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Journal of Labor Research

, Volume 35, Issue 4, pp 412–422 | Cite as

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

  • Guido BaldiEmail author
  • Imke Brüggemann-Borck
  • Thore Schlaak
Article

Abstract

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.

Keywords

Economic fluctuations Education Hiring Unemployment 

JEL Classification

E32 I21 J63 

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Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Guido Baldi
    • 1
    • 2
    Email author
  • Imke Brüggemann-Borck
    • 3
  • Thore Schlaak
    • 4
  1. 1.German Institute for Economic Research (DIW)BerlinGermany
  2. 2.Department of EconomicsUniversity of BernBernSwitzerland
  3. 3.Department of Cooperative StudiesBerlin School of Economics and LawBerlinGermany
  4. 4.Research Cluster Macroeconomics and Financial MarketsGerman Insitute for Economic Research (DIW)BerlinGermany

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