Summary The common estimator for relative adjusted wage differentials based on dummy variables in loglinear regressions is inconsistent in the presence of group-specific heteroskedasticity. The direction and magnitude of the bias are derived. At the same time, a heteroskedasticity-consistent...

The apprenticeship system is the most important source of formal post‐secondary training in Germany. Using German register data – the IAB Employment Sample – it is found that apprentices staying with their training firm after graduation have a longer first‐job durations but not higher...