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Premature Apprenticeship Terminations: An Economic Analysis

Author

Listed:
  • Donata Bessey

    (Department of Business Administration, University of Zurich)

  • Uschi Backes-Gellner

    (Department of Business Administration, University of Zurich)

Abstract

This paper presents empirical evidence on premature terminations of apprenticeship contracts in Germany. Our novel approach uses human capital theory with a regional component as a clear-cut framework for the analysis. It derives testable hypotheses on individual decisions to finish an investment in human capital, namely, their apprenticeship training. Using a German data set, we find some evidence for the appropriateness of our theory, especially with respect to the short-term cost of an apprenticeship. Regional impact factors also seem to have a decisive impact on the decision to drop out from vocational training. We conclude that economic incentives, also long-term ones, seem to play a decisive role in individuals’ decisions whether to finish their training or not.

Suggested Citation

  • Donata Bessey & Uschi Backes-Gellner, 2007. "Premature Apprenticeship Terminations: An Economic Analysis," Economics of Education Working Paper Series 0002, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0002
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    References listed on IDEAS

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    Cited by:

    1. Uschi Backes-Gellner & Donata Bessey & Kerstin Pull & Simone Tuor, 2008. "What Behavioural Economics Teaches Personnel Economics," Working Papers 0077, University of Zurich, Institute for Strategy and Business Economics (ISU).
    2. Dostie, Benoit, 2010. "A Competing Risks Analysis of the Determinants of Low Completion Rates in the Canadian Apprenticeship System," CLSSRN working papers clsrn_admin-2010-29, Vancouver School of Economics, revised 21 Oct 2010.

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    More about this item

    Keywords

    Apprenticeship training; human capital; regional labor markets;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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