TY - RPRT AU - Neuber-Pohl, Caroline AU - Pregaldini, Damiano AU - Backes-Gellner, Uschi AU - Dummert, Sandra AU - Pfeifer, Harald TI - How Negative Labor Supply Shocks Affect Training in Firms: Lessons from Opening the Swiss-German Border PY - 2023/Dec/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 16652 UR - https://www.iza.org/publications/dp16652 AB - By exploiting a labor market reform causing an outflow of German workers to Switzerland, we examine the effect of negative labor supply shocks on training in firms using the market for apprenticeships as an example. Analysis of administrative data reveals that the reform led to more apprentices in German firms despite a decrease in apprentice wages. This can be explained by a standard two-factor production model where firms substitute outflowing skilled workers with more apprentices; setting lower wages is possible because of a rising supply of apprentices owing to substantially improved employment prospects after border openings. KW - negative labor supply shock KW - training effects after worker outflow KW - wage effects KW - training incentives KW - apprenticeship training supply and demand ER -