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The effect of choice options in training curricula on the demand for and supply of apprentices

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  • Jansen, Anika
  • de Grip, Andries
  • Kriechel, Ben

Abstract

Building on Lazear's skill weights approach, we study the effect of having more or less heterogeneity in the training curriculum on the demand for and supply of apprentices. Modernizations of training curricula provide us with a quasi-experimental setting as these modernizations can be seen as a relatively exogenous shock. We argue that firms will train more apprentices when they have more choice options in the training curriculum because of (1) the higher productivity of graduates who have acquired more skills that are relevant for the firm, and (2) firms’ higher market power in the wage bargaining process with graduates. We test this hypothesis on data on the demand for apprentices in Germany in all occupations from 2004 to 2014. We find that a more heterogeneous curriculum increases both firms’ demand for and the supply of apprentices.

Suggested Citation

  • Jansen, Anika & de Grip, Andries & Kriechel, Ben, 2017. "The effect of choice options in training curricula on the demand for and supply of apprentices," Economics of Education Review, Elsevier, vol. 57(C), pages 52-65.
    • Handle: RePEc:eee:ecoedu:v:57:y:2017:i:c:p:52-65
    DOI: 10.1016/j.econedurev.2017.02.003
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    Cited by:

    1. Muehlemann, Samuel & Dietrich, Hans & Pfann, Gerard & Pfeifer, Harald, 2022. "Supply Shocks in the Market for Apprenticeship Training," Economics of Education Review, Elsevier, vol. 86(C).
    2. Mühlemann, Samuel & Pfann, Gerard A. & Pfeifer, Harald & Dietrich, Hans, 2018. "The Effects of Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," IZA Discussion Papers 11264, Institute of Labor Economics (IZA).
    3. Pfann, Gerard & Muehlemann, Samuel & Pfeifer, Harald & Dietrich, Hans, 2018. "Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," CEPR Discussion Papers 12669, C.E.P.R. Discussion Papers.
    4. Fabienne Kiener & Ann-Sophie Gnehm & Simon Clematide & Uschi Backes-Gellner, 2019. "IT skills in vocational training curricula and labour market outcomes," Economics of Education Working Paper Series 0159, University of Zurich, Department of Business Administration (IBW), revised Sep 2022.
    5. Fabienne Kiener & Christian Eggenberger & Uschi Backes-Gellner, 2024. "The role of occupational skill sets in the digital transformation: how IT progress shapes returns to specialization and social skills," Journal of Business Economics, Springer, vol. 94(1), pages 75-111, January.

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    More about this item

    Keywords

    Apprenticeships; Curricula; Firm-specific training; Supply of schooling; Demand for schooling; Human capital;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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