The high rates of premature contract termination (PCT) in vocational education and training (VET) programs have led to an increasing number of studies examining the reasons why adolescents drop out. Since adolescents’ trajectories after a PCT are quite diverse, a thorough assessment of different dropout directions is called for. However, empirical studies that distinguish between dropout directions are still scarce. The same is true for studies that differentiate between PCTs initiated by the trainees themselves and those initiated by the training company. Based on data from the German National Educational Panel Study (NEPS) on trainees in German dual VET programs (n = 5823), this study identifies six different dropout directions: (1) downward PCT into unqualified employment or unemployment, (2) downward PCT into a prevocational program, (3) horizontal PCT that represents a change of training company or (4) a change of occupation, and (5) upward PCT into general education or (6) higher education. Using multinomial logistic regression models we examine the effect of (a) the initiating party and (b) self-reported PCT reasons of trainees on dropout directions. Regarding trainees’ reasons we include reasons related to different aspects of the training (personal reasons, not the desired training occupation, financial reasons, training quality, conflicts, excessive demand, and being offered a different training position). The results indicate that in cases where trainees are dismissed by the training company, a horizontal change to a different training company becomes more likely, while the probability of an upward dropout into higher education decreases. Regarding PCT decisions made by trainees themselves, a downward PCT into unqualified employment or unemployment is more likely if personal reasons were the cause of a PCT decision. Moreover, the probability of a change of training company (horizontal PCT) increases in cases of conflict and if there is a prospect of a different training position, and decreases if the training position is not the desired occupation. A change of occupation (horizontal PCT) is more likely when there is the opportunity for a different training position available. Furthermore, upward PCTs (both into further general education and higher education) are more likely in cases where the training was in a field that was not the desired occupation. The probability of upward PCT into higher education decreases when there are conflicts and excessive demands, while upward PCTs into general education are significantly less likely when a different training position is obtained. The differential effects that occur for different types of PCTs emphasize that adolescents dropping out of VET cannot be treated as a homogenous group. Consequently, the results underscore the importance of conducting a more thorough assessment of both dropout directions and the initiating party of a PCT in future research.
