Training intensity and first labor market outcomes of apprenticeship graduates

The apprenticeship system is the most important source of formal post‐secondary training in Germany. Using German register data – the IAB Employment Sample – it is found that apprentices staying with their training firm after graduation have a longer first‐job durations but not higher wages than apprentices leaving the training firm. Retention rates, first job durations, and post‐apprenticeship wages are all increasing functions of training intensity. Some implications for the ongoing debate as to why firms are willing to invest in general training are discussed.