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Hungarian legislation provides firms with financial incentives to train apprentices from vocational training schools. In line with these incentives, it is observed that firms increasingly train apprentices over the period 2003-2011, in particular, in the sectors manufacturing, construction, wholesale and retail and hotels and restaurants. However, at the same time, it is observed that firms decreasingly retain the trained apprentices in these four sectors. This finding leads to the hypothesis that apprentices are not profitable in the long run. The formulated hypothesis is known in the previous literature as the 'substitution strategy'. This recruiting strategy is particularly observed among firms that replace their low-skilled labour with apprentices in order to reduce the cost of wages. For these firms it is not beneficial to hire an apprentice after accomplishing his training, because then he becomes a low-skilled worker paid at higher wages. This paper investigates the effect of the share of days worked by apprentices on productivity and gross profits of Hungarian firms by using a unique matched employer-employee dataset. Different approaches that allow us to estimate the effect are discussed among which fixed effects first-difference models and system GMM. The results indicate that apprentices decrease productivity and gross profits of Hungarian firms. These negative effects on firm performance were more prominent and robust before (2003-2007) than after the financial crisis (2008-2011).

We propose a multi-level explanatory model aimed at explaining the variability behind participation in adult learning. Our model focuses on the employed adults, narrowing down to vulnerable sub-groups of employed: low-skilled; young and low-skilled, and immigrants. Adult learning participation is explained identifying determinants at the level of the individual, household, job, employer as well as the system-level. The model is estimated using the European Union Labour Force Survey microdata for 28 European countries. Comparing the results across the vulnerable groups and types of determinants yields interesting insight in understanding the variability in adult learning participation across Europe.

We investigate the importance of contextual variables in explaining the differences in the correlation of education from parents to children in 48 developing countries. The contextual characteristics are internationally comparable macro-economic and institutional indicators. We use measures on GDP and industrial development, public spending, the education system, infrastructure, health outcomes, political stability and accountability. Our results show that contextual characteristics account for 39% of the explained cross-country variation in the education correlation across generations. The quality of the education system is the most important explanation of the variation of the intergenerational education correlation in the developing countries.