The Demand for Apprentice Recruits by the Engineering Industry, 1951‐71

Lindley, Robert M.

doi:10.1111/j.1467-9485.1975.tb00043.x

Cited by 70 publications

(46 citation statements)

References 6 publications

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“…Firms may supply training positions because they expect some future return from an initial net investment in training (Oatey, 1970;Lindley, 1975;Merrilees, 1983). This idea was first formalized by Stevens (1994) in an investment model for a firm's supply of training.…”

Section: Literature On Hiring and Training Costsmentioning

confidence: 99%

Hiring costs for skilled workers and the supply of firm-provided training

Blatter

Muehlemann

Schenker³

et al. 2015

Oxf. Econ. Pap.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This paper analyzes how the costs of hiring skilled workers from the external labor market affect a firm's supply of training. Using administrative survey data with detailed information on hiring and training costs for Swiss firms, we find evidence for substantial and increasing marginal hiring costs. However, firms can invest in internal training of unskilled workers and thereby avoid costs for external hiring. Controlling for a firm's training investment, we find that a one standard deviation increase in average external hiring costs increases the number of internal training positions by 0.7 standard deviations.JEL Classification: J23, J24, J32

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Section: Literature On Hiring and Training Costsmentioning

confidence: 99%

Hiring costs for skilled workers and the supply of firm-provided training

Blatter

Muehlemann

Schenker³

et al. 2015

Oxf. Econ. Pap.

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“…The economic literature usually makes a distinction between a current production motive and an investment motive (Lindley, 1975;Stevens, 1994a). In the first case, the main reason for employing apprentices is their contribution to the production process.…”

Section: Introductionmentioning

confidence: 99%

The Quality of Apprenticeship Training

Smits

2006

Education Economics

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This paper examines the relationship between a firm's training motives and the quality of apprenticeship training. Data on training quality and training motives are obtained by interviewing former apprentices. The paper employs a novel measure for training quality based on subjective survey data on the firm's training effort. It is found that firms that train apprentices because of a future need for qualified workers provide better quality training than firms that do not have future benefits from training.Human capital, training quality, training motives, apprenticeships,

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“…Thereby it is assumed that both the shortfall and the excessive number of own apprenticeship trainees lead to opportunity costs. The decision to provide apprenticeship training in the own firm critically depends on whether the firm's owner expects the training costs to be covered during training by means of the apprentice's own productivity (productivity orientation, Lindley, 1975;Neubäumer, 1999) or after the training through remuneration being lower than the staying former graduate apprentice's productivity (investment orientation).…”

Section: Literature and Theoretical Backgroundmentioning

confidence: 99%

Apprenticeship Training in Germany - Investment or Productivity Driven?

Zwick

2007

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp07023.pdf Non Technical SummaryThe German dual apprenticeship system came under pressure in recent years because enterprises were not willing to offer a sufficient number of apprenticeship positions. A large theoretical literature argues that in Germany firms are willing to invest in apprenticeship training, i.e. to incur net costs during the apprenticeship period. On the basis of the specific institutional situation, firms have the opportunity to re-earn the net-costs after apprentices received their diploma and stayed in the firm. Important arguments are a high share of apprentices staying in firms, market power of firms and information asymmetries that allow firms to pay a wage below the productivity for "home-grown" skilled employees. It might be therefore argued that the gap on the apprenticeship market increased because the German firms are less willing to incur net apprenticeship costs (an indication for investment orientation) and instead increasingly try to cover the training costs already during the time before the apprentice got his or her diploma (an indication for productivity orientation). Until now there is no representative evidence on the investment versus productivity orientation of German firms when it comes to their decision to offer apprenticeships. So far only the net costs of specific training professions have been calculated on the basis of cross section interviews. Hereby training firms have been directly asked on their costs and benefits while non-training firms had to indicate their potential costs and benefits. This approach is more prone to measurement error than indirectly estimating costs and benefits on the basis of representative firm profit regressions. This paper, therefore, investigates for the first time if German enterprises on average indeed incur net costs during the apprenticeship period including data from firms with and without apprentices. This is done by calculating if the impact of (an increase in) the share of apprentices on contemporary net revenues minus wage costs is negative. A positive contemporaneous impact is interpreted as productivity orientation. If an increase in the share of apprentices decreases contemporaneous profits per head (and increases lagged profits per head), this is interpreted as investment orientation. The paper uses the representative linked employer-employee panel data of the IAB (LIAB) and takes into ...

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The Demand for Apprentice Recruits by the Engineering Industry, 1951‐71

Cited by 70 publications

References 6 publications

Hiring costs for skilled workers and the supply of firm-provided training

Hiring costs for skilled workers and the supply of firm-provided training

The Quality of Apprenticeship Training

Apprenticeship Training in Germany - Investment or Productivity Driven?

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