Poaching and Firm-Sponsored Training.

Abstract

A series of seminal theoretical papers argues that poaching of employees may hamper company-sponsored general training like apprenticeship training in Germany. Empirically however, the existence, extent and consequences of poaching still remain an open question. We provide a novel empirical strategy to identify poaching and investigate its causes and consequences. We find that only a few apprenticeship training firms in Germany are poaching victims or raiders. Poaching victim firms are more likely to be in a temporary downturn and raiding firms are more likely to increase their workforce. Poaching victims hardly change their training strategy after poaching. Thus, poaching is a transitory event and not a general threat to apprenticeship training. This is an important result for countries that intend to introduce apprenticeship type of training and need to convince firms to participate in their endeavour.