A Structural Model of Demand for Apprentices

30 Pages Posted: 18 Feb 2005

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

Date Written: February 2005

Abstract

It is a widely held opinion that apprenticeship training represents a net investment for training firms, and that therefore firms only train if they have the possibility to recoup these investments after the training period. A recent study using a new firm-level dataset for Switzerland showed, however, that for 60 percent of the firms, the apprenticeship training itself does not result in net cost. In this context it seems important to examine the question of whether the potential net cost of training (during the training period) is a major determinant for the demand for apprentices. Different count data models, in particular hurdle models, are used to estimate the effect of net cost on the demand for apprentices. The results show that the net cost has a significant impact on the training decision but no significant influence on the demand for 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 demand for apprentices.

Keywords: apprenticeship training, count data, probit-Poisson-log-normal model, Switzerland

JEL Classification: J24, C25

Suggested Citation

Mühlemann, Samuel and Schweri, Jürg and Winkelmann, Rainer and Wolter, Stefan C., A Structural Model of Demand for Apprentices (February 2005). CESifo Working Paper Series No. 1417. Available at SSRN: https://ssrn.com/abstract=668881

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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