Do Employment Subsidies Reduce Early Apprenticeship Dropout?

38 Pages Posted: 21 Aug 2013

See all articles by Jan Fries

Jan Fries

ZEW – Leibniz Centre for European Economic Research

Christian Goebel

Catholic University of Louvain (UCL); ZEW – Leibniz Centre for European Economic Research

Michael Florian Maier

ZEW – Leibniz Centre for European Economic Research

Date Written: August 16, 2013

Abstract

We evaluate the effect of the Apprenticeship Bonus, an employment subsidy programme, on early dropout of apprenticeship. Eligibility to the programme is restricted to school leavers who have actively searched for apprenticeship training to start immediately after leaving school, but were unsuccessful in finding a position. Our analysis is based on rich survey data that has been collected specifically for this study. Using this data, we describe the characteristics of school leavers who have searched for apprenticeship positions unsuccessfully directly leaving school and analyse the effect of the subsidy on the risk of apprenticeship dropout. Even though the subsidy provides strong incentives to prevent dropout, we do not find significant effects of the programme. Our finding suggests that financial incentives are not effective in increasing the probability to finish vocational in-firm training successfully.

Keywords: Apprenticeship, vocational training

JEL Classification: I21, J08, J38

Suggested Citation

Fries, Jan and Goebel, Christian and Goebel, Christian and Maier, Michael Florian, Do Employment Subsidies Reduce Early Apprenticeship Dropout? (August 16, 2013). ZEW - Centre for European Economic Research Discussion Paper No. 13-053, Available at SSRN: https://ssrn.com/abstract=2313105 or http://dx.doi.org/10.2139/ssrn.2313105

Jan Fries (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Christian Goebel

Catholic University of Louvain (UCL) ( email )

Place Montesquieu, 3
Louvain-la-Neuve, 1348
Belgium

HOME PAGE: http://homepages.econ.ucl.ac.be/goebel/

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Michael Florian Maier

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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