Details
- Publication date
- 17 October 2013
- Authors
- Directorate-General for Education, Youth, Sport and Culture | European Expert Network on Economics of Education (EENEE)
- Geographical scope
- European Union
- Level of education focus
- Adult education
- Non-formal and informal learning
- School education
- 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
- Lifelong learning
- Monitoring and quality assurance
- Quality and inclusive education for all
- Skills development
- Teachers and trainers
- Whole-school and whole-system approaches and partnerships in education
Description
This report analyses the economic rationale for firms to offer apprenticeships, focusing on the cost-benefit ratio of training from the employer’s perspective. Using representative data mainly from Germany and Switzerland, it shows that many firms can recoup their training costs during the apprenticeship period, particularly when apprentices contribute significantly to productive work.
Key factors that influence the profitability of apprenticeship systems include training regulations, wage structures, labour market competition, and the duration of training programmes. Firms are more willing to invest in training when they can either recover costs directly or benefit in the long run by retaining skilled workers and reducing recruitment expenses.
Small and medium-sized enterprises (SMEs), which make up a large share of European firms, face higher relative training costs and are more sensitive to cost-benefit outcomes. The report emphasizes the importance of high-quality data to assess and improve the effectiveness of public policies supporting apprenticeships across Europe.
Authors
Samuel Muehlemann and Stefan C. Wolter
Cite as
Muehlemann, S., & Wolter, S. C. (2013). Return on investment of apprenticeship systems for enterprises: Evidence from cost-benefit analyses. EENEE Analytical Report No. 16.
