Returns to Apprenticeship Training in Austria: Evidence from Failed Firms

Fersterer, Josef; Pischke, Jörn-Steffen and Winter-Ebmer, RudolfORCID: (July 2007) Returns to Apprenticeship Training in Austria: Evidence from Failed Firms. Former Series > Working Paper Series > IHS Economics Series 215


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Abstract: Little is known about the payoffs to apprenticeship training in the German speaking countries for the participants. There is a lot of heterogeneity in the types of apprenticeships offered, and there might be an important element of selection in who obtains an apprenticeship, and what type. To overcome the resulting ability bias we estimate returns to apprenticeship for apprentices in failed firms in Austria. When a firm fails, current apprentices cannot complete their training in thisfirm. Because apprentices will be at different stages in their apprenticeship, the failure of a firm will manipulate the length of the apprenticeship period completed for some apprentices. The time to 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: IHS Series
Keywords: 'Human capital' 'Returns to schooling' 'Firm-based training' 'Ability bias'
Classification Codes (e.g. JEL): J24, J31
Date Deposited: 26 Sep 2014 10:38
Last Modified: 21 Jul 2024 06:02
ISBN: 1605-7996

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