Details
- Publication date
- 30 November 2012
- Author
- European Expert Network on Economics of Education (EENEE)
- Geographical scope
- European Union
- Level of education focus
- Vocational education and training (VET)
- Thematic areas covered
- Education-to-work transitions, education and labour market
- Educational effectiveness and efficiency
- Governance of education
- Investment in education, economic impact of education
- Quality and inclusive education for all
- Skills development
- Whole-school and whole-system approaches and partnerships in education
Description
This policy brief examines the economic rationale behind firms’ decisions to offer apprenticeship training and challenges the notion that such training is a costly investment with little return.
Empirical evidence from Switzerland and Germany shows that, in many cases, firms can recoup their investment during the training period through the productive contribution of apprentices. Firms also benefit from training by identifying and retaining top talent, and by developing skills tailored to their specific needs—especially valuable in tight labor markets. While deregulated labor markets may reduce long-term retention benefits, they increase the need for short-term productivity gains.
A win–win situation arises when apprentices are engaged in meaningful, skill-building work and when firms invest significantly in the training process. This approach helps prevent exploitation and ensures the training remains attractive to talented school leavers.
The brief concludes that well-designed apprenticeship systems can be profitable and educationally valuable.
Author
Stefan C. Wolter
Cite as
Stefan C. Wolter (2012). 'Apprenticeship Training Can Be Profitable for Firms and Apprentices Alike', EENEE Policy Brief 3, 2012
