with respect to the ability of their employees when training is certified by credible external institutions. We apply an … institutions at that the end of apprenticeship training can be signalled to outside employers. Apprenticeship graduates however … cannot signal their work-related ability – measured by a small voluntary bonus paid by the training employer – to the outside …

substitute for workers with completed vocational training. New capital goods are substitutive to low unskilled labor whereas the …

extensive use of temporary workers. Furthermore, these effects are at work only for the use of non-training temporary contracts …, while training temporary contracts are not affected by unions, volatility and their interplay. We argue that this occurs … because non-training temporary contracts can be used by firms as a buffer stock to cope with uncertainty and by unions to …