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Unfilled Training Positions in Germany – Regional and Establishment-Specific Determinants

  • Sandra Dummert , Ute Leber EMAIL logo und Barbara Schwengler
Veröffentlicht/Copyright: 20. März 2019

Abstract

The current situation in the German apprenticeship market is characterized by two contradictory developments. On the one hand, establishments are experiencing increasing problems filling the training positions they offer, and the number of vacant training positions is climbing. On the other hand, the transition into training is still difficult for many young people, and the number of unsuccessful vocational training applicants is rising. Hence, matching supply with demand is becoming increasingly difficult in the German job market for training positions. Using the Linked Employer-Employee dataset (LIAB) from the Institute for Employment Research (IAB), our paper provides a closer examination of the phenomenon of unfilled training positions. It presents an overview of the evolution of vacant training positions in eastern and western Germany and attempts to explain the number of vacancies by investigating the factors responsible for the establishments’ inability to fill their training positions. We assume that training position vacancies are due not only to internal company reasons such as firm size or the wage offer for apprentices but also to external conditions such as general regional factors. Therefore, our analysis also considers the situation on the demand side of the labor market within a region. The results of our multilevel mixed-effects estimations show that in addition to characteristics on the enterprise level, regional determinants also affect the share of vacant apprenticeships. With respect to establishment-related factors, mainly characteristics that describe the attractiveness of the firm prove to be important. With regard to regional-specific factors, we find that the availability of school leavers in a region in addition to the level of regional-sectoral competition impacts the recruiting success of establishments. Our analysis also shows that there are remarkable differences between eastern and western Germany concerning both the quantitative importance of unfilled training positions and the factors affecting them.

JEL Classification: J24; I29; M53; R23

Acknowledgments

The authors would like to thank the reviewers and the editor for their helpful and constructive comments.

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Appendix

A
Table 6:

Description of dependent and independent variables.

Share of unfilled training placesNumber of unfilled training positions divided by the number of offered training positions
Regional variables
Unemployment rate of young people (15–24 years)Share of unemployed young people above 15 and under 25 years on the labor force of young people above 15 and under 25 years within a regional labor market
Density of school leavers (log.)Number of school leavers within a regional labor market divided by its area (km2)
Sector concentration indexRegional-sectoral concentration index based on 3-digit sector classification and 141 labor market regions:

Σ(i=1)N(Li/ΣLi)2 with Li=number of apprentices in establishment i

Low value=high sectoral competition, high value=low sectoral competition (Gerner/Stegmaier 2009, Bellmann et al. 2011)
Share of graduates with a basic secondary school certificateNumber of basic secondary level graduates divided by the overall number of school leavers within a regional labor market
Share of graduates with an intermediate secondary school certificateNumber of intermediate secondary level graduates divided by the overall number of school leavers within a regional labor market
Establishment-specific characteristics
Works councilEstablishment has a works or staff council elected in accordance with the Works Council Constitution Act or the Staff Representation Act; Dummy: 1=yes
Collective agreementEstablishment is bound by an industry-wide wage agreement or a company agreement concluded by the establishment and the trade unions; Dummy: 1=yes
Retention rate of apprenticesShare of training graduates who were taken over by their training firm after successfully completing their vocational training related to all graduates who have successfully completed their training
Wage of apprentices (firm fixed-effects)Establishment fixed effect based on a Mincer wage equation on the individual level
Establishment size4 Dummies (1–9; 10–49; 50–249 and 250 and more employees)
Western GermanyEstablishment is located in western Germany; Dummy: 1=yes
Share of employees in occupational segmentsShare of employees in 14 occupational segments in the establishment (Matthes et al. 2015)
Share of qualified employeesShare of apprentices or employees with an university degree or vocational qualification on all employees
Share of part-time employeesShare of part-time workers on all employees
Share of fixed-term employeesShare of fixed-term employees on all employees
Share of apprenticeshipsShare of apprentices on all employees
Vacancies for skilled jobsEstablishment has vacancies for skilled jobs; Dummy: 1=yes
Kind of establishmentDummy: 0=Independent company; 1=head office of company, place of business/office branch of a larger company or middle-level authority of a multilevel company
Modern technical stateOverall technical state of the plant and machinery, furniture and office equipment of the establishment compared to other establishments in the same industry; Dummy: 1=very modern/modern
Year7 Dummies (2008–2014)
Table 7:

Descriptive statistics of the dependent and the independent variables (Germany).

Germany

(N=20,761)
VariablesMeanStd. DevMinMax
Share of unfilled training positions0.1420.29801
Unemployment rate of young people (15–24 years)0.0730.0310.0150.181
Density of school leavers3.1533.0170.22025.246
Sector concentration index0.1000.23901
Share of graduates with:
– a basic secondary school certificate0.1760.0550.0600.345
– an intermediate secondary school certificate0.4130.0630.2290.575
– an upper secondary school leaving certificate0.3400.0730.1560.574
Works council (d)0.5480.49801
Collective agreement (d)0.6200.48501
Retention rate of apprentices0.5620.45101
Wage of apprentices (firm fixed-effects)−0.1020.316−1.4230.681
Establishment size
1–9 employees (ref.)0.0440.20601
10–49 employees0.2610.43901
50–249 employees0.3990.49001
250 or more employees0.2950.45601
Western Germany (d)0.6440.47901
Occupational segments
Occupations in agriculture, forestry and horticulture0.0270.13101
Manufacturing occupations (ref.)0.1360.23901
Occupations concerned with production0.1420.21101
Occupations in building and interior construction0.0700.18601
Occupations in the food industry, in gastronomy and in tourism0.0450.15201
Medical and non-medical health care occupations0.0670.20501
Service occupations in social sector and cultural work0.0540.15001
Occupations in commerce and trade0.0830.19301
Occupations in business management and organisation0.1430.17201
Business related service occupations0.0880.21101
Service occupations in the IT-sector and the natural sciences0.0290.09701
Safety and security occupations0.0110.05400.985
Occupations in traffic and logistics0.0780.16101
Occupations in cleaning services0.0270.08201
Share of qualified employees0.7460.21101
Share of part-time employees0.1950.21601
Share of fixed-term employees0.0670.11101
Share of apprenticeships0.0800.09201
Vacancies for skilled jobs (d)0.1650.37101
Kind of establishment (d)0.3640.48101
Modern technical state (d)0.7270.44601
  1. Source: LIAB QM, years 2008–2014, analysis sample, d=dummy.

Table 8:

Descriptive statistics of the dependent and the independent variables (Eastern and Western Germany).

Eastern Germany

(N=7,392)
Western Germany

(N=13,369)
VariablesMeanStd. DevMinMaxMeanStd. DevMinMax
Share of unfilled training positions0.2410.367010.0880.23601
Unemployment rate of young people (15–24 years)0.1020.0250.0390.1810.0570.0210.0150.137
Density of school leavers1.6341.8930.2207.9943.9933.1900.32425.246
Sector concentration index0.1250.264010.0870.22301
Share of graduates with:
– a basic secondary school certificate0.1310.0340.0600.2560.2020.0480.0930.345
– an intermediate secondary school certificate0.4160.0760.2290.5480.4120.0530.2690.575
– an upper secondary school leaving certificate0.3580.0720.2070.5740.3300.0710.1560.517
Works council (d)0.4780.500010.5860.49201
Collective agreement (d)0.4800.500010.6970.45901
Retention rate of apprentices0.5190.464010.5870.44201
Wage of apprentices (firm fixed-effects)−0.2880.337−1.4220.6230.0020.250−1.2640.681
Establishment size
1–9 employees (ref.)0.0390.194010.0470.21201
10–49 employees0.3070.461010.2360.42501
50–249 employees0.4520.498010.3700.48301
250 or more employees0.2030.402010.3460.47601
Western Germany (d)
Occupational segments
Occupations in agriculture, forestry and horticulture0.0320.140010.0240.12701
Manufacturing occupations (ref.)0.1840.276010.1100.21201
Occupations concerned with production0.1490.211010.1380.21001
Occupations in building and interior construction0.0710.185010.0700.18701
Occupations in the food industry, in gastronomy and in tourism0.0470.155010.0450.15001
Medical and non-medical health care occupations0.0630.206010.0690.20401
Service occupations in social sector and cultural work0.0460.13800.9640.0580.15601
Occupations in commerce and trade0.0750.180010.0870.20001
Occupations in business management and organisation0.1350.174010.1480.17001
Business related service occupations0.0690.172010.0980.22801
Service occupations in the IT-sector and the natural sciences0.0290.102010.0290.09401
Safety and security occupations0.0100.05400.9760.0110.05400.985
Occupations in traffic and logistics0.0710.151010.0810.16601
Occupations in cleaning services0.0200.086010.0310.07901
Share of qualified employees0.8070.187010.7130.21501
Share of part-time employees0.1570.222010.2160.20901
Share of fixed-term employees0.0670.111010.0670.11101
Share of apprenticeships0.0800.102010.0800.08600.993
Vacancies for skilled jobs (d)0.1680.374010.1630.37001
Kind of establishment (d)0.2860.452010.4080.49101
Modern technical state (d)0.7170.450010.7320.44301
  1. Source: LIAB QM, years 2008–2014, analysis sample, d=dummy.

Table 9:

Mixed effects logistic random intercept model.

AMEStd. Err.
Unemployment rate of young people (15–24 years)−1.453***0.519
Density of school leavers (log.)−0.049**0.021
Sector concentration index−0.151***0.035
Share of grad. with a basic secondary school leaving certificate0.1990.193
Share of grad. with an intermediate secondary school leaving certificate−0.0290.133
Works council (d)−0.069***0.021
Collective bargaining agreement (d)−0.111***0.016
Retention rate of apprentices−0.068***0.012
Wage of apprentices (firm fixed-effects)−0.236***0.043
Establishment size (Ref.: 1–9 employees)
10–49 employees0.0350.045
50–249 employees−0.0650.046
250 or more employees−0.143***0.048
Western Germany (d)−0.420***0.054
Occupational segments (Ref.: Manufacturing occupations)
Occupations in agriculture, forestry and horticulture0.0400.078
Occupations concerned with production−0.188***0.053
Occupations in building and interior construction0.187***0.058
Occupations in the food industry, gastronomy and tourism0.362***0.064
Medical and non-medical health care occupations−0.219***0.056
Service occupations in the social sector and cultural work−0.214***0.060
Occupations in commerce and trade0.0690.058
Occupations in business management and organization−0.122**0.055
Business-related service occupations−0.300***0.057
Service occupations in the IT sector and the natural sciences−0.249**0.099
Safety and security occupations0.358***0.097
Occupations in traffic and logistics0.0240.064
Occupations in cleaning services0.328***0.113
Share of qualified employees−0.0250.040
Share of part-time employees−0.0720.044
Share of fixed-term employees−0.0440.055
Share of apprenticeships−0.1220.086
Vacancies for skilled jobs (d)0.027**0.012
Multi-establishment company (d)−0.062***0.014
Modern technical state (d)−0.036***0.012
Year dummies (Ref.: 2014)
2008−0.209***0.024
2009−0.115***0.022
2010−0.034*0.018
2011−0.053***0.016
2012−0.041***0.015
20130.0190.014
Random-Effects Parameters (var)
Level 3: Regional labor market Ϛk(3)0.105***0.032
Level 2: Establishment Ϛjk(2)2.923***0.121
LR test vs. logistic regression: χ2(2)12,224.82***
Gauss-Hermite quadrature (integration points)7
Number of groups (establishments)5,525
Number of groups (regional labor markets)140
Number of observations20,761
  1. ***: p<0.01, **: p<0.05, *: p<0.1; d=dummy; Basis: Establishments that are legally authorized to train young staff and have offered training positions. Source: LIAB QM, years 2008–2014.

Table 10:

Mixed effects logistic random intercept model (Eastern and western Germany).

Eastern GermanyWestern Germany
AMEStd. Err.AMEStd. Err.
Unemployment rate of young people (15–24 years)−0.3041.657−1.028*0.578
Density of school leavers (log.)−0.135**0.062−0.0160.017
Sector concentration index0.0010.085−0.262***0.047
Share of grad. with a basic secondary school leaving certificate−0.2710.673−0.1390.143
Share of grad. with an intermediate secondary school leaving certificate0.2680.398−0.546***0.122
Works council (d)−0.0840.059−0.052***0.015
Collective bargaining agreement (d)−0.245***0.046−0.048***0.012
Retention rate of apprentices−0.080**0.034−0.046***0.010
Wage of apprentices (firm fixed-effects)−0.584***0.111−0.091***0.034
Establishment size (Ref.: 1–9 employees)
10–49 employees−0.0180.1310.0120.032
50–249 employees−0.246*0.134−0.0290.034
250 or more employees−0.290**0.141−0.101***0.036
Occupational segments (Ref.: Manufacturing occupations)
Occupations in agriculture, forestry and horticulture0.0060.2070.0410.061
Occupations concerned with production−0.320**0.136−0.114**0.045
Occupations in building and interior construction0.1960.1580.122***0.045
Occupations in the food industry, gastronomy and tourism0.517***0.1730.209***0.051
Medical and non-medical health care occupations−0.931***0.173−0.0660.042
Service occupations in the social sector and cultural work−0.452**0.182−0.143***0.047
Occupations in commerce and trade−0.0910.1660.0610.044
Occupations in business management and organization−0.420**0.166−0.0600.042
Business-related service occupations−1.152***0.186−0.090**0.042
Service occupations in the IT sector and the natural sciences−0.2070.268−0.164**0.076
Safety and security occupations0.780***0.2280.0710.113
Occupations in traffic and logistics0.2220.181−0.0540.048
Occupations in cleaning services0.816**0.3190.0630.084
Share of qualified employees−0.1990.1270.0130.027
Share of part-time employees−0.260**0.129−0.0140.032
Share of fixed-term employees−0.306*0.1630.0480.040
Share of apprenticeships−0.0510.236−0.278***0.075
Vacancies for skilled jobs (d)−0.092***0.0350.045***0.009
Multi-establishment company (d)−0.0620.042−0.044***0.011
Modern technical state (d)−0.0340.034−0.028***0.009
Year dummies (Ref.: 2014)
2008−0.645***0.094−0.066***0.016
2009−0.426***0.086−0.033**0.014
2010−0.221***0.060−0.0010.012
2011−0.0520.049−0.073***0.014
20120.0050.044−0.065***0.012
2013−0.081*0.0420.021**0.010
Random-Effects Parameters (var)
Level 3: Regional labor market Ϛk(3)0.086*0.0470.135***0.048
Level 2: Establishment Ϛjk(2)2.374***0.1533.316***0.183
LR test vs. logistic regression: χ2(2)4230.39***7251.79***
Gauss-Hermite quadrature (integration points)77
Number of groups (establishments)1,8833,642
Number of groups (regional labor markets)38107
Number of observations7,39213,369
  1. ***: p<0.01, **: p<0.05, *: p<0.1; d=dummy; Basis: Establishments that are legally authorized to train young staff and have offered training positions. Source: LIAB QM, years 2008–2014.

Table 11:

Between and within effects in Germany (average marginal effects).

within effectbetween effect
Unemployment rate of young people (15–24)−1.054 (0.676)−2.844*** (0.670)
Density of school leavers (log.)−0.180*** (0.059)−0.032 (0.021)
Sector concentration index−0.115*** (0.032)0.261 (0.201)
Share of grad. with a basic secondary school leaving certificate0.063 (0.231)−0.761** (0.374)
Share of grad. with an intermediate secondary school leaving certificate−0.134 (0.166)−0.588** (0.286)
Works council (d)0.060** (0.029)−0.166*** (0.026)
Collective bargaining agreement (d)−0.119*** (0.019)−0.028 (0.023)
Retention rate of apprentices−0.042*** (0.012)−0.216*** (0.033)
Wage of apprentices (firm fixed effects)−0.271*** (0.040)
Establishment size (Ref.: 1–9 employees)
10–49 employees0.001 (0.041)
50–249 employees−0.060 (0.044)
250 or more employees−0.143*** (0.047)
Western Germany (d)−0.378*** (0.051)
Occupational segments (Ref.: Manufacturing occupations)
Occupations in agriculture, forestry and horticulture0.005 (0.070)
Occupations concerned with production−0.174*** (0.049)
Occupations in building and interior construction0.140*** (0.053)
Occupations in the food industry, gastronomy and tourism0.257*** (0.059)
Medical and non-medical health care occupations−0.285*** (0.055)
Service occupations in the social sector and cultural work−0.196*** (0.059)
Occupations in commerce and trade0.059 (0.055)
Occupations in business management and organization−0.064 (0.052)
Business-related service occupations−0.201*** (0.053)
Service occupations in the IT sector and the natural sciences−0.249*** (0.090)
Safety and security occupations0.190** (0.089)
Occupations in traffic and logistics−0.024 (0.058)
Occupations in cleaning services0.161 (0.105)
Share of qualified employees0.131*** (0.049)−0.184*** (0.054)
Share of part-time employees−0.137** (0.054)−0.076 (0.059)
Share of fixed-term employees−0.091 (0.060)0.049 (0.091)
Share of apprenticeships0.759*** (0.118)−1.000*** (0.108)
Vacancies for skilled jobs (d)−0.006 (0.011)0.299*** (0.035)
Multi-establishment company (d)−0.090*** (0.017)−0.003 (0.021)
Modern technical state (d)−0.023* (0.013)−0.077*** (0.024)
Year dummies (Ref.: 2014)
2008−0.194*** (0.026)
2009−0.115*** (0.024)
2010−0.045** (0.018)
2011−0.061*** (0.016)
2012−0.047*** (0.014)
20130.015 (0.013)
Random-Effects Parameters (var)
Level 3: Regional labor market Ϛjk(2)0.073*** (0.027)
Level 2: Establishment Ϛjk(2)2.701*** (0.111)
LR test vs. logistic regression: χ2(2)11,701.66***
Gauss-Hermite quadrature (integration points)7
Number of groups (establishments)5,525
Number of groups (regional labor markets)140
Number of observations20,761
  1. Standard errors in parentheses; ***: p<0.01, **: p<0.05, *: p<0.1; d=dummy; Basis: Establishments that are legally authorized to train young staff and have offered training positions. Source: LIAB QM, years 2008–2014.

Table 12:

Between and within effects in eastern and western Germany (average marginal effects).

Eastern GermanyWestern Germany
within effectbetween effectwithin effectbetween effect
Unemployment rate of young people (15–24 years)4.090** (1.688)−6.457*** (1.439)0.928 (0.964)−1.292** (0.549)
Density of school leavers (log.)−0.469*** (0.180)−0.028 (0.051)0.384*** (0.083)−0.021 (0.019)
Sector concentration index0.048 (0.068)1.220** (0.517)−0.188*** (0.034)0.044 (0.166)
Share of graduates with a basic secondary school leaving certificate−0.775 (0.635)−1.738 (1.093)0.477** (0.219)−0.338 (0.292)
Share of graduates with an intermediate secondary school leaving certificate−0.330 (0.490)−0.718 (0.549)0.019 (0.177)−0.347 (0.297)
Works council (d)0.176** (0.073)−0.274*** (0.062)−0.020 (0.024)−0.081*** (0.021)
Collective bargaining agreement (d)−0.198*** (0.047)−0.058 (0.060)−0.080*** (0.017)−0.008 (0.019)
Retention rate of apprentices−0.025 (0.029)−0.449*** (0.079)−0.036*** (0.010)−0.092*** (0.027)
Wage of apprentices (firm fixed-effects)−0.589*** (0.090)−0.131*** (0.037)
Establishment size (Ref.: 1–9 employees)
10–49 employees−0.051 (0.105)0.002 (0.034)
50–249 employees−0.123 (0.110)−0.045 (0.037)
250 or more employees−0.165 (0.118)−0.133*** (0.041)
Occupational segments (Ref.: Manufacturing occupations)
Occupations in agriculture, forestry and horticulture0.012 (0.161)0.021 (0.062)
Occupations concerned with production−0.266** (0.107)−0.111** (0.047)
Occupations in building and interior construction0.065 (0.126)0.129*** (0.047)
Occupations in the food industry, gastronomy and tourism0.384*** (0.136)0.153*** (0.052)
Medical and non-medical health care occupations−0.906*** (0.144)−0.105** (0.046)
Service occupations in the social sector and cultural work−0.192 (0.155)−0.167*** (0.051)
Occupations in commerce and trade−0.038 (0.134)0.058 (0.048)
Occupations in business management and organization−0.176 (0.133)−0.049 (0.045)
Business-related service occupations−0.747*** (0.143)−0.052 (0.044)
Service occupations in the IT sector and the natural sciences−0.141 (0.210)−0.181** (0.079)
Safety and security occupations0.410** (0.184)0.044 (0.114)
Occupations in traffic and logistics0.118 (0.142)−0.065 (0.050)
Occupations in cleaning services0.352 (0.257)0.007 (0.088)
Share of qualified employees0.057 (0.130)−0.395** (0.157)0.136*** (0.039)−0.115*** (0.042)
Share of part-time employees−0.330** (0.142)−0.217 (0.146)−0.064 (0.044)0.007 (0.050)
Share of fixed-term employees−0.250 (0.156)−0.044 (0.232)0.002 (0.049)0.072 (0.074)
Share of apprenticeships1.708*** (0.275)−1.930*** (0.241)0.208* (0.117)−0.593*** (0.104)
Vacancies for skilled jobs (d)−0.123*** (0.030)0.346*** (0.080)0.024*** (0.009)0.228*** (0.032)
Multi-establishment company (d)−0.100** (0.041)0.030 (0.056)−0.082*** (0.014)0.002 (0.017)
Modern technical state (d)−0.004 (0.030)−0.142** (0.061)−0.021** (0.011)−0.040** (0.020)
Year dummies (Ref.: 2014)
2008−0.680*** (0.090)−0.131*** (0.022)
2009−0.539*** (0.085)−0.095*** (0.022)
2010−0.342*** (0.062)−0.035** (0.016)
2011−0.173*** (0.055)−0.080*** (0.014)
2012−0.089** (0.042)−0.064*** (0.012)
2013−0.128*** (0.036)0.006 (0.010)
Random-Effects Parameters (var)
Level 3: Regional labor market Ϛk(3)0.024 (0.021)0.087** (0.040)
Level 2: Establishment Ϛjk(2)2.097*** (0.134)3.179*** (0.175)
LR test vs. logistic regression: χ2(2)3815.83***7011.48***
Gauss-Hermite quadrature (integration points)77
Number of groups (establishments)1,8833,642
Number of groups (regional labor markets)38107
Number of observations7,39213,369
  1. Standard errors in parentheses; ***: p<0.01, **: p<0.05, *: p<0.1; d=dummy; Basis: Establishments that are legally authorized to train young staff and have offered training positions. Source: LIAB QM, years 2008–2014.

Received: 2018-02-05
Revised: 2018-08-13
Accepted: 2018-11-17
Published Online: 2019-03-20
Published in Print: 2019-07-26

© 2019 Oldenbourg Wissenschaftsverlag GmbH, Published by De Gruyter Oldenbourg, Berlin/Boston

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