Abstract

The public discourse often argues that premature vocational training contract terminations lead to disadvantages in the labor market. However, not every training contract termination leads to dropout from the vocational educational system. For instance, a termination of a training contract can also enable young individuals to increase the match between their abilities and preferences and the training firm and occupation. Our analyses based on the “Ausbildungspanel Saarland” reveal that individuals with a training dissolution who subsequently attained a vocational training certificate have similar wages in their early career as individuals who attained a vocational training certificate without any interruptions. In contrast, vocational training dropouts (i.e., individuals who do not attain any vocational certificate) earn lower wages in their early career compared to degree holders.