The Transformation of the German Vocational Training Regime: Evidence from Firms’ Training Behaviour

20 Pages Posted: 23 Nov 2012

See all articles by Renate Neubäumer

Renate Neubäumer

University of Koblenz-Landau

Harald Pfeifer

Bundesinstitut für Berufsbildung (BIBB)

Felix Wenzelmann

Bundesinstitut für Berufsbildung (BIBB)

Date Written: November 2012

Abstract

The German system of industrial relations has undergone significant changes in the last decade. This article reflects on and provides empirical evidence for how these changes have affected the training behaviour of firms. Conventional perspectives would predict a general decline in training investment when the constraints of collective wage bargaining are loosened. Relying on a large data set on the costs and benefits of apprenticeship training for the years 2000 and 2007, we do find evidence for this hypothesis but would add that the strength of the effect varies strongly across different types of firms. Large firms have benefited much more from participating in training than have small firms and have therefore maintained their investment in training because they are able to reduce net costs by expanding the productive contributions of apprentices. This finding may help to explain the apparent resilience of the German training system in the recent economic and financial crisis.

Suggested Citation

Neubäumer, Renate and Pfeifer, Harald and Wenzelmann, Felix, The Transformation of the German Vocational Training Regime: Evidence from Firms’ Training Behaviour (November 2012). Industrial Relations Journal, Vol. 43, Issue 6, pp. 572-591, 2012. Available at SSRN: https://ssrn.com/abstract=2179764 or http://dx.doi.org/10.1111/j.1468-2338.2012.00697.x

Renate Neubäumer (Contact Author)

University of Koblenz-Landau ( email )

Harald Pfeifer

Bundesinstitut für Berufsbildung (BIBB) ( email )

Bonn
Germany

Felix Wenzelmann

Bundesinstitut für Berufsbildung (BIBB) ( email )

Bonn
Germany

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