Matching Training and Jobs: The Fit Between Vocational Education and Employment in the German Labour Market

Abstract

The German vocational education system, especially its dual system of apprenticeship training, id often praised for providing vocational skills geared to current practices in specific occupations. Yet only about half of all Germans currently have jobs that match their vocational education. This paper uses data from the German Socio-Economic Panel, a nationally representative household panel study, to examine a variety of individual and structural level variables hypothesized to influence the likelihood of an individual being employed in a position that fits his or her vocational training. It also indentifies factors that influence the probability that an individual moves from a job that does not fit his or her training to a position that does. Finally, the paper examines earnings differences between persons with varying types of vocational education and considers if these differences depend on whether or not an individual is employed in a job that fits.