Occupational Mobility after Apprenticeship - How Effective is the German Apprenticeship System?

Abstract

In this paper we provide evidence on the effectiveness of the German apprenticeship system in enhancing workers' productivity. More specifically, we estimate earnings differentials between those who subsequently leave the occupation they were apprenticed in and those who remain in their training occupation. Some authors have beenconcerned with the potential productivity- and earnings-decreasing effects of occupational turnover. Yet, we find that average earnings are reduced only for a minority among those who leave the apprenticeship occupation. This is evidence in favor of the effectiveness of the German apprenticeship system.