PhD defence Carolin Linckh

Keywords: Labor Demand, Recruiting, Informal Training, Turnover

"Firms’ Skill Demand: The Role of Minimum Wages, Tightness and Informal Training"

This thesis explores how firms respond to their need for skilled workers under changing labor market conditions and institutional rules. It studies three key stages of employment: training young workers, recruiting skilled employees, and retaining new hires. The research focuses on the effects of apprenticeship minimum wages, the regional availability of workers, and firms’ investments in informal training during onboarding.

The findings show that firms adjust their strategies as labor market conditions change. Higher apprenticeship wages lead to only small overall employment effects, but they reduce employment opportunities for apprentices with lower educational backgrounds. When suitable workers become scarce, firms increase their recruitment efforts and invest more in onboarding processes. In addition, firms that provide more informal training during the first months of employment experience lower early employee turnover.

Overall, the thesis highlights how firms actively adapt training, hiring, and retention practices to meet skill demands in evolving labor markets.

Click here for the live stream.