Comparative study of costs and benefits of apprenticeship training in Austria and Switzerland shows schemes are effective in different environments

Abstract

Purpose The purpose was to compare the net costs and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many similarities but also critical institutional differences. Design/methodology/approach The authors looked at detailed workplace data about the costs and benefits of apprenticeship training, as well as hiring costs for skilled workers from the external labor market. The authors use nearest-neighbor matching models to compare Austrian and Swiss firms. Findings The main results showed an Austrian firm makes an average of €4,200 per year net investment per apprentice, whereas a comparable Swiss firm generates a net benefit of €3,400 in the same occupations. The differences in net costs could be explained, the authors said, by the different wage structures in the two countries. However, the situation was complicated by the fact that the relatively high apprentice wage in Austria contributed to the survival of firm-based apprenticeship training. Originality/value The authors said their results showed that countries expanding their apprenticeship systems should consider different national practices.