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Because of an important consistency in the prestige ratings of occupations from respondents across various social groups, countries and over time, the roots of divergent perceptions of the social prestige of occupations have attracted little attention. Yet structural changes in modern economies, brought by rapid globalization and technological change, and the polarization of political life might have triggered a growing contestation of the traditional foundations of modern societies. We contribute to this important question by analyzing a unique data set in Switzerland based on a survey of adults’ perception of the social prestige of occupations. As our results indicate, respondents identifying with major or minor right-wing populist parties do not reject the dominant view of the prestige of occupations. Rather, adherence to radical political ideologies, whether at the far left or far right, correlates with a lower impact of the educational requirements of occupations on their perceived social prestige. Interestingly, individuals at the far left of the ideology spectrum also value autonomy at the workplace less, while voters of the New and Centre-Left put a stronger emphasis on problem-solving skills for the prestige of occupations.

We expand the scope of the literature on willingness to compete by asking how it varies with academic ability and whether and how it predicts career choices at different ability levels. The literature so far has mainly focused on career choices made by students at the top of the ability distribution, particularly in academic institutions. We experimentally elicit the willingness to compete of 1500 Swiss lower-secondary school students at all ability levels and link it to the study choice that students make upon finishing compulsory school. Our analysis of the relationship between willingness to compete and the study choice considers the full set of study options, including the options in vocational education. We find that willingness to compete predicts which study option high-ability students choose, not only among academic specializations but also among vocational careers, and, importantly, it also predicts whether low-ability boys pursue upper-secondary education upon finishing compulsory schooling. Our second main contribution is to systematically explore how willingness to compete varies with academic ability. We find that high-ability boys, but not girls, are substantially more willing to compete compared to all other children. As a consequence, the gender gap in willingness to compete is significantly lower among low-ability students than among high-ability students. Overall, our study highlights that insights from the literature on willingness to compete are relevant for a broader set of policy questions, populations and choices.

The economic reasons why firms engage in apprenticeship training are twofold. First, apprenticeship training is a potentially cost-effective strategy for filling a firm’s future vacancies, particularly if skilled labor on the external labor market is scarce. Second, apprentices can be cost-effective substitutes for other types of labor in the current production process. As current and expected business and labor market conditions determine a firm’s expected work volume and thus its future demand for skilled labor, they are potentially important drivers of a firm’s training decisions. Empirical studies have found that the business cycle affects apprenticeship markets. However, while the economic magnitude of these effects is moderate on average, there is substantial heterogeneity across countries, even among those that at first sight seem very similar in terms of their apprenticeship systems. Moreover, identification of business cycle effects is a difficult task. First, statistics on apprenticeship markets are often less developed than labor market statistics, making empirical analyses of demand and supply impossible in many cases. In particular, data about unfilled apprenticeship vacancies and unsuccessful applicants are paramount for assessing potential market failures and analyzing the extent to which business cycle fluctuations may amplify imbalances in apprenticeship markets. Second, the intensity of business cycle effects on apprenticeship markets is not completely exogenous, as governments typically undertake a variety of measures, which differ across countries and may change over time, to reduce the adverse effects of economic downturns on apprenticeship markets. During the economic crisis related to the COVID-19 global pandemic, many countries took unprecedented actions to support their economies in general and reacted swiftly to introduce measures such as the provision of financial subsidies for training firms or the establishment of apprenticeship task forces. As statistics on apprenticeship markets improve over time, such heterogeneity in policy measures should be exploited to improve our understanding of the business cycle and its relationship with apprenticeships.

Introduction: This study examines the influence of major fluctuations in the number of students enrolling at university on the probability of dropout or a switch to a different course of study. Findings from the US show that a pronounced increase in student numbers leads to more dropouts. Materials and methods: This article provides an analysis of this relationship for the first time outside the US and for an entire university system. We use administrative data for all the students who started studying at Swiss universities between 1980 and 2001. Results: The results suggest a significant relationship between positive cohort growth and the probability of dropout. A reduction in student numbers, on the other hand, does not increase the probability of persistence. Discussion: Despite the negative influence of a big cohort on the probability of persistence, no statistically significant relationship exists, by contrast, between the change in student numbers and the probability of a student switching to a different course of study.

Vocational education and training (VET) often suffers from a lack of social standing among students and their families. Parents have been shown to discard vocational education because of social status maintenance considerations. How adults perceive the social prestige of occupations might therefore be key in understanding the reasons of the image deficit of VET. While the existing literature on occupational prestige ranking stresses the role of the salience in science or the training intensiveness of occupations for the perception of their social prestige, it fails at accounting for the distinct types of knowledge involved and the variety of the skill content of occupations. More precisely, differences in the salience of physical tasks and cognitive skills should be particularly relevant. We contribute to the literature by analysing a unique data set in Switzerland, a country characterized by a well-established and well-functioning vocational education and system, based on a survey of adults’ perception of the social prestige of occupations requiring academic or vocational education. Using several dimensions of the skill content of occupations, we find that the sophistication of skills performed within occupations, whether manual or intellectual, clearly improves the social prestige of the occupations investigated. However, the negative or positive effect of the previous dimensions of the skill content of occupations is small to inexistent at lower levels of educational requirements and becomes stronger as occupations become more training intensive. The desirability of occupations requiring vocational education depends therefore less on the skill content of occupations than on the level of education that is required.

We empirically investigate whether the relationship between the fraction of filled apprenticeships in a particular occupation in the past and the fraction of prospective apprentices having ...

This paper examines how exposure to students identified as gifted (IQ ≥ 130) affects achievement in secondary school, enrollment in post-compulsory education, and occupational choices. By using student-level administrative data on achievement combined with psychological examination records, we study the causal impact of gifted students on their classmates in unprecedented detail. We find a positive and significant effect of the exposure to gifted students on school achievement in both math and language. The impact of gifted students is, however, highly heterogeneous along three dimensions. First, we observe the strongest effects among male students and high achievers. Second, we show that male students benefit from the presence of gifted peers in all subjects regardless of their gender, whereas female students seem to benefit primarily from the presence of female gifted students. Third, we find that gifted students diagnosed with emotional or behavioral disorders have zero-to-negative effects on their classmates' performance, a detrimental effect more pronounced for female students. Finally, exposure to gifted students in school has consequences that extend beyond the classroom: it increases the likelihood of choosing a selective academic track as well as occupations in STEM fields.

Purpose The purpose of this paper is to compare a firm’s net cost and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many similarities but some critical institutional differences. Design/methodology/approach The authors draw on detailed workplace data with information on the costs and benefits of apprenticeship training, as well as on hiring costs for skilled workers from the external labour market. The authors use nearest-neighbour matching models to compare Austrian firms with similar Swiss firms based on observable characteristics. Findings On average, a Swiss firm generates an annual net benefit of €3,400 from training an apprentice, whereas a firm in Austria incurs net costs of €4,200. The impetus for this difference is largely a higher relative apprentice pay in Austria. However, compared with Swiss firms, Austrian firms generate a higher post-training return by retaining a higher share of apprentices and savings on future hiring costs. Practical implications The authors demonstrate that apprenticeship systems can exist under different institutional environments. For countries currently in the process of establishing or expanding apprenticeship systems, the comparative analysis clearly shows that policymakers should consider more than just one country’s particular apprenticeship model. Originality/value The authors provide a first comparative analysis between two apprenticeship countries that empirically assesses a firm’s costs and benefits of training during an apprenticeship programme and also provides a monetary value of a particular type of post-training benefits that firms can generate by retaining former apprentices as skilled workers (i.e. savings in future hiring costs for skilled workers).

Educational decisions are always made under uncertainty. This paper examines the effect of providing information about dropout risks on stated preferences for academic versus vocational education in Switzerland, making use of the fact that there are marked historical and cultural differences in preferences for and enrolment rates in academic vs. vocational education across the different language regions. Since there is some harmonisation in terms of the required cognitive performance for an academic degree, different enrolment rates in academic education need to be partially corrected later, resulting in higher risks of dropout during the program in regions with higher preferences for academic education. By means of a survey experiment, we show that in those language regions with a strong preference for academic education, the disclosure of the risk of dropping out of education has no effect on preferences, while in the regions with less strong preferences for academic education, the information treatment on the risks significantly shifts preferences towards vocational education. Our results suggest that the deterrent effect of a higher risk of dropping out is too small to achieve an efficient allocation of talents, if preferences for a particular type of education are very strong.

Using a unique and original dataset measuring preferences of adults for academic vs. vocational education in Switzerland, we explore differences between Swiss citizens and foreign residents regarding individual preferences for these different types of education. We find that first-generation foreigners exhibit stronger preferences for academic education, whereas the preferences of second-generation foreigners do not significantly differ from those of Swiss citizens. Further, variation across subgroups of foreigners based on their nationality indicates that cultural aspects matter to a certain extent as less well-integrated ethnic groups express stronger preferences for academic education and are also less likely to value the labour market outcomes of vocational education. Interestingly, the presence of a well-established VET system in the country of origin does not appear to strengthen preferences for vocational education in Switzerland. This might be related to less positive labour market outcomes for VET graduates’ countries of origin. published

Willingness to compete has been found to predict individual and gender differences in educational choices and labor market outcomes. We provide further evidence for this relationship by linking Swiss students' Baccalaureate school (high school) specialization choices to an experimental measure of willingness to compete. Boys are more likely to specialize in math in Baccalaureate school. In line with previous findings, competitive students are more likely to choose a math specialization. Boys are more likely to opt for competition than girls and this gender difference in competitiveness could partially explain why girls are less likely to choose a math-intensive specialization.

Building on earlier work that explored within-student variation in hours of instruction across school subjects, we investigate the impact of instruction time on student test scores in Switzerland, as measured by the PISA 2009 test. Our results confirm the results of previous studies of a positive effect of instruction time on student performance. Moreover, we find considerable heterogeneity in the effectiveness of instructional time across ability-related tracks, with the more able students benefitting more. Additional instruction time increases the within-school variance of subject-specific test scores, indicating an increase in educational inequality.

Purpose The purpose of this paper is to simulate the potential costs and benefits for Spanish firms providing dual apprenticeship training. Design/methodology/approach The paper conducts simulations of ten training occupations in six different industries in Spain. For these simulations, the authors combined Spanish wage data and the existing training curriculum regarding instruction times in vocational school in Spain with data from Swiss firms offering training in similar occupations. These data contain information regarding the amount of workplace training, relative apprentice productivity, and the relative importance of non-wage training costs (such as training equipment). Findings The authors found that training occupation, training scenario, and firm size are important determinants of the authors’ simulations for the expected net costs of apprenticeship training in Spanish firms. Consequently, the break-even level of apprentices’ wages differs significantly by training occupation and training scenario, suggesting that one prescribed apprentice wage for all sectors and occupations would be detrimental to the willingness of many firms to provide training places. Practical implications Dual apprenticeship training may improve the labor market transition for Spanish youth. The paper provides guidelines for regulatory frameworks that allow firms to provide apprenticeship training without having to bear net training costs – an important condition given that apprentices are free to leave the training firm upon graduation. Social implications The authors’ simulations show that Spanish firms would be able to provide high-quality apprenticeship training programs that would also appeal to more talented youth because of the combination of a decent earning opportunity during the apprenticeship and good future career options. Originality/value This paper provides novel and direct empirical evidence regarding the framework conditions within the Spanish apprenticeship system, thus incentivizing both firms and individuals to participate in dual apprenticeship training programs.

In countries with an apprenticeship system, training firms typically make a significant investment in general human capital of apprentices in addition to paying an apprentice wage, even though such training contracts are limited for the duration of the apprenticeship period. While a firm’s training costs may be offset by the productive value of apprentices during the training period, firms may also recoup their initial investment by retaining apprentices as skilled workers after graduation. From an individual perspective, high-quality apprenticeship training may be a viable alternative to general education, as direct educational expenditures, and opportunity costs in particular, are lower compared to school-based programs, while lifetime earnings may be equally high. Focusing on apprenticeship training, we discuss the main factors that affect the training decision of firms and individuals, as well as the role of the state. Moreover, we review the recent empirical literature on the relevant economic outcomes of apprenticeship training programs.

Using data from a survey of all high-school graduates in a Swiss canton, we analyze the relationship between students’ political orientation and their choice of a university major. Analyzing this question in the context of the Swiss higher education system adds to the existing literature because unlike students in other countries, Swiss students are completely free to choose their place of study and their major. The selection of a university major is therefore not affected by university admission rules and policies. We find that students in different university majors differ systematically with regard to their political orientation. However, when controlling for socio-demographic factors, school-related aspects and personality, the association between political orientation and educational choice becomes small and mostly statistically non-significant. We can conclude from this that political orientation is not influencing the choice of university major in a causal way.

Purpose: The purpose of this paper is to compare a firm’s net cost and post-apprenticeship benefits of providing apprenticeship training in Austria and Switzerland: two countries with many similarities but some critical institutional differences. Design/methodology/approach: The authors draw on detailed workplace data with information on the costs and benefits of apprenticeship training, as well as on hiring costs for skilled workers from the external labour market. The authors use nearest-neighbour matching models to compare Austrian firms with similar Swiss firms based on observable characteristics. Findings: On average, a Swiss firm generates an annual net benefit of €3,400 from training an apprentice, whereas a firm in Austria incurs net costs of €4,200. The impetus for this difference is largely a higher relative apprentice pay in Austria. However, compared with Swiss firms, Austrian firms generate a higher post-training return by retaining a higher share of apprentices and savings on future hiring costs. Practical implications: The authors demonstrate that apprenticeship systems can exist under different institutional environments. For countries currently in the process of establishing or expanding apprenticeship systems, the comparative analysis clearly shows that policymakers should consider more than just one country’s particular apprenticeship model. Originality/value: The authors provide a first comparative analysis between two apprenticeship countries that empirically assesses a firm’s costs and benefits of training during an apprenticeship programme and also provides a monetary value of a particular type of post-training benefits that firms can generate by retaining former apprentices as skilled workers (i.e. savings in future hiring costs for skilled workers).

Do citizens' preferences about education policies differ across industrialized countries? To gain comparative evidence on public preferences for education spending, we conduct representative experiments with information treatments in Switzerland using identical survey techniques previously used in Germany and the United States. In Switzerland, providing information about actual spending and salary levels reduces support for increased education spending from 54 to 40 percent and for increased teacher salaries from 27 to 19 percent, respectively. The broad patterns of education policy preferences are similar across the three countries when the role of status-quo and information are taken into account.

Many extensions of classical human capital theory regard labour market rigidities as a prerequisite for firms to invest in general training. From this perspective, the German labour market reforms since 2003 should have reduced their willingness to support the apprenticeship training system. This article demonstrates that, on the contrary, German firms did not abandon the training system but instead changed their training strategies after the implementation of the labour market reforms. We analyse the new training strategies that German firms deployed to cope with the increased labour market flexibility engendered by the labour market reforms. Switzerland, where no such reforms occurred, serves as the counterfactual. The results demonstrate that German firms successfully reduced the net costs of training by involving apprentices in more work and reducing non-productive tasks.

Although there is evidence that apprenticeship training can ease the transition of youth into the labour market and thereby alleviate youth unemployment, many policymakers fear that firms will reduce the number of apprenticeship positions during economic crises, thus exacerbating the problem of youth unemployment. Using recent panel data of Swiss cantons and dynamic regression models, we examine the relationship between newly created apprenticeships and the business cycle. The empirical results suggest that economic shocks induce a pro-cyclical, moderate response in the apprenticeship market, both immediately and in subsequent years.

This study presents in-depth empirical analyses of drop-outs from all Swiss universities for the entire student population between 1975 and 2008. The results show that most identifiable factors associated with a greater or lesser probability of dropping out are identical to those found in a recent systematic review (Larsen et al., 2013). The main findings are that: first, since the 1970s, there has been a marked trend towards falling drop-out rates which is largely due to female students who, today, have lower drop-out rates than their male counterparts; secondly, not only are there different drop-out rates for specific subjects of study, but there are also differences in baccalaureate profiles, which indicates that the skills acquired prior to entering university have a great impact on successful study; thirdly, students who change their first subject choice are at great risk of dropping out. No firm conclusions can yet be drawn about the Bologna reform but, based on the subjects which changed to the Bachelor/Master system between 2001 and 2003, no reduction in drop-out rates can be found as a result of the reform.

PurposeThe paper aims to test whether a firm's provision of training depends on the intake quality of trainees. While a firm may just treat each trainee equally, independent of his or her intake quality, firms may alternatively also provide more training to less able individuals or focus on the most able ones. The authors develop a theoretical framework that illustrates under what circumstances a firm chooses a particular training strategy.Design/methodology/approachThe paper uses representative administrative survey data for more than 1,400 Swiss establishments. To test their theoretical predictions about a firm's training strategy, the authors apply multivariate and instrumental variable (IV) regression models. In addition, they use case study evidence from a large Swiss retailer, allowing them to analyze how different instructors in a specific firm react when confronted with apprentices of different intake qualities.FindingsThe authors find that a firm's training strategy depends on a trainee's intake quality and the expected net costs of a particular training occupation. Although firms generally provide less training to less qualified trainees, the authors find that a firm is willing to compensate low‐ability trainees with additional training when training is on average profitable in the short run.Practical implicationsWhen training regulations force firms to follow an investment‐oriented training strategy (net costs in the short run), then low‐ability trainees will not receive additional instruction time and the dropout risk increases.Social implicationsGenerating a regulatory framework that allows firms to achieve a net benefit from work‐based training is crucial for low‐ability trainees to have the opportunity to receive additional training investments that compensate for a lack of competences when training commences.Originality/valueThis paper provides novel and direct empirical evidence on how firms adjust their training provision when faced with heterogeneity in the ability of their trainees.

Although interest in monopsonistic influences on labour market outcomes has revived in recent years, only a few empirical studies provide direct evidence on it. This paper analyses empirically the effect of monopsony power on pay structure, using a direct measure of labour market 'thinness'. We find that having fewer competitors for skilled labour is associated at the level of the establishment with lower pay for both skilled labour and trainees, but not for unskilled labour. These findings have potentially important implications for the economic theory of training, as most recent models assume that skilled pay is set monopsonistically but both unskilled and trainee pay are determined competitively. Our results support those assumptions for skilled pay and unskilled pay, but not for trainee pay.

We study gift exchange in a field experiment where a random subsample of participants in the Swiss Labour Force Survey received vouchers to be used in adult training. Actual voucher redemption can be traced, giving us the unique opportunity to study whether gift exchange in the form of participation in future rounds of the survey depends on the perceived usefulness of the gift. The group of voucher recipients as a whole has significantly higher response rates. There is considerable heterogeneity, however. Our results point to a long-lasting gift exchange relationship only for the subgroup that redeemed their vouchers.

Lifelong learning is often promoted in aging societies, but little is known about its returns or governments' ability to advance it. This paper evaluates the effects of a large-scale randomized field experiment issuing vouchers for adult education in Switzerland. We find no significant average effects of the voucher program on earnings, employment, and subsequent education 1 year after treatment. But effects are heterogeneous: low-educated individuals are most likely to profit from adult education, but least likely to use the voucher. In addition, the public voucher program appears to crowd out firm-financed training. The findings cast doubt on the effectiveness of untargeted voucher programs in promoting labor market outcomes through adult education.

A firm's decision to invest in the general human capital of its workers can be affected by labor market conditions. Firms located close to a large number of competitors might refrain from financing general training because skilled workers may be poached after completion of training. To better incorporate economic realities, we apply a novel definition of regional labor markets based on travel time rather than travel distance or political borders. Our results show that firms provide less training in dense regional labor markets, indicating that (potential) labor poaching affects the training behavior of firms. Moreover, the threat of poaching is relevant only if general training is financed by the employer.

We use a unique data set about the wage distribution that Swiss students expect for themselves ex ante, deriving parametric and non-parametric measures to capture expected wage risk. These wage risk measures are unfettered by heterogeneity which handicapped the use of actual market wage dispersion as risk measure in earlier studies. Students in our sample anticipate that the market provides compensation for risk, as has been established with risk augmented Mincer earnings equations estimated on market data: higher wage risk for educational groups is associated with higher mean wages. With observations on risk as expected by students we find compensation at similar elasticities as observed in market data. The results are robust to different specifications and estimation models.

In this paper we analyze the training behavior of firms in Germany and Switzerland — two countries with a comparable apprenticeship system but strong differences in the regulation of their respective labor markets. We make use of two representative firm-level surveys on the provision of apprenticeship training to analyze differences in the costs and benefits of training and the firm's training decision. Our results suggest that firms are more likely to make a substantial (short-term) net investment in apprenticeship training in the presence of strong employment protection laws.

The pathways of individuals into teaching exhibit several moments of choice that impact crucially on the final composition of the teaching workforce. Though the transition from training into teaching has frequently been studied, the self‐selection into the institutions of teacher education has received little attention until now. Sorting into teacher education plays a major role in the determination of the potential quality of the teaching workforce. The question is, therefore, who is interested in teacher training. The analyses contained in this study are based on a representative sample of 1567 high school students in Switzerland shortly before graduation. The findings indicate that there is systematic self‐selection into teacher training institutions which is principally based on gender, socio‐economic background and high school profile. This sorting is reinforced by the institutional and structural characteristics of the types of higher education institutions and the courses of study they offer. Accor...

When students themselves enjoy large degrees of freedom in determining the duration of their studies, it results in a fairly large degree of interindividual variance in terms of time-todegree. This paper investigates individual time-to-degree in a model where students determine the optimum time-to-degree whilst weighing up the cost against the consumption benefit accruing from an additional semester of studies. According to this model, the cost level and consumption benefit depend, in turn, on the general economic environment during the study period. An empirical investigation using a data set based on Swiss university graduates from 1981 to 2001 shows that changes in the unemployment rate, real interest rate, wage levels, and economic growth have a significant impact on individual time-todegree. These results are consistent with the conclusions derived from the theoretical model.

For the first time it has been made possible to merge a German and a Swiss firm-level data set that include detailed information about costs and benefits of apprenticeship training. Previous analyzes based only on aggregate data showed that the net costs of training apprentices are substantial in Germany, whereas apprenticeship training is on average profitable during the training period for firms in Switzerland, even though the two training systems are rather similar. This paper analyzes the reasons for these differences with matching methods. We simulate the impact of changes in certain parameters such as wages, apprenticeship system-related factors and allocation of tasks to apprentices on the cost-benefit ratio using the counterfactual values of the other country. The results show that most of the difference in the net costs of training between the two countries can be explained by a higher share of productive tasks allocated to apprentices in Switzerland and the differences in relative wages...

Considerable improvements in the measurement of costs and benefits of apprenticeship training from the perspective of training companies have been made in the past few years. They have helped to better understand, why some firms train and others do not. With these micro-data sets we are also able to analyse measures that would help to increase the supply of training posts in an economy. A simulation of the impact of financial incentives on the training propensity of firms is made and shows that such a measure would be highly inefficient from an economic perspective. Further improvements in data are expected and should give valuable guidance in the design of educational, fiscal and labour market policies with respect to apprenticeship training.