An Empirical Analysis of the Decision to Train Apprentices

23 Pages Posted: 31 Aug 2007

See all articles by Samuel Muehlemann

Samuel Muehlemann

University of Bern

Juerg Schweri

Swiss Federal Institute of Vocational Education and Research

Rainer Winkelmann

University of Zurich - Statistics and Empirical Economic Research; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Stefan C. Wolter

Swiss Coordination Centre for Research in Education (SKBF); University of Bern - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Abstract

It is a widely held belief that apprenticeship training represents a net investment for training firms, the cost of which needs to be recouped after the training period. A new firm-level data set for Switzerland reveals large variation in net costs across firms and, remarkably, negative net costs for 60 per cent of all firms. We use these data to estimate the effect of net costs on the number of apprentices hired by a firm. The results show that the costs have a significant impact on the training decision but no significant influence on the number of apprentices, once the firm has decided to train. For policy purposes, these results indicate that subsidies for firms that already train apprentices would not boost the number of available training places.

Suggested Citation

Mühlemann, Samuel and Schweri, Jürg and Winkelmann, Rainer and Wolter, Stefan C., An Empirical Analysis of the Decision to Train Apprentices. Labour, Vol. 21, No. 3, pp. 419-441, September 2007. Available at SSRN: https://ssrn.com/abstract=1011285 or http://dx.doi.org/10.1111/j.1467-9914.2007.00379.x

Samuel Mühlemann

University of Bern ( email )

Gesellschaftstrasse 49
Bern, CH-3012
Switzerland

Jürg Schweri

Swiss Federal Institute of Vocational Education and Research ( email )

Kirchlindachstrasse 79
Zollikofen, 3052
Switzerland

Rainer Winkelmann

University of Zurich - Statistics and Empirical Economic Research ( email )

Raemistrasse 62
CH-8001 Zurich
Switzerland
++41 1 634 2292 (Phone)
++41 1 634 4996 (Fax)

HOME PAGE: http://www.unizh.ch/sts/

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 3894 503 (Phone)
+49 228 3894 510 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Stefan C. Wolter (Contact Author)

Swiss Coordination Centre for Research in Education (SKBF) ( email )

CH - 5000 Aarau
Switzerland
+41 62 835 23 90 (Phone)
+41 62 835 23 99 (Fax)

HOME PAGE: http://www.skbf-csre.ch

University of Bern - Department of Economics ( email )

Gesellschaftstrasse 49
Bern, CH-3012
Switzerland
+41 31 631 40 95 (Phone)
+41 31 631 39 92 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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