Returns to Apprenticeship Training in Austria: Evidence from Failed Firms

Arbeitspapier

Little is known about the payoffs to apprenticeship training in the German speaking countries for the participants. OLS estimates suggest that the returns are similar to those of other types of schooling. However, there is a lot of heterogeneity in the types of apprenticeships offered, and institutional descriptions suggest that there might be an important element of selection in who obtains an apprenticeship, and what type. In order to overcome the resulting ability bias we estimate returns to apprenticeship training for apprentices in failed firms in Austria. When a firm fails, current apprentices cannot complete their training in this firm. Because apprentices will be at different stages in their apprenticeship at that time, the failure of a firm will manipulate the length of the apprenticeship period completed for some apprentices. The time to the firm 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 0714

Classification and Topics

• Classification: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Wage Level and Structure; Wage Differentials
• Subject: Human capital ; returns to schooling ; firm-based training ; ability bias ; Betriebliche Ausbildung ; Bildungsertrag ; Bildungsniveau ; Humankapital ; Schätzung ; Österreich

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fersterer, Josef ; Pischke, Jörn-Steffen ; Winter-Ebmer, Rudolf
• Event: Veröffentlichung
• (who): Johannes Kepler University of Linz, Department of Economics
• (where): Linz
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/73269
• Last update: 10.03.2025, 11:44 AM CET