The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship

45 Pages Posted: 18 Oct 2001

See all articles by Damon Clark

Damon Clark

IZA Institute of Labor Economics

Rene Fahr

University of Paderborn; IZA Institute of Labor Economics

Date Written: October 2001

Abstract

This paper assesses the potential of "workplace training" with reference to German Apprenticeship. When occupational matching is important, we derive conditions under which firms provide "optimal" training packages. Since the German system broadly meets these conditions, we evaluate the effectiveness of apprenticeship using a large administrative dataset. We find returns to apprenticeship for even the lowest ability school-leavers comparable to standard estimates of the return to school, and show that training is transferable across a wide range of occupations, such as a one-digit occupation group. We conclude that the positive experience with German Apprenticeship Training may guide the design of similar policies in other countries.

Keywords: German Apprenticeship Training, Human Capital, Occupational Mobility, Wages

JEL Classification: C29, J24, J31, J62

Suggested Citation

Clark, Damon and Fahr, Rene, The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship (October 2001). IZA Discussion Paper No. 378. Available at SSRN: https://ssrn.com/abstract=287555

Damon Clark (Contact Author)

IZA Institute of Labor Economics ( email )

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

Rene Fahr

University of Paderborn ( email )

Warburger Str. 100
D-33098 Paderborn
Germany
+49 5251 60 3692 (Phone)

HOME PAGE: http://www.quantitative-cg.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany
+49 228 38 94 0 (Phone)
+49 228 38 94 510 (Fax)

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