Returns to apprenticeship training in Austria: evidence from failed firms

Fersterer, Josef, Pischke, Jörn-Steffen ORCID: 0000-0002-6466-1874 and Winter-Ebmer, Rudolf (2008) Returns to apprenticeship training in Austria: evidence from failed firms. CEEDP (88). Centre for the Economics of Education, London School of Economics and Political Science, London, UK. ISBN 9780853281931

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Abstract

Little is known about the payoffs to apprenticeship training in the German speaking countries for the participants. OLS estimates suggest that the returns are similar to those of other types of schooling. However, there is a lot of heterogeneity in the types of apprenticeships offered, and institutional descriptions suggest that there might be an important element of selection in who obtains an apprenticeship, and what type. In order to overcome the resulting ability bias we estimate returns to apprenticeship training for apprentices in failed firms in Austria. When a firm fails, current apprentices cannot complete their training in this firm. Because apprentices will be at different stages in their apprenticeship at that time, the failure of a firm will manipulate the length of the apprenticeship period completed for some apprentices. The time to the firm failure therefore serves as an instrument for the length of the apprenticeship completed both at the original firm and at other firms. We find instrumental variables returns which are similar or larger than the OLS returns in our sample, indicating relatively little selection.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cee.lse.ac.uk
Additional Information:	© 2008 the authors
Divisions:	Economics
Subjects:	H Social Sciences > HD Industries. Land use. Labor L Education > L Education (General)
JEL classification:	J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
Date Deposited:	14 Jul 2008 14:06
Last Modified:	03 Nov 2024 02:33
URI:	http://eprints.lse.ac.uk/id/eprint/19380

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