with respect to the ability of their employees when training is certified by credible external institutions. We apply an … institutions at that the end of apprenticeship training can be signalled to outside employers. Apprenticeship graduates however … cannot signal their work-related ability – measured by a small voluntary bonus paid by the training employer – to the outside …

The possibility of adverse selection by training firms is common theoretical argument for company-sponsored investments … in general skills. The paper derives a public and a private signal after apprenticeship training and shows that training …