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Firm-Provided Training During the Great Recession

Author

Listed:
  • Bellmann Lutz

    (University of Erlangen-Nuremberg and Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

  • Gerner Hans-Dieter

    (Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

  • Leber Ute

    (Institute for Employment Research, Regensburger Str. 104, 90478 Nuremberg, Germany)

Abstract
Even though the 2008/09 economic crisis had only minor employment effects on the German labor market, it might have affected firms’ further training and apprenticeship training behavior. From a theoretical point of view, the impact of the business cycle on firms’ training behaviour is ambiguous. There are reasons for an increase of training during a downturn (e.g., declining opportunity costs of training, fewer exit options for trained workers) as well as arguments for a decrease of training (e.g., uncertain future benefits of training). The existing empirical evidence on the relationship between training and economic downturns is relatively scarce. In particular, we are not aware of any empirical study investigating the effects of the most recent crisis on firms’ training activities in Germany. Our paper aims to fill this gap by using data from the IAB Establishment Panel, a representative German panel data set with annual information about almost 16,000 establishments. In particular, we analyzed the provision and the intensity of further training and apprenticeship training in firms which were affected by the crisis and in those which were not. Our empirical investigation revealed that the establishments, irrespective of whether or not they were hit by the economic crisis, decreased their further training and apprenticeship training efforts in 2009 compared to 2008. However, establishments directly affected by the great recession tended to reduce their training activities more often than those which were not affected. Furthermore, we found much stronger variations in the development of firms’ further training activities than in the development of their apprenticeship training.

Suggested Citation

  • Bellmann Lutz & Gerner Hans-Dieter & Leber Ute, 2014. "Firm-Provided Training During the Great Recession," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(1), pages 5-22, February.
    • Handle: RePEc:jns:jbstat:v:234:y:2014:i:1:p:5-22
    DOI: 10.1515/jbnst-2014-0103
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    References listed on IDEAS

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    Cited by:

    1. Samuel Muehlemann & Harald Pfeifer & Bernhard Wittek, 2020. "The effect of business cycle expectations on the German apprenticeship market: Estimating the impact of Covid-19," Economics of Education Working Paper Series 0171, University of Zurich, Department of Business Administration (IBW).
    2. Pardesi, Mantej, 2024. "Productivity convergence and firm’s training strategy," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    3. Bellmann, Lutz & Hübler, Olaf, 2014. "Skill Shortages in German Establishments," IZA Discussion Papers 8290, Institute of Labor Economics (IZA).
    4. Pardesi, Mantej, 2024. "Productivity Convergence and Firm’s Training Strategy," Research Memorandum 003, Maastricht University, Graduate School of Business and Economics (GSBE).
    5. Dietz Daniel & Zwick Thomas, 2020. "Training in the Great Recession – Evidence from an Individual Perspective," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 493-523, August.
    6. Thomsen, Stephan L. & Trunzer, Johannes, 2020. "Did the Bologna Process Challenge the German Apprenticeship System? Evidence from a Natural Experiment," IZA Discussion Papers 13806, Institute of Labor Economics (IZA).
    7. Bellmann Lutz & Hübler Olaf, 2014. "The Skill Shortage in German Establishments Before, During and After the Great Recession," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(6), pages 800-828, December.
    8. Laible, Marie-Christine & Anger, Silke & Baumann, Martina, 2020. "Personality Traits and Further Training," IAB-Discussion Paper 202034, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Flake, Regina & Seyda, Susanne & Werner, Dirk, 2020. "Was Unternehmen hilft, während der Corona-Pandemie weiterbildungsaktiv zu sein," IW-Kurzberichte 68/2020, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    10. Dietz Daniel & Zwick Thomas, 2020. "Training in the Great Recession – Evidence from an Individual Perspective," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 493-523, August.
    11. Guerrazzi, Marco, 2014. "Workforce ageing and the training propensity of Italian firms: cross-sectional evidence from the INDACO survey," MPRA Paper 56826, University Library of Munich, Germany.
    12. Dummert, Sandra & Umkehrer, Matthias, 2021. "The Short-Run Effects of the Covid-19 Pandemic on Vocational Education in Germany," IAB-Discussion Paper 202122, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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