Intergenerational effects of further vocational training in Germany

Abstract

This article analyses the influence of unemployed parents’ further vocational training on their children’s future apprenticeship and employment opportunities. We focus on households receiving means-tested benefits in Germany and investigate whether parents’ further vocational training helps avoid an intergenerational transmission of unemployment. Parents’ further vocational training can affect children’s future apprenticeship and employment opportunities directly, for instance by raising the value attributed to education and training within the family. Indirect effects via parents’ improved employment opportunities are possible as well. The sample consists of adolescents who were 14–17 years old when their parents participated in a further vocational training programme. We evaluate apprenticeship and employment outcomes for the young adults at ages 17–23 using entropy balancing methods on the basis of rich large-scale register data. Our findings indicate significantly positive effects of parents’ further vocational training on children’s apprenticeship enrolment but non-significant or negative effects on children’s regular employment at young ages. Moreover, mediation analysis gives evidence that these effects are partly mediated via an increase in parents’ own employment opportunities. Overall, our analyses indicate that parents’ further vocational training improves the qualifications of the next generation as well.