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Table 1 Description of the model variables

From: Apprenticeship non-completion in Germany: a money matter?

Wage variables

\(ln\text { }W^{(m)}\)

Natural logarithm of the mean daily wages of full-time workers aged 15 to 64 with a dual VET certificate distinguished by the two-digit level occupations of the KldB 2010, sex, industry, establishment size category, location in East or West Germany (region), and year

\(W/W^{(l)}\)

Daily apprenticeship wage relative to mean daily wage of low skilled worker aged 18 to 30 in the same two-digit level occupations of the KldB 2010 and region

Individual-level controls

Time

Dummy variables, 1 if tenure of apprenticeship is within the intervals (0–60], (60–121], (121,212], (212–425], (425,547] days

Female

Dummy variable, 1 if female

High school diploma

Distinguishes between (1) none, (2) lowest track (Hauptschule), (3) intermediate track (Realschule), and (4) academic track (Gymnasium)

Start. age

Age at the beginning of the apprenticeship

Start. age sqr.

Squared age at the beginning of the apprenticeship

Start. year

Year of apprenticeship start

Foreign

Dummy variable, 1 if foreign citizenship

Establishment-level controls

Est. age

Establishment age in years

Est. size

Distinguishes between 1 to 49, 49 to 249, and 250 and above employees

Industry

Distinguishes 10 broad industrial sectors

East Germany

Dummy variable, 1 if establishment location is in East Germany

Labor market controls

SDR

Supply to demand ratio as approximation for apprenticeship market tightness, captures the number of apprenticeship positions supplied by training firms in relation to the number of apprenticeship seekers in the training occupation. Data source: Survey of new apprenticeship contracts with survey date September 30 by the Federal Institute for Vocational Education and Training\(^{a}\) (BIBB\(^{b}\))

MES

Share of marginally employed individuals at the specific establishment in observation; approximation of career chances in establishment

\(u^{(l)}/u^{(m)}\)

Mean unemployment days per year for (l) unskilled relative to (m) skilled workers by sex, occupation, region, and year

\(u^{(h)}/u^{(m)}\)

Mean unemployment days per year for (h) high skilled relative to (m) skilled workers by sex, occupation, region, and year

  1. \(^{a}\) In German: BIBB-Erhebung Neu abgeschlossene Ausbildungsverträge zum 30.09.
  2. \(^{b}\) In German: Bundesinstitut für Berufsbildung