life cycle might be that firms do not offer the 'right' training forms and contents. Older employees get higher returns from informal and directly relevant training and from training contents that can be mainly tackled by crystallised abilities. Training incidence in the more effective training forms is however not higher for older employees. Given that other decisive variables on effectiveness such as training duration, financing and initiative are not sensitive to age, the wrong allocation of training contents and training forms therefore is critical for the lower effectiveness of training. --Training,Older Employees,Linked-Employer-Employee Data

Apprenticeship training in Germany - investment or productivity driven?

"The German dual apprenticeship system has come under pressure in recent years because enterprises have not been willing to provide a sufficient number of apprenticeship positions. An argument that is frequently put forward is that the gap could be closed if more firms were willing to incur net costs during the training period. This paper investigates on the basis of representative data whether German enterprises do indeed incur net costs on average during the apprenticeship period, i.e. whether the impact of an increase in the share of apprentices on contemporary profits is negative. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into account possible endogeneity of training intensity and unobserved heterogeneity in the profit estimation by employing panel system GMM methods. An increase in the share of apprentices has no effect on profits. This can be interpreted as a first indication that most establishments in Germany do not invest more in apprentices than their productivity effects during the apprenticeship period." (Author's abstract, IAB-Doku) ((en)) Additional Information Kurzfassung (deutsch) Executive summary (English)Ausbildungsverhalten, Ausbildungsbetrieb, Betrieb, betriebliche Berufsausbildung, Bildungsökonomie, Bildungsinvestitionen, Bildungsausgaben, Gewinn, Auszubildende, Produktivität, Personalpolitik, IAB-Linked-Employer-Employee-Datensatz

Optimization of a field-widened Michelson interferometer

This paper considers the optical design of a wide-angle fixed-path Michelson interferometer consisting of two arm glasses and an air gap. It is shown that this configuration can be optimized to give (a) extra large fringes (over 50° in diameter) over a range of wavelength, (b) a path difference nearly independent of wavelength, or (c) a path difference specified differently at two different wavelengths for observing a pair of doublets. Specific examples refer to the airglow wavelengths of 557.7, 630.0, 732.0 nm and others, and to a path difference of 4.5 cm. The properties of different glass combinations are discussed

Human capital creates insider power

This paper demonstrates that insiders can erect barriers to entry and skim rents by sinking costs in human capital when labour markets are otherwise perfectly contestable. The sunk costs nature of human capital investments may result from the need to satisfy ever increasing specialised skill requirements in our society. When outsiders can not threat with market entry, insiders invest inefficiently in human capital such that their rent share is maximized. This inefficiency results from the hold-up problem that arises since workers are not residual claimants of the human capital rents. On the other hand, since insiders´ investments are negatively correlated with the number of workers, this may lead to higher than efficient investments nevertheless. When outsiders have an effective entry threat, insiders are forced to accept higher employment of outsiders and share the reduced rents with them. However, full employment is not necessarily reached and in any case investments are higher and social rent is lower than optimal. --Insider-Outsider,Human Capital,Rents,Unemployment,Hold-Up

Workers into Managers: Developing Leadership Competence of Production Unit Managers

This study analyses the competence gaps of lower-level managers in a typical manufacturing plant in Germany that had recently introduced a teamwork structure. Results indicate that the managers have difficulties with their new leadership-related tasks. Higher levels of leadership competence are found to be associated with better acceptance as a manager by superiors, but not by subordinates, better interaction with both subordinates and superiors, and with higher job satisfaction. Finally, a quasi-experiment shows that a combination of workshops and individual coaching had measurable effects on leadership competencies and partly improved identification with the managerial role. In terms of methodology, a new format of self-assessments is suggested for a more valid measurement of competencies. --Leadership skills,first line managers,training,experiment

Why Do Firms Train Apprentices? The Net Cost Puzzle Reconsidered

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. --apprenticeship training,performance,panel data estimation