Samuel Muehlemann and Stefan C. Wolter
The purpose of this paper is to simulate the potential costs and benefits for Spanish firms providing dual apprenticeship training.
Abstract
Purpose
The purpose of this paper is to simulate the potential costs and benefits for Spanish firms providing dual apprenticeship training.
Design/methodology/approach
The paper conducts simulations of ten training occupations in six different industries in Spain. For these simulations, the authors combined Spanish wage data and the existing training curriculum regarding instruction times in vocational school in Spain with data from Swiss firms offering training in similar occupations. These data contain information regarding the amount of workplace training, relative apprentice productivity, and the relative importance of non-wage training costs (such as training equipment).
Findings
The authors found that training occupation, training scenario, and firm size are important determinants of the authors’ simulations for the expected net costs of apprenticeship training in Spanish firms. Consequently, the break-even level of apprentices’ wages differs significantly by training occupation and training scenario, suggesting that one prescribed apprentice wage for all sectors and occupations would be detrimental to the willingness of many firms to provide training places.
Practical implications
Dual apprenticeship training may improve the labor market transition for Spanish youth. The paper provides guidelines for regulatory frameworks that allow firms to provide apprenticeship training without having to bear net training costs – an important condition given that apprentices are free to leave the training firm upon graduation.
Social implications
The authors’ simulations show that Spanish firms would be able to provide high-quality apprenticeship training programs that would also appeal to more talented youth because of the combination of a decent earning opportunity during the apprenticeship and good future career options.
Originality/value
This paper provides novel and direct empirical evidence regarding the framework conditions within the Spanish apprenticeship system, thus incentivizing both firms and individuals to participate in dual apprenticeship training programs.
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Luca Moretti, Martin Mayerl, Samuel Muehlemann, Peter Schlögl and Stefan C. Wolter
The purpose of this paper is to compare a firm’s net cost and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many…
Abstract
Purpose
The purpose of this paper is to compare a firm’s net cost and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many similarities but some critical institutional differences.
Design/methodology/approach
The authors draw on detailed workplace data with information on the costs and benefits of apprenticeship training, as well as on hiring costs for skilled workers from the external labour market. The authors use nearest-neighbour matching models to compare Austrian firms with similar Swiss firms based on observable characteristics.
Findings
On average, a Swiss firm generates an annual net benefit of €3,400 from training an apprentice, whereas a firm in Austria incurs net costs of €4,200. The impetus for this difference is largely a higher relative apprentice pay in Austria. However, compared with Swiss firms, Austrian firms generate a higher post-training return by retaining a higher share of apprentices and savings on future hiring costs.
Practical implications
The authors demonstrate that apprenticeship systems can exist under different institutional environments. For countries currently in the process of establishing or expanding apprenticeship systems, the comparative analysis clearly shows that policymakers should consider more than just one country’s particular apprenticeship model.
Originality/value
The authors provide a first comparative analysis between two apprenticeship countries that empirically assesses a firm’s costs and benefits of training during an apprenticeship programme and also provides a monetary value of a particular type of post-training benefits that firms can generate by retaining former apprentices as skilled workers (i.e. savings in future hiring costs for skilled workers).
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Benno Koch, Samuel Muehlemann and Harald Pfeifer
Works councils have the legal right to participate in a firm’s training process and, where necessary, call for a replacement of training instructors. The purpose of this paper is…
Abstract
Purpose
Works councils have the legal right to participate in a firm’s training process and, where necessary, call for a replacement of training instructors. The purpose of this paper is to empirically test whether works councils are associated with a higher quality of apprenticeship training – or its inputs or outputs – in Germany.
Design/methodology/approach
The authors use two representative cross-sectional surveys of German workplaces in 2007 and 2012/2013 that were conducted by the Federal Institute for Vocational Education and Training in Germany. To account for selection on observables, the authors apply nearest neighbor matching models to estimate the extent to which works councils are associated with training quality.
Findings
The results shed light on the influence of works councils on the quality of apprenticeship training in Germany. Based on a quality model, the authors show that works councils are associated with a (moderately) higher output quality of apprenticeships, particularly with respect to the share of retained apprentices. However, the authors do not find empirical evidence for a positive association between works councils and input- and process-quality indicators.
Research limitations/implications
Although the identification of causal effects due to the existence of works councils is difficult and cannot be fully addressed in the analysis, the authors can use a number of important control variables at the workplace level. The results suggest that a works council only plays a moderate role in enhancing the quality of the German apprenticeship system.
Originality/value
The authors provide the first direct empirical evidence of how the existence of a works council is associated with the input-, process- and outcome-quality measures of the German apprenticeship system.
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Samuel Muehlemann, Romy Braendli and Stefan C. Wolter
The paper aims to test whether a firm's provision of training depends on the intake quality of trainees. While a firm may just treat each trainee equally, independent of his or…
Abstract
Purpose
The paper aims to test whether a firm's provision of training depends on the intake quality of trainees. While a firm may just treat each trainee equally, independent of his or her intake quality, firms may alternatively also provide more training to less able individuals or focus on the most able ones. The authors develop a theoretical framework that illustrates under what circumstances a firm chooses a particular training strategy.
Design/methodology/approach
The paper uses representative administrative survey data for more than 1,400 Swiss establishments. To test their theoretical predictions about a firm's training strategy, the authors apply multivariate and instrumental variable (IV) regression models. In addition, they use case study evidence from a large Swiss retailer, allowing them to analyze how different instructors in a specific firm react when confronted with apprentices of different intake qualities.
Findings
The authors find that a firm's training strategy depends on a trainee's intake quality and the expected net costs of a particular training occupation. Although firms generally provide less training to less qualified trainees, the authors find that a firm is willing to compensate low‐ability trainees with additional training when training is on average profitable in the short run.
Practical implications
When training regulations force firms to follow an investment‐oriented training strategy (net costs in the short run), then low‐ability trainees will not receive additional instruction time and the dropout risk increases.
Social implications
Generating a regulatory framework that allows firms to achieve a net benefit from work‐based training is crucial for low‐ability trainees to have the opportunity to receive additional training investments that compensate for a lack of competences when training commences.
Originality/value
This paper provides novel and direct empirical evidence on how firms adjust their training provision when faced with heterogeneity in the ability of their trainees.
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Kunwar Saraf, Karthik Bajar, Aaditya Jain and Akhilesh Barve
This study aims to determine the barriers hindering the incorporation of blockchain technology (BCT) in two key service industries – hotel and health care – as well as to assess…
Abstract
Purpose
This study aims to determine the barriers hindering the incorporation of blockchain technology (BCT) in two key service industries – hotel and health care – as well as to assess their readiness for implementing BCT after overcoming the barriers.
Design/methodology/approach
The barriers of this study are determined through two phases: a review of prior literature and obtaining expert opinions, which are then analyzed to identify specific barriers that are impeding the incorporation of BCT. Moreover, to generate a blockchain implementation reluctance index (BIRI), this study presents an interval-valued intuitionistic fuzzy set (IVIFS) that uses graph theory and matrix approach (GTMA). The permanent function in the GTMA approach is computed using the PERMAN algorithm. Finally, to compare the readiness of the hotel and health-care industries to adopt BCT, the BIRI values are plotted and evaluated.
Findings
The barriers identified by this study are listed under five major headings, namely, financial, operational, behavioral, technical and legal. This study revealed that the operational and technical barriers of BCT are critically hindering its widespread integration in hotel and health-care industries. Furthermore, on comparing the BIRI values of both industries, the result suggested that the hotel industry needs to work more on these barriers to effectively incorporate BCT. Besides the comparison, the BIRI values clearly indicate that both industries have to put a lot of effort into the mitigation of the barriers found by this study to successfully integrate BCT.
Research limitations/implications
The experts’ opinions are used to evaluate the identified barriers, which raises the chance that the opinions are prejudiced based on the experts’ perspectives and ideologies. The sensitivity of decision-maker loads toward preference outcomes is not analyzed in this manuscript. Therefore, any recent sensitivity analysis may be considered a prospective field for future research. This study applies a multicriteria decision-making (MCDM) approach, IVIFS–GTMA, which limits the evaluation of the influence caused by individual barriers on the integration of BCT in the hotel and health-care industries. Henceforth, in future investigations, alternative MCDM methods may be used to analyze individual barriers.
Practical implications
According to the findings, if the hotel or health-care industry aims to incorporate BCT in its supply chain operations, it is recommended to emphasize more on the operational barriers along with the technical and behavioral barriers. The barriers mentioned in this manuscript can be used as guidance for developers in their development activities, such as scalability concerns, establishment costs, the 51% attack and the inefficient nature of BCT. Furthermore, they may address the potential users’ negative perceptions about security, privacy, trust and risk avoidance through creatively developed blockchain solutions to promote BCT implementation.
Originality/value
To the best of the author’s knowledge, this is the first study that identifies barriers toward BCT incorporation in the major service industries, i.e. hotel and health care. Moreover, this is the first study that compares the preparedness of the hotel and health-care industries to determine the industry that requires more work to implement BCT.