Vocational Training and Policy Measures: Essays in Labor Economics

This dissertation examines vocational training and policy measures against the background of a changing labor market. Structural changes, demographic developments, and exogenous shocks affect the interaction between labor supply, labor demand, and policy measures and institutions. Overall, the four independent empirical chapters provide insights into i) how matching mechanisms in the vocational education and training market operate, ii) how labor market programs can foster human capital investment in the context of a dynamic labor market, and iii) which factors shape citizens’ perceptions of who should receive public support or scarce resources. Chapter 1, joint work with Bernd Fitzenberger, Anna Houštecká, and Leonie Wicht, studies the matching process in the German apprenticeship training market. Estimating an empirical matching function reveals similar elasticities for applicants and vacancies, but different patterns between the pre-pandemic and COVID-19 periods. The results show that demographic change reduces the number of applicants throughout the observation period, while firms’ vacancies had a stabilizing effect on the number of newly signed apprenticeship contracts prior to the pandemic. The paper provides the first causal evidence on matching in the apprenticeship training market. The findings suggest that, to mitigate the downward pressure of demographic change on the number of applicants, policies should aim to strengthen interest in dual vocational education and training among groups that have not traditionally belonged to the target population. Chapter 2, which is single-authored, examines the short-run effects of a new career counseling program that supports employed workers in phases of professional reorientation. The paper shows that, 18 months after the first counseling contact, the likelihood of being in regular employment is lower for participants. However, part of this can be explained by human capital investments, pointing to lock-in effects. The impact on participation in training measures is particularly pronounced among lower-skilled workers, a group that is typically underrepresented in training programs despite high returns to educational investments. Against the background of labor market transformation, which is associated with increasing job changes and the growing importance of vocational training and career (re)orientation, this study provides first evidence on the short-run effects of a counseling program for employed workers outside the traditional target group of active labor market policies. To incentivize firms to maintain training during economically challenging and uncertain times, a support program for training firms was temporarily initiated during the pandemic. However, when distributing government subsidies, political guidelines may differ from individual preferences. Chapter 3, co-authored with Monika Senghaas, uses data from a survey experiment to analyze whether and under which conditions individuals support subsidies for training firms during the pandemic. The results of the vignette study show that respondents’ preferences are broadly aligned with the program’s funding guidelines, while also being more nuanced. In particular, respondents favor support for firms in financial need, and support is higher when firms provide training in areas facing labor shortages. Overall, the results expand existing evidence on public acceptance of policy interventions by applying a theoretical framework that has predominantly been used for individual characteristics to the firm level. The distribution of scarce healthcare resources has far-reaching consequences. For the legitimacy of these ethically challenging decisions broad social acceptance is crucial. Chapter 4, which is co-authored with Christopher Osiander and Julia Schmidtke, uses a conjoint experiment to examine which worker characteristics shape public prioritization decisions regarding intensive care treatment and COVID-19 vaccination. The results show that respondents strongly prioritize workers in essential occupations. In addition, perceived need and perceived control over the situation - operationalized through age, pre-existing conditions, household context, and compliance with pandemic-related policies - influence prioritization decisions. These findings provide important insights for the design of future policy prioritization decisions in times of crisis.