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The effect of economic downturns on apprenticeships and initial workplace training: a review of the evidence

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Abstract

The existing empirical evidence on the relationship between apprenticeships, initial workplace training and economic downturns, is relatively scarce. The bottom line of this literature is that ratio of apprentices to employees tends to be (mildly) pro-cyclical and to decline during a recession, with the notable exception of the Great Depression, when it rose (at least in England). When broader measures of training are considered, which exclude apprentices, the weight of the evidence is in favour of counter-cyclical training incidence. This paper suggests that a possible reconciliation of these findings is based on recognizing that firms may have incentives to train incumbents during a downturn and at the same time to reduce the recruitment and training of young employees, who are engaged in the transition from school to work.

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Authors and Affiliations

  1. University of Padova, CESifo and IZA, Padova, Italy

    Giorgio Brunello

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  1. Giorgio Brunello
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Correspondence to Giorgio Brunello.

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Paper prepared for the Education and Training Policy Division, OECD, Paris as part of Learning for Jobs: OECD Reviews of Vocational Education and Training (http://www.oecd.org/document/42/0.3343.en_2649_39263238_40344106_1_1_1_1,00.html)

I am grateful to Kenn Ariga, Andrea Bassanini, Maria De Paola, Simon Fields, Malgorzata Kuczera, George Psacharopoulos, Paul Ryan, Jürg Schweri, Catherine Sofer, Thomas Zwick and Stefan Wolter for help and suggestions. The usual disclaimer applies.

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Brunello, G. The effect of economic downturns on apprenticeships and initial workplace training: a review of the evidence. Empirical Res Voc Ed Train 1, 145–171 (2009). https://doi.org/10.1007/BF03546484

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