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To recruit skilled workers or to train one's own? : vocational training in the face of uncertainty as to the rate of retention of trainees on completion of training

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  • Bellmann, Lutz
  • Janik, Florian

Abstract

"The article deals with the impact of uncertainty as regards the retention of trainees completing vocational training programmes on firms' training behaviour. As an alternative to vocational training, the external recruitment of skilled workers is considered via an opportunity costs approach. The uncertainty is traced back to staff turnover, considerable product market competition and changing skill requirements. Indicators of these causes of uncertainty are examined as to their impact on vocational training and the recruitment of skilled workers with a fractional logit model, using a seemingly unrelated cluster-adjusted sandwich estimator with data from the IAB Establishment Panel. There is no confirmation that the presumed correlations exist in manufacturing. A negative correlation is identified in the service sector between high staff turnover coupled with rapid change in the skills required on the one hand, and commitment to vocational training on the other, while there is a positive link with the external recruitment of skilled workers. This is interpreted as an indication that uncertainty with regard to retention after training can go some way towards explaining the growing gap between employment and vocational training in the tertiary sector." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bellmann, Lutz & Janik, Florian, 2007. "To recruit skilled workers or to train one's own? : vocational training in the face of uncertainty as to the rate of retention of trainees on completion of training," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 205-220.
  • Handle: RePEc:iab:iabzaf:v:40:i:2-3:p:205-220
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    References listed on IDEAS

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    Cited by:

    1. Luc Behaghel & Eve Caroli & Emmanuelle Walkowiak, 2012. "Information and communication technologies and skill upgrading: the role of internal vs external labour markets," Oxford Economic Papers, Oxford University Press, vol. 64(3), pages 490-517, July.
    2. Mohrenweiser, Jens, 2016. "Recruitment and apprenticeship training," Industrielle Beziehungen - Zeitschrift fuer Arbeit, Organisation und Management - The German Journal of Industrial Relations, Rainer Hampp Verlag, vol. 23(1), pages 6-24.
    3. Hinz, Tina, 2016. "Personnel policy adjustments when apprentice positions are unfilled: Evidence from German establishment data," Discussion Papers 99, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

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