Why do business service firms employ fewer apprentices?: A comparison between Germany and The Netherlands

This paper analyses why in Germany and The Netherlands the share of apprentices in the business service sector is lower than in other economic sectors. A theoretical introduction surveys the potential reasons that could be responsible for this. The subsequent empirical analysis shows that the level of skill apprentices gain is the main explanation for the relatively low supply of apprenticeships in German business service enterprises. In The Netherlands, the option to hire skilled employees from full‐time schools instead of training apprentices seems to be crucial. For these reasons, this paper proposes to offer obligatory extra formal training in areas such as IT skills and foreign languages for the apprentices in business service firms in Germany in order to increase the attractiveness of the dual apprenticeship system for prospective apprentices as well as business service firms.

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