Are Firm Innovativeness and Firm Age Relevant for the Supply of Vocational Training? – A Study Based on Swiss Micro Data

In this study we investigated the determinants (a) of the propensity of Swiss firms to train apprentices and (b) of the intensity of apprentice training as measured by the employment share of apprentices. Innovation, firm age and competition conditions on the product market are possible determining factors that are especially emphasized in this investigation. In a further step, we analyzed the impact of apprentice training on labour productivity when apprentice training is considered as an additional production factor in the framework of a production function. We found that the skill composition of the employment, innovation activities, firm age, labour costs, capital intensity, and competitive pressures all play a positive or negative role, even if not at the same extent, in determining the propensity and/or intensity of apprentice training. A further finding was that training propensity and/or training intensity correlate negatively with labour productivity.