Article Gold Open Access 2021

Culture, norms, and the provision of training by employers: Evidence from the Swiss language border

Labour Economics
Journal · Vol. 73 · Art. 102057
Abstract

Apprenticeships are the core track of the Swiss educational system at the upper-secondary level, made possible by the fact that many Swiss firms voluntarily provide appropriate training positions. However, firms’ training provision differs substantively between the language-cultural regions within Switzerland. This feature of the Swiss apprenticeship system is hard to explain using conventional explanations of firm-provided training. In this paper, we argue that there are cultural differences in the norms favoring private over state provision of goods, which influence firms’ provision of training positions. Exploiting national referenda, we first show that, within a narrow band around the language border, voters in German speaking municipalities value private over public provision of certain goods more than their French speaking counterparts. We then document a higher share of training firms on the German speaking side of the language border of 4.4 percentage points, or roughly 13%. This estimate is robust across different sets of controls, alternative specifications, and various subsamples. Our results suggest an interplay between regional norms and local firms’ training behavior. © 2021

Keywords

Author Keywords

human capital vocational education and training Culture norms firm behavior geographic quasi-experiment

Index Keywords

Author Affiliations
University of Bern, Bern, BE, Switzerland
Swiss Federal University for Vocational Education and Training, Lausanne, Switzerland
Funding & Acknowledgements
Staatssekretariat für Bildung, Forschung und Innovation, SBFI
Grant: 1315000817
Funding text 1: We thank Patrick Emmenegger, Michael Gerfin, Samuel Mühlemann, two anonymous referees as well as seminar participants in Bern and Zurich for helpful comments and suggestions. Financial support by the State Secretariat for Education, Research and Innovation (SERI) is gratefully acknowledged (contract number 1315000817).; Funding text 2: We thank Patrick Emmenegger, Michael Gerfin, Samuel Mühlemann, two anonymous referees as well as seminar participants in Bern and Zurich for helpful comments and suggestions. Financial support by the State Secretariat for Education, Research and Innovation (SERI) is gratefully acknowledged (contract number 1315000817).
Staatssekretariat für Bildung, Forschung und Innovation, SBFI
Funding text 1: We thank Patrick Emmenegger, Michael Gerfin, Samuel Mühlemann, two anonymous referees as well as seminar participants in Bern and Zurich for helpful comments and suggestions. Financial support by the State Secretariat for Education, Research and Innovation (SERI) is gratefully acknowledged (contract number 1315000817).; Funding text 2: We thank Patrick Emmenegger, Michael Gerfin, Samuel Mühlemann, two anonymous referees as well as seminar participants in Bern and Zurich for helpful comments and suggestions. Financial support by the State Secretariat for Education, Research and Innovation (SERI) is gratefully acknowledged (contract number 1315000817).
References 10 References
1 Abadie, Alberto, Econometric Methods for Program Evaluation, Annual Review of Economics, 10, pp. 465-503, (2018)
2 Acemoglu, Daron, Why do firms train? theory and evidence, Quarterly Journal of Economics, 113, 1, pp. 78-119, (1998)
3 Acemoglu, Daron, Beyond becker: Training in imperfect labour markets, Economic Journal, 109, 453, pp. 112-142, (1999)
4 Aepli, Manuel, Open labor markets and Firms’ substitution between training apprentices and hiring workers., Labour Economics, 70, (2021)
5 Alesina, Alberto F., Culture and institutions, Journal of Economic Literature, 53, 4, pp. 898-944, (2015)
6 Mostly Harmless Econometrics, (2009)
7 Bern Bundesamt Fur Raumentwicklung are, (2010)
8 Athey, Susan, The state of applied econometrics: Causality and policy evaluation, Journal of Economic Perspectives, 31, 2, pp. 3-32, (2017)
9 Barreca, Alan I., Heaping-induced bias in regression-discontinuity designs, Economic Inquiry, 54, 1, pp. 268-293, (2016)
10 Bassanini, Andrea, Not in my community: Social pressure and the geography of dismissals, Journal of Labor Economics, 35, 2, pp. 429-483, (2017)
Quick Actions
Full Text via DOI
Citation Metrics
11
Times Cited (Scopus)

References 10
Document Identifiers