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An empirical analysis of the decision to train apprentices

Author

Listed:
  • Samuel Muehlemann

    (Institute of Economics, University of Berne)

  • Stefan C. Wolter

    (Institute of Economics, University of Berne)

  • Juerg Schweri

    (EHB Schweiz)

  • Rainer Winkelmann

    (Socioeconomic Institute, University of Zurich)

Abstract

It is a widely held belief that apprenticeship training represents a net investment for training firms, the cost of which needs to be recouped after the training period. A new firm-level dataset for Switzerland reveals large variation in net costs across firms and, remarkably, negative net costs for 60 percent of all firms. We use these data to estimate the effect of net costs on the number of apprentices hired by a firm. The results show that the costs have a significant impact on the training decision but no significant influence on the number of 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 number of available training places.

Suggested Citation

  • Samuel Muehlemann & Stefan C. Wolter & Juerg Schweri & Rainer Winkelmann, 2007. "An empirical analysis of the decision to train apprentices," Economics of Education Working Paper Series 0005, University of Zurich, Department of Business Administration (IBW).
    • Handle: RePEc:iso:educat:0005
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Apprenticeship training; count data; probit-Poisson-log-normal model; Switzerland;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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