The effectiveness of apprenticeship training: A within-track comparison of workplace-based and school-based vocational training in Hungary

• The study compares apprentices and non-apprentices within track in Hungary.
• Apprentices are as likely to be employed as non-apprentices after graduation.
• This is likely due to the atypical Hungarian dual training system.
• Self-organized apprentices employed more right after graduation due to screening.
• No evidence is found on the skill-enhancing effect of apprenticeship training.

Although apprenticeship training has been praised for its effectiveness in easing the transition of non-college-bound students from school to work, most studies rely on cross-country or cross-track comparisons. This study compares apprenticeship training students with non-apprentices within educational track in a relatively uncoordinated and decentralized institutional setting. Using a rich database and a unique set of observable individual-level characteristics as well as local labor market fixed effects to control for the potential selection bias, the results show that there are no significant differences in employment opportunities between apprentices and non-apprentices within just a year after graduation. This might be due to the failure of the Hungarian firms to enhance the skills of apprentices and thus increase their chances of entering the labor market compared to their school-trained peers. However, some immediate positive effect of apprenticeship training within sub-populations is apparent, which are likely to be the result of screening.