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The Effect of the Business Cycle on Apprenticeship Training: Evidence from Germany

Aufsätze referiert extern - Web of Science

Guido Baldi, Imke Brüggemann-Borck, Thore Schlaak

In: Journal of Labor Research 35 (2014), Iss. 4, 412-422


The benefits of dual apprenticeship programs are usually discussed in the context of reducing structural unemployment rates, especially among the young. Related to this, the long-run benefits of dual apprenticeship programs are extensively analyzed in the literature. However, empirical evidence regarding the short-run effects of the business cycle on the number of apprenticeships is scarce. In this paper, we use panel-data at the German federal states level ranging from 1999 through 2012 to analyze the effects of the business cycle on the number of new apprenticeship contracts. Using different sample periods and model specifications, we do not find a robust and significant effect of the business cycle on apprenticeships. Hence, the apprenticeship system seems to dampen the volatility of youth unemployment.

Thore Schlaak

Research Associate in the Forecasting and Economic Policy Department

Guido Baldi

Research Associate in the Macroeconomics Department

JEL-Classification: E32;I21;J63
Keywords: Economic fluctuations, Education, Hiring, Unemployment