The Effectiveness of Workplace-based Training in Hungary. Why does apprentice training help?
Although apprenticeship training has been praised for its effectiveness in smoothing the school-to-work transition of non-college bound students in dual education systems, there is a lack of evidence for Central and Eastern Europe and the mechanism behind this effect is also unclear. Using a unique individual-level panel database, which includes an extensive set of controls, the study shows that Hungarian students of the non-college bound vocational training track with workplace-based training, have about 10-15% higher probability of initial employment, compared to similar graduates from the same track, who were trained in school. This effect seems to be stable across industries, and robust to specification checks. Tests using alternative outcomes – such as net earning, or length of employment contract – suggest that this positive effect is due to the screening of apprentices and not to their increased specific skills.