Early termination of vocational training: dropout or stopout?

This paper studies the factors that influence the beginning of either a new vocational training in another occupation (stopout) or the stop of vocational training altogether after an early termination (dropout of the vocational system). One influencing factor is the amount of the human capital acquired which is determined by the duration of (early terminated) vocational training. To analyse this for the German case, we use data (Ausbildungspanel Saarland) which contains detailed information about apprenticeship careers and their labour market outcomes for all apprentices between 1999 and 2002 in Saarland (a German federal state). 72 per cent of the premature terminations analysed here are stop outs. The estimations of robust logit-models show that early premature terminations and an above-average apprenticeship wage in the training occupation are more likely to lead to an apprenticeship stopout. Stopouts who terminate their contracts early on in the apprenticeship process are more likely to change their occupation.