How Negative Labor Supply Shocks Affect Training in Firms: Lessons from Opening the Swiss-German Border

Arbeitspapier

By exploiting a labor market reform causing an outflow of German workers to Switzerland, we examine the effect of negative labor supply shocks on training in firms using the market for apprenticeships as an example. Analysis of administrative data reveals that the reform led to more apprentices in German firms despite a decrease in apprentice wages. This can be explained by a standard two-factor production model where firms substitute outflowing skilled workers with more apprentices; setting lower wages is possible because of a rising supply of apprentices owing to substantially improved employment prospects after border openings.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 16652

Classification and Topics

• Classification: Wirtschaft ; Labor Force and Employment, Size, and Structure ; Time Allocation and Labor Supply ; Geographic Labor Mobility; Immigrant Workers ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: negative labor supply shock ; training effects after worker outflow ; wage effects ; training incentives ; apprenticeship training supply and demand

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Neuber-Pohl, Caroline ; Pregaldini, Damiano ; Backes-Gellner, Uschi ; Dummert, Sandra ; Pfeifer, Harald
• Event: Veröffentlichung
• (who): Institute of Labor Economics (IZA)
• (where): Bonn
• (when): 2023

Further information

• Handle: http://hdl.handle.net/10419/282779
• Last update: 10.03.2025, 11:43 AM CET