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The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany

Author

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  • Guido Baldi
  • Imke Brüggemann-Borck
  • Thore Schlaak

Abstract

The benefits of dual apprenticeship programs are usually discussed in the context of reducing structural unemployment rates, especially among the young. Related to this, the long-run benefits of dual apprenticeship programs are extensively analyzed in the literature. However, empirical evidence regarding the short-run effects of the business cycle on the number of apprenticeships is scarce. In this paper, we use panel-data at the German federal states level ranging from 1999 through 2012 to analyze the effects of the business cycle on the number of new apprenticeship contracts. Using different sample periods and model specifications, we do not find a robust and significant effect of the business cycle on apprenticeships. Hence, the apprenticeship system seems to dampen the volatility of youth unemployment. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Guido Baldi & Imke Brüggemann-Borck & Thore Schlaak, 2014. "The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany," Journal of Labor Research, Springer, vol. 35(4), pages 412-422, December.
    • Handle: RePEc:spr:jlabre:v:35:y:2014:i:4:p:412-422
    DOI: 10.1007/s12122-014-9192-6
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    1. Lindley, Robert M, 1975. "The Demand for Apprentice Recruits by the Engineering Industry, 1951-71," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(1), pages 1-24, February.
    2. Dietrich, Hans & Gerner, Hans-Dieter, 2007. "The determinants of apprenticeship training with particular reference to business expectations," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 40(2/3), pages 221-233.
    3. Brunello, Giorgio, 2009. "The Effect of Economic Downturns on Apprenticeships and Initial Workplace Training: A Review of the Evidence," IZA Discussion Papers 4326, Institute of Labor Economics (IZA).
    4. Brunello, Giorgio & Medio, Alfredo, 2001. "An explanation of international differences in education and workplace training," European Economic Review, Elsevier, vol. 45(2), pages 307-322, February.
    5. Zimmermann, Klaus F. & Biavaschi, Costanza & Eichhorst, Werner & Giulietti, Corrado & Kendzia, Michael J. & Muravyev, Alexander & Pieters, Janneke & Rodríguez-Planas, Núria & Schmidl, Ricarda, 2013. "Youth Unemployment and Vocational Training," Foundations and Trends(R) in Microeconomics, now publishers, vol. 9(1–2), pages 1-157, December.
    6. repec:eme:rlepps:v:18:y:1999:i:1999:p:359-375 is not listed on IDEAS
    7. Jan Erik Askilden & Øivind Anti Nilsen, 2005. "Apprentices And Young Workers: A Study Of The Norwegian Youth Labour Market," Scottish Journal of Political Economy, Scottish Economic Society, vol. 52(1), pages 1-17, February.
    8. Mühlemann, Samuel & Wolter, Stefan C. & Wüest, Adrian, 2009. "Apprenticeship Training and the Business Cycle," IZA Discussion Papers 4460, Institute of Labor Economics (IZA).
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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. Samuel Lüthi & Stefan C. Wolter, 2020. "Are apprenticeships business cycle proof?," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 156(1), pages 1-11, December.
    3. Chalapati, Nakarin & Chalapati, Supaporn, 2020. "Building a skilled workforce: Public discourses on vocational education in Thailand," International Journal for Research in Vocational Education and Training (IJRVET), European Research Network in Vocational Education and Training (VETNET), European Educational Research Association, vol. 7(1), pages 67-90.
    4. Pfann, Gerard & Muehlemann, Samuel & Pfeifer, Harald & Dietrich, Hans, 2018. "Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," CEPR Discussion Papers 12669, C.E.P.R. Discussion Papers.
    5. Muehlemann, Samuel & Dietrich, Hans & Pfann, Gerard & Pfeifer, Harald, 2022. "Supply Shocks in the Market for Apprenticeship Training," Economics of Education Review, Elsevier, vol. 86(C).
    6. Thomas Bolli & Guillaume Morlet, 2023. "Does human capital theory govern the relationship between training provision and the business cycle? Evidence from Switzerland," French Stata Users' Group Meetings 2023 26, Stata Users Group.
    7. 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].
    8. Mühlemann, Samuel & Pfann, Gerard A. & Pfeifer, Harald & Dietrich, Hans, 2018. "The Effects of Supply Shocks in the Market for Apprenticeships: Evidence from a German High School Reform," IZA Discussion Papers 11264, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Economic fluctuations; Education; Hiring; Unemployment; E32; I21; J63;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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