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A Structural Model of Demand for Apprentices

Author

Listed:
  • Samuel Muehlemann

    (Economic Department, University of Berne)

  • Juerg Schweri

    (Swiss Pedagogical Institute for Vocational Education)

  • Rainer Winkelmann

    (Socioeconomic Institute, University of Zurich)

  • Stefan C. Wolter

    (Swiss Coordination Centre for Research in Education, University of Berne)

Abstract
It is a widely held opinion that apprenticeship training represents a net investment for training firms, and that therefore firms only train if they have the possibility to recoup these investments after the training period. A recent study using a new firm-level dataset for Switzerland showed, however, that for 60 percent of the firms, the apprenticeship training itself does not result in net cost. In this context it seems important to examine the question whether the potential net cost of training (during the training period) are a major determinant for the demand for apprentices. Different count data models, in particular hurdle models, are used to estimate the effect of net cost on the demand for apprentices. The results show that the net cost have a significant impact on the training decision but no significant influence on the demand for 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 demand for apprentices.

Suggested Citation

  • Samuel Muehlemann & Juerg Schweri & Rainer Winkelmann & Stefan C. Wolter, 2005. "A Structural Model of Demand for Apprentices," SOI - Working Papers 0504, Socioeconomic Institute - University of Zurich.
    • Handle: RePEc:soz:wpaper:0504
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    References listed on IDEAS

    as
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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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