Apprenticeship non-completion in Germany: a money matter?

Abstract German establishments heavily rely on the apprenticeship system for skill supply. With one in four contracts ending before successful completion, it is interest of and policy-makers to determine factors, which reduce non-completion. This paper investigates role wages income prospects after completion non-completion Germany. For this purpose, study identifies incidences a large sample administrative data employment biographies estimates piecewise exponential model hazard with shared frailties by occupations. The results suggest robust significant association both skilled worker wages. All else at means, apprenticeships are paid 5% more than mean wage, average have 0.8 percentage points higher estimated survival rate. In turn, an expected lead job that above average, has rate, 3.1 average. These findings highlight importance