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The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship

Author

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  • Clark, Damon

    (University of California, Irvine)

  • Fahr, René

    (University of Paderborn)

Abstract
This paper assesses the potential of ‘workplace training’ with reference to German Apprenticeship. When occupational matching is important, we derive conditions under which firms provide ‘optimal’ training packages. Since the German system broadly meets these conditions, we evaluate the effectiveness of apprenticeship using a large administrative dataset. We find returns to apprenticeship for even the lowest ability school-leavers comparable to standard estimates of the return to school, and show that training is transferable across a wide range of occupations, such as a one-digit occupation group. We conclude that the positive experience with German Apprenticeship Training may guide the design of similar policies in other countries.

Suggested Citation

  • Clark, Damon & Fahr, René, 2001. "The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship," IZA Discussion Papers 378, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp378
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    References listed on IDEAS

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

    Citations

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    Cited by:

    1. Pierre Cahuc & Stéphane Carcillo & Ulf Rinne & Klaus Zimmermann, 2013. "Youth unemployment in old Europe: the polar cases of France and Germany," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-23, December.
    2. repec:idb:brikps:7203 is not listed on IDEAS
    3. James Heckman & Tim Kautz, 2013. "Fostering and Measuring Skills: Interventions That Improve Character and Cognition," Working Papers 2013-019, Human Capital and Economic Opportunity Working Group.
    4. Goeggel, Kathrin & Zwick, Thomas, 2009. "Good occupation - bad occupation? The quality of apprenticeship training," ZEW Discussion Papers 09-024, ZEW - Leibniz Centre for European Economic Research.
    5. Matteo Picchio & Stefano Staffolani, 2019. "Does apprenticeship improve job opportunities? A regression discontinuity approach," Empirical Economics, Springer, vol. 56(1), pages 23-60, January.
    6. Fitzenberger, Bernd & Licklederer, Stefanie & Zwiener, Hanna, 2015. "Mobility across firms and occupations among graduates from apprenticeship," Labour Economics, Elsevier, vol. 34(C), pages 138-151.
    7. Regula Geel & Uschi Backes-Gellner, 2009. "Occupational Mobility Within and Between Skill Clusters: An Empirical Analysis Based on the Skill-Weights Approach," Economics of Education Working Paper Series 0047, University of Zurich, Department of Business Administration (IBW), revised Mar 2011.
    8. By Barbara Mueller & Jürg Schweri, 2015. "How specific is apprenticeship training? Evidence from inter-firm and occupational mobility after graduation," Oxford Economic Papers, Oxford University Press, vol. 67(4), pages 1057-1077.
    9. Andrew Sharpe & James Gibson, 2005. "The Apprenticeship System in Canada: Trends and Issues," CSLS Research Reports 2005-04, Centre for the Study of Living Standards.
    10. Kautz, Tim & Heckman, James J. & Diris, Ron & ter Weel, Bas & Borghans, Lex, 2014. "Fostering and Measuring Skills: Improving Cognitive and Non-Cognitive Skills to Promote Lifetime Success," IZA Discussion Papers 8696, Institute of Labor Economics (IZA).
    11. Lerman, Robert I., 2013. "Skill Development in Middle Level Occupations: The Role of Apprenticeship Training," IZA Policy Papers 61, Institute of Labor Economics (IZA).
    12. Kathrin Göggel & Thomas Zwick, 2012. "Heterogeneous Wage Effects of Apprenticeship Training," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(3), pages 756-779, September.
    13. Riphahn, Regina T. & Zibrowius, Michael, 2015. "Apprenticeship, Vocational Training and Early Labor Market Outcomes in East and West Germany," IZA Discussion Papers 8901, Institute of Labor Economics (IZA).
    14. Margaret Stevens, 2012. "Human Capital and Competition: Strategic Complementarities in Firm-based Training," Economics Series Working Papers 629, University of Oxford, Department of Economics.
    15. Gersbach, Hans & Schmutzler, Armin, 2005. "The Effects of Globalization on Worker Training," CEPR Discussion Papers 4879, C.E.P.R. Discussion Papers.
    16. Maier, Tobias & Zika, Gerd & Mönnig, Anke & Wolter, Marc Ingo & Kalinowski, Michael & Hänisch, Carsten & Helmrich, Robert & Schandock, Manuel & Neuber-Pohl, Caroline & Bott, Peter & Hummel, Markus, 2014. "Löhne und berufliche Flexibilitäten als Determinanten des interaktiven QuBe-Arbeitsmarktmodells: ein Methodenbericht zur Basisprojektion der dritten Welle der BIBB-IAB Qualifikations- und Berufsfeldpr," Wissenschaftliche Diskussionspapiere, Federal Institute for Vocational Education and Training (BIBB), Bonn, volume 127, number 148, July.
    17. Robert Lerman, 2013. "Are employability skills learned in U.S. youth education and training programs?," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-20, December.
    18. Wagner, Robert & Wolf, Maximilian, 2013. "What drives the intention of Bavarian crafts apprentices to change employer or occupation? : an empirical study in the crafts sector," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 46(1), pages 43-60.
    19. Nancy Kracke & Malte Reichelt & Basha Vicari, 2018. "Wage Losses Due to Overqualification: The Role of Formal Degrees and Occupational Skills," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 1085-1108, October.
    20. Verónica Alaimo & Mariano Bosch & David S. Kaplan & Carmen Pagés & Laura Ripani, 2015. "Jobs for Growth," IDB Publications (Books), Inter-American Development Bank, number 90977, February.
    21. Kracke, Nancy & Reichelt, Malte & Vicari, Basha, 2017. "Wage losses due to overqualification: The role of formal degrees and occupational skills," IAB-Discussion Paper 201710, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    22. repec:bdp:wpaper:2015001 is not listed on IDEAS

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    More about this item

    Keywords

    German apprenticeship training; human capital; occupational mobility; wages;
    All these keywords.

    JEL classification:

    • C29 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Other
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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