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Abstract:

cover
CEP Discussion Paper
The Promise of Workplace Training for Non-College Bound Youth: Theory and Evidence from German Apprenticeship
Damon Clark and René Fahr March 2002
Paper No' CEPDP0518:
Full Paper (pdf)

JEL Classification: C29;J24;J31;J62


Tags: german apprenticeship training; human capital; occupational mobility; wages.

This paper assesses the potential of `workplace training' with reference to German Apprenticeship. When occupational matching is important, we derive conditions under which firms provide `optimal' training packages. Since the German system broadly meets these conditions, we evaluate the effectiveness of apprenticeship using a large administrative dataset. We find returns to apprenticeship for even the lowest ability school-leavers comparable to standard estimates of the return to school, and show that training is transferable across a wide range of occupations, such as a one-digit occupation group. We conclude that the positive experience with German Apprenticeship Training may guide the design of similar policies in other countries.