Chapter 40

The economics of vocational training

Samuel Muehlemann a , b , and Stefan C. Wolter b , c , d       a LMU Munich, Munich, Germany      b IZA Bonn, Bonn, Germany      c University of Bern, Bern, Switzerland      d CESifo Munich, Munich, Germany

Abstract

In countries with an apprenticeship system, training firms typically make a significant investment in general human capital of apprentices in addition to paying an apprentice wage, even though such training contracts are limited for the duration of the apprenticeship period. While a firm’s training costs may be offset by the productive value of apprentices during the training period, firms may also recoup their initial investment by retaining apprentices as skilled workers ...

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