Political economy scholars have long studied the (pre-)conditions conducive to the collective provision of private goods, such as in-firm training. Previous research has established the importance of economic considerations to enter training and underscored the relative stability of firms’ continued training provision once entered as training providers. In times when employers offer fewer training opportunities while experiencing hiring difficulties, the often-overlooked factors determining the continuation of their commitment to providing training become highly relevant. With novel survey data from over 1’700 training firms in Switzerland, we investigate the factors associated with firms’ exit or non-exit considerations. We show that whereas exit considerations strongly correlate with difficulties hiring apprentices and selective hiring approaches, non-exit considerations are associated with firms’ intention to retain apprentices upon graduation. The results are robust when controlling for other factors, such as sector, region, and firm size. Our paper contributes to the collective skill formation literature by showing how firms navigate their roles as training providers, revealing the conditions under which firms maintain or reconsider their commitment to dual vocational education and training. © 2025 The Vocational Aspect of Education Ltd.
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