Template-type: ReDif-Paper 1.0
Author-Name: Muehlemann, Samuel
Author-Name: Pfann, Gerard
Author-workplace-name: RS: GSBE Theme Learning and Work, RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Creativity, Innovation & Entrepreneurship , Organisation,Strategy & Entrepreneurship
Author-Name: Pfeifer, Harald
Author-Name: Dietrich, Hans
Title: Supply shocks in the market for apprenticeship training
Abstract: We present a model with heterogeneous inputs and constant elasticity of substitution to examine the possible effects of a supply shock in the market for apprenticeship<br/>training. The model’s predictions are tested using data from a German high school reform that led to a one-time increase in the supply of highly educated apprentices. A difference-in-differences estimation strategy exploits regional variation in the timing of implementation, and an instrumental variable approach identifies the supply shock effects. We find that apprenticeship contracts among individuals with a high school degree increased by 7.8%, while apprentice wages were unaffected by the supply<br/>shock. Moreover, we find no evidence of substitution effects, as the number of training contracts among individuals with a lower-level school degree remained unchanged. Our model predicts that such effects may occur when wages are sticky for apprentices with<br/>a high level of education relative to their productivity, which signals inefficiencies in the market for apprenticeship training.
Classification-JEL: i21,j20
Series: GSBE Research Memoranda
Creation-Date: 20201221
Number: 036
File-URL: https://cris.maastrichtuniversity.nl/ws/files/60783482/RM20036.pdf
File-Format: application/pdf
File-Size: 2030335
Handle: Repec:unm:umagsb:2020036
DOI: 10.26481/umagsb.2020036