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Are Apprenticeships Still Relevant in the 21st Century? A Case Study of Changing Youth Training Arrangements in German Banks

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  • David Finegold
  • Karin Wagner

Abstract

The authors present a detailed case study of the evolution of apprenticeships in German banking over the past two decades to analyze why employers continue to be willing to invest in these programs that provide workers with transferable skills. They explain employers' motivation in terms of two “logics.†Some considerations stemming from the logic of consequences , such as recruitment cost savings and enhanced workplace flexibility, encourage retention of the apprenticeship system. On balance, however, the cost calculus that is at the heart of the logic of consequences would, if unopposed, encourage head-hunting for apprentices trained by other firms, eventually undermining the system. The countervailing logic of appropriateness , however, discourages defections from the system by fostering trust among employers, encouraging new firms to participate in the system, supporting the strong reputational effect associated with training, and creating mechanisms with which banks can have a hand in keeping the system efficient.

Suggested Citation

  • David Finegold & Karin Wagner, 2002. "Are Apprenticeships Still Relevant in the 21st Century? A Case Study of Changing Youth Training Arrangements in German Banks," ILR Review, Cornell University, ILR School, vol. 55(4), pages 667-685, July.
    • Handle: RePEc:sae:ilrrev:v:55:y:2002:i:4:p:667-685
    DOI: 10.1177/001979390205500406
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    References listed on IDEAS

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    1. Katharine G. Abraham & Susan N. Houseman, 1993. "Job Security in America: Lessons from Germany," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number kagsnh1993, November.
    2. Geoff Mason & Karin Wagner, 1999. "Knowledge Transfer and Innovation in Germany and Britain: 'Intermediate Institution' Models of Knowledge Transfer under Strain?," Industry and Innovation, Taylor & Francis Journals, vol. 6(1), pages 85-109.
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    Cited by:

    1. Heinz Hollenstein & Tobias Stucki, 2012. "The 'New Firm Paradigm' and the Provision of Training: The Impact of ICT, Workplace Organization and Human Capital," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 148(IV), pages 557-595, December.
    2. Virginia Doellgast, 2010. "Collective Voice under Decentralized Bargaining: A Comparative Study of Work Reorganization in US and German Call Centres," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 375-399, June.
    3. Xavier St‐Denis & Matissa Hollister, 2023. "Two paths towards job instability: Comparing changes in the distribution of job tenure duration in the United Kingdom and Germany, 1984–2014," British Journal of Industrial Relations, London School of Economics, vol. 61(3), pages 723-751, September.

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