Germany is widely known for its high-quality vocational education and training (VET) system. The two key features of that system are (a) firm-based training programs accompanied by a schoolbased component (of one to two days per week), in which apprentices acquire upper secondary general...

Advocates of apprenticeship programs often argue as if it is simply a matter of historical accident which has hindered such investment by U.S. firms. This paper explores the structure of incentives undergirding the German system of apprenticeship training. First, we describe three...