IS THE GERMAN APPRENTICESHIP SYSTEM A PANACEA FOR THE US LABOR-MARKET

This paper explores the structure of incentives undergirding the Germa n system of apprenticeship training. We first describe characteristics of the German labor market which may lead firms to accept part of the cost of general training, even in the face of worker turnover. We the n compare labor market outcomes for apprentices in Germany and high sc hool graduates in the United States. Apprentices in Germany occupy a s imilar position within the German wage structure as held by high schoo l graduates in the United States labor market. Finally, we provide evi dence that in both countries - the problem of forming labor market bon ds is particularly acute for minority youth.