Do firms benefit from apprenticeship investments?

Artikel

Economists have long believed that firms will not pay to develop occupational skills that workers could use in other, often competing, firms. Researchers now recognize that firms that invest in apprenticeship training generally reap good returns. Evidence indicates that financial returns to firms vary. Some recoup their investment within the apprenticeship period, while others see their investment pay off only after accounting for reduced turnover, recruitment, and initial training costs. Generally, the first year of apprenticeships involves significant costs, but subsequently, the apprentice's contributions exceed his/her wages and supervisory costs. Most participating firms view apprenticeships as offering certainty that all workers have the same high level of expertise and ensuring an adequate supply of well-trained workers to cover sudden increases in demand and to fill leadership positions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: IZA World of Labor ; ISSN: 2054-9571 ; Year: 2019 ; Bonn: Institute of Labor Economics (IZA)

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Professional Labor Markets; Occupational Licensing ; Analysis of Education
• Subject: training ; skills ; apprenticeship

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lerman, Robert
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2019

Further information

• DOI: doi:10.15185/izawol.55.v2
• Handle: http://hdl.handle.net/10419/206579
• Last update: 10.03.2025, 11:43 AM CET