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

Recruitment and Apprenticeship Training

The paper assesses non-training firm’s potential for free-riding on the training efforts of firms that train apprentices. In order to assess potential free-riding, the paper analyses whether training or non-training firms are more likely to recruit apprenticeship graduates that have been trained elsewhere. Firms without apprenticeships are less likely to hire apprenticeship graduates trained elsewhere than training firms. If these firms do hire apprenticeship graduates, they hire a smaller proportion compared to all new-hired skilled workers that have an apprenticeship degree than training firms. The paper discusses three potential explanations for this finding: lower demand for apprenticeship graduates, information disadvantage and apprentices’ preferences

Coaching Disadvantaged Young People: Evidence from Firm Level Data

In Germany, apprenticeship training firms currently face a shrinking number of qualified school-leavers because of smaller birth cohorts and an increasing proportion of school leavers aiming for higher education. This paper investigates whether a programme that supports firms to train disadvantaged youth can reduce recruiting difficulties in apprentice training firms. Based on unique firm-level data from the metal and electronic industry in Baden-Württemberg from 2010 to 2013, we apply instrumental variable and difference-in-difference estimations and find no significant short-term causal impact of the programme

Active owners and the failure of newly adopted works councils

Using representative data from the IAB Establishment Panel, we show that employees in establishments with active owners are less likely to introduce a works council. Moreover, we show that, in case of an introduction, the new works council is less likely to survive if active owners are present. Our findings conform to the hypothesis that active owners oppose codetermination because it reduces the utility they gain from being the ultimate bosses within the establishment

Zur Entwicklung der studienspezifischen Selbstwirksamkeit in der Oberstufe

Immer mehr junge Menschen in Deutschland erwerben eine Studienberechtigung. Aber bei weitem nicht alle Jugendlichen mit einer Studienberechtigung gehen tatsächlich studieren. Der Übergang an eine Hochschule hängt noch immer stark vom Familienhintergrund ab. Unter anderen trauen sich Schüler/innen aus nicht akademischen Elternhausern selbst bei gleichen Noten seltener ein Studium zu. In dieser Studie untersuchen wir aufbauend auf wiederholten Befragungen von Schüler/innen der Oberstufe die Wirkung eines Studienorientierungsprogramms auf die Entwicklung der studienspezifischen Selbstwirksamkeit, einem Maß des Vertrauens in die eigene Fähigkeit, ein Studium erfolgreich zu meistern. Unsere Differenz- von-Differenzen Befunde deuten darauf hin, dass die Teilnahme an dem Programm die studienspezifische Selbstwirksamkeit bei Jugendlichen aus einem nichtakademischen Elternhaus verbessert hat, nicht jedoch bei Jugendlichen aus einem akademischen Elternhaus. Bestehende Disparitäten zwischen diesen beiden Gruppen wurden deutlich verringert

Coaching disadvantaged young people : evidence from firm level data

In Germany, apprenticeship training firms currently face a shrinking number of qualified school-leavers because of smaller birth cohorts and an increasing proportion of school leavers aiming for higher education. This paper investigates whether a programme that supports firms to train disadvantaged youth can reduce recruiting difficulties in apprentice training firms. Based on unique firm-level data from the metal and electronic industry in Baden-Württemberg from 2010 to 2013, we apply instrumental variable and difference-in-difference estimations and find no significant short-term causal impact of the programme

Youth Unemployment After Apprenticeship Training and Individual, Occupation and Training Employer Characteristics

This paper analyses the risk of unemployment , unemployment duration and the risk of long-term unemployment immediately after apprenticeship graduation. Unemployed apprenticeship graduates constitute a large share of unemployed youth in Germany but unemployment incidence within this group is unequally distributed. Our paper extends previous research in three dimensions. It shows that (i) individual productivity assessment of the training firm, (ii) initial selection in to high reputation training firms and occupations, and (iii) adverse selection of employer moving graduates are correlated with unemployment after apprenticeship graduation

Reconciling the opposing economic effects of works councils across databases

Recent studies on the economic effects of works councils in Germany using the European Company Survey estimate a significant negative effect of works councils on establishment productivity and profitability. These results are in stark contrast to studies using the IAB Establishment Panel estimating a significant positive effect of works councils on establishment productivity and profitability. This article scrutinises these empirical approaches. While sample selection and control variables have a substantial impact on the magnitude of marginal effects, the definition of the dependent variable as an objective or subjective measure causes the opposing signs. Beyond that, similar measures in both datasets lead to comparable marginal effects highlighting the relevance of the definition of the dependent variable for inferences and interpretation of studies about the effectiveness of industrial relations institutions and raising questions about the validity of the performance measures

Wie kann die durchschnittliche Ausbildungsquote in Deutschland korrekt gemessen werden?

This paper demonstrates that the share of apprentices exhibits a relatively strong seasonal pattern. This means that statistics on the share of apprentices such as those presented in official publications differ substantially from the actual yearly mean if they are measured on a date close to the minimum (end of July) or the maximum (around the turn of the year). In addition the deviation from the yearly mean differs between occupations at certain measurement dates because occupations have different apprenticeship durations. This paper proposes to calculate the yearly average on the basis of daily shares instead of certain measurement dates. It also argues to use daily accurate employment data from the German social security system. --Apprenticeship training,measurement

Works councils and learning: On the dynamic dimension of codetermination

This study provides the first econometric analysis on the dynamic dimension of establishment-level codetermination in Germany. We hypothesize that learning implies a change in the nature and scope of codetermination over time. Using unique data from small- and medium-sized establishments, our empirical analysis provides strong evidence that learning indeed plays a crucial role in the functioning of works councils. First, the probability of an adversarial relationship between management and works council is decreasing in the age of the council. Second, the council's age is positively associated with the probability that the council has an influence even on decisions where it has no legal powers. Third, productivity is increasing in the age of the council. Fourth, the quit rate is decreasing in the age of the council. However, the estimates also provide evidence of a codetermination life cycle