Browse IFS
Publication types
IFS Working Papers
January 2009 W09/06
Article
Career progression and formal versus on-the-job training
Type: IFS Working Papers
ISSN: 1742-0415
New version: W10/13 [Details]
Previous version: IFS Working Papers [Details]

Download BibTex file | 

We model the choice of individuals to follow or not apprenticeship training and their subsequent career. We use German administrative data, which records education, labour market transitions and wages to estimate a dynamic discrete choice

model of training choice, employment and wage growth. The model allows for returns to experience and tenure, match specific effects, job mobility and search frictions. We show how apprenticeship training affects labour market careers and we quantify its benefits, relative to the overall costs. We then use our model to show how two welfare reforms change life-cycle decisions and human capital accumulation: One is the introduction of an Earned Income Tax Credit in Germany, and the other is a reform to Unemployment Insurance. In both reforms we find very significant impacts of the policy on training choices and on the value of realized matches, demonstrating the importance of considering such longer term implications.

Download full version (PDF 440 KB)

Search

Title (or part of title)
Author surname (or part of surname)

Recent publications
View all IFS Working Papers in the series

Recent IFS Working Papers

Subscribe via one of these feeds for IFS Working Papers:
RSS feed
Atom feed