Studies on Continuing Vocational Training in Germany: An Empirical Assessment

221 Pages·2007·1.481 MB·English

by  Dr. Anja Kuckulenz (auth.)

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Anja Kuckulenz
Studies on Continuing
Vocational Training
in Germany
An Empirical Assessment
With13Figuresand65Tables
Physica-Verlag
ASpringerCompany
SeriesEditor
Prof.Dr.Dr.h.c.mult.WolfgangFranz
Author
Dr.AnjaKuckulenz
CentreforEuropeanEconomicResearch(ZEW)
L7,1
68161Mannheim
Germany
[email protected]
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Preface
This study is an empirical assessment of continuing vocational training in
Germanyanddiscusses determinantsandconsequencesoftraining.The work
described in this dissertation was carried out at the Centre for European
EconomicResearch(ZEW).IamverygratefultomysupervisorProf.Dr.Dr.
h.c. mult. Wolfgang Franz, who supported and encouraged me throughout
this work. I would like to thank him for always having a sympathetic ear to
my questions and for very helpful assistance. I am also indebted to Prof. Dr.
Walter Oechsler, who kindly accepted to be my second supervisor. My work
benefited from discussions with him and his doctoral students.
This work has been made possible through the financial support of
the Deutsche Forschungsgemeinschaft (DFG) within the framework of the
projects “Bildung und Verwertung von differenziertem Humankapital” and
“BetrieblicheArbeitsnachfrageundQualifikationsanstrengungenauffriktionel-
len und heterogenen Arbeitsm¨arkten”, which I gratefully acknowledge. This
project is part of the DFG ResearchGroup “Heterogeneous Labour: Positive
and Normative Aspects of the Skill Structure of Labour”, and I thank all
research group members for productive discussions at several workshops.
Ihavederivedenormouspersonalandscientificbenefitfrommytimespent
at the ZEW, both from the people who work here and the environment that
they have created. I thank my colleagues from the ZEW’s Department of
Labour Markets, Human Resources and Social Policy for fruitful exchange of
ideasonmethodologicalissuesaswellasgivingpreciousadviceoneconometric
matters.The pleasantandconstructive workingenvironmentmade this piece
of researchpossible.
Moreover, I want to thank my co-authors Alfred Garloff, Michael Maier,
and Thomas Zwick for great teamwork that made me enjoy doing research.
Additionally,I liketo thankThomasZwickfor helpingme to getmy research
work started and following it with support. My roommate Alfred Garloff fol-
lowedallforwardas wellas backwardsteps of this workand alwayspatiently
discussedthe mostvariousissueswith me.Nextto myco-authors,alsoFried-
helm Pfeiffer, Martin Schu¨ler, and Alexandra Spitz were attentive referees of
VI Preface
(parts of) my first draft and gave valuable comments. Jenny Meyer, Iliyan
Stankov,Diliana Stoimenova, and Tobias To¨nnesmann providedexcellent re-
search assistance. All remaining errors are, of course, my own responsibility.
Last but not least, I would mostly like to thank my family for consistent
affection and support and Martin, who motivated me to get this work done.
Mannheim, April 2007 Anja Kuckulenz
Contents
1 Introduction............................................... 1
2 Continuing Training ....................................... 9
2.1 Theoretical Background: A Short Introduction to the
Training Literature ...................................... 10
2.2 Institutional Background ................................. 11
2.2.1 Educational Policy ................................ 11
2.2.2 Legal Backgroundof Further Education .............. 12
2.2.3 Continuing Training as a Measure of Active Labour
Market Policy..................................... 13
2.2.4 Financial Furtherance of Continuing Training ......... 14
2.2.5 Continuing Training in Collective Agreements......... 16
2.2.6 Suppliers of Further Education...................... 17
2.3 Some Stylised Facts...................................... 17
2.3.1 Training in Europe ................................ 18
2.3.2 Participation and Investment in Continuing Training... 20
2.4 Continuing Training in Empirical Research ................. 25
2.4.1 Introduction ...................................... 25
2.4.2 Data............................................. 26
2.4.3 Empirical Evidence................................ 30
2.4.4 Comparison of Results ............................. 45
2.4.5 Conclusion ....................................... 50
3 Heterogeneous Effects of Training on Earnings............. 53
3.1 Instrumental Variable Estimation.......................... 55
3.1.1 Introduction ...................................... 55
3.1.2 BackgroundDiscussion and Econometric Methods ..... 56
3.1.3 Endogeneity of Training............................ 58
3.1.4 Data............................................. 60
3.1.5 Descriptive Statistics .............................. 63
3.1.6 Empirical Evidence................................ 64
VIII Contents
3.1.7 Conclusion ....................................... 68
3.2 Sector Differences in Training Returns: The Case of Personal
Services ................................................ 68
3.2.1 BackgroundDiscussion............................. 68
3.2.2 Data............................................. 71
3.2.3 Empirical Evidence................................ 72
3.2.4 Conclusion ....................................... 76
3.3 Non-Parametric Estimation: Local Instrumental Variables .... 77
3.3.1 Introduction ...................................... 77
3.3.2 BackgroundDiscussion............................. 78
3.3.3 Econometric Model................................ 80
3.3.4 Data............................................. 84
3.3.5 Implementation and Results ........................ 84
3.3.6 Conclusion ....................................... 86
3.4 The Influence of Different Training Types on Earnings ....... 87
3.4.1 Introduction ...................................... 87
3.4.2 Empirical Strategy and Results ..................... 88
3.4.3 Conclusion ....................................... 94
3.5 Summary of Results and Conclusion ....................... 94
4 Training, Mobility, and Wages: Specific Versus General
Human Capital ............................................ 97
4.1 Introduction ............................................ 98
4.2 Derivation of Hypotheses and Estimation Strategy: Mobility
Effect of Training and Wage Effect of Mobility ..............100
4.2.1 Mobility Effect of Training: Hypothesis Derivation.....100
4.2.2 Mobility Effect of Training: Estimation Strategy.......102
4.2.3 Wage Effect of Mobility: Hypothesis Derivation .......103
4.2.4 Wage Effect of Mobility: Estimation Strategy .........104
4.3 Data and Descriptive Evidence............................106
4.4 Empirical Results: Mobility Effect of Training and Wage
Effect of Mobility........................................110
4.4.1 Mobility Effect of Training .........................110
4.4.2 Wage Effect of Mobility ............................111
4.5 Conclusion .............................................115
5 Comparison of Wage and Productivity Effect: A Sectoral
Analysis ...................................................117
5.1 Introduction ............................................117
5.2 BackgroundDiscussion...................................118
5.3 Data Set ...............................................121
5.4 Descriptive Statistics.....................................123
5.5 Basic Model ............................................123
5.5.1 Estimation Strategy ...............................124
5.5.2 Empirical Results .................................128
Contents IX
5.6 Differentiation Between Low- and High-Skilled ..............136
5.6.1 Extension of the Model ............................136
5.6.2 Empirical Results .................................138
5.7 Conclusion .............................................139
6 Summary and Conclusion..................................143
Appendix......................................................149
A Further Tables and Figures for Chapter 2 ..................151
B Further Tables and Figures for Chapter 3 ..................171
C Further Tables and Figures for Chapter 4 ..................185
D Further Tables and Figures for Chapter 5 ..................193
E Glossary ...............................................197
List of Tables ..................................................201
List of Figures.................................................205
References.....................................................207