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Apprenticeship training in Denmark : the impacts of subsidies

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  • 0000906

    Final published version, 149 KB, PDF document

  • Niels Chr. Westergård-Nielsen, Denmark
  • Anders Rue Rasmussen, Denmark
  • Centre for Labour Market and Social Research
  • http://www.asb.dk/omos/institutter/departmentofeconomics/
For years, Denmark has maintained and developed its apprenticeship system which is comparable to the German system. Today, about 40% of the youth cohorts get apprenticeship training. The paper describes the basic functioning of the labour market of apprentices. It is initially shown how the wage and unemployment rates of skilled workers who have served an apprenticeship differ from those of non-skilled workers. In recent years there have been periods with serious mismatches between the demand for and the supply of apprenticeships. Through the 80's subsidies were introduced to overcome this shortage. The main purpose of this paper is to investigate the possible impact of these subsidies. A unique longitudinal data set that enables us to follow 1000 work places from 1980 to 1991 is applied. This makes it possible to control for observed and unobserved work place effects. The estimates show that the subsidies have had an impact on the supply of places in some industries while others are not affected at all. The total effect has been compared to the costs and it is found that the total costs per extra apprenticeship is about 54,000 DKK. Finally, the results are used to simulate the effects of changing the subsidies.
Original languageEnglish
Publication statusPublished - 1997

    Research areas

  • Lærlingeuddannelse, Subsidier, Danmark, HHÅ forskning, Apprenticeship training, Subsidies

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