Apprentice Poaching in Regional Labor Markets

57 Pages Posted: 3 Mar 2017

See all articles by Bastian Stockinger

Bastian Stockinger

Government of the Federal Republic of Germany - Institute for Employment Research (IAB)

Thomas Zwick

University of Würzburg - Business Administration & Economics; Centre for European Economic Research (ZEW); Maastricht University - Research Centre for Education and the Labour Market (ROA)

Date Written: March 1, 2017

Abstract

A number of studies have found that firms provide less training if they are located in regions with strong labor market competition. This finding is usually interpreted as evidence of a higher risk of poaching in these regions. Yet, there is no direct evidence that regional competition is positively correlated with poaching. Building on a recently established approach to ex-post identify poaching of apprenticeship completers, our paper is the first to directly investigate the correlation between regional labor market competition and poaching. Using German administrative data, we find that competition indeed increases training establishments’ probability of becoming poaching victims. However, poaching victims do not change their apprenticeship training activity in reaction to past poaching. Instead, our findings indicate that the lower training activity in competitive regions can be attributed to lower retention rates, a less adverse selection, and lower labor and hiring costs of apprenticeship completers hired from rivals.

Keywords: Poaching, Firm-Sponsored Training, Apprenticeship, Regional Labor Markets, Labor Market Competition

JEL Classification: J24, M51, M53, R23

Suggested Citation

Stockinger, Bastian and Zwick, Thomas, Apprentice Poaching in Regional Labor Markets (March 1, 2017). ZEW - Centre for European Economic Research Discussion Paper No. 17-013. Available at SSRN: https://ssrn.com/abstract=2926358 or http://dx.doi.org/10.2139/ssrn.2926358

Bastian Stockinger (Contact Author)

Government of the Federal Republic of Germany - Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

Thomas Zwick

University of Würzburg - Business Administration & Economics ( email )

Sanderring 2
Wuerzburg, D-97070
Germany

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

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