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The brief examines the earnings growth of American Apprenticeship Initiative (AAI) apprentices compared to the earnings growth for comparable workers during the same period. Researchers limited the sample to apprentices who started their program by 2018 and had a valid Social Security Number so that they could match their earnings records and follow them for 2.5 years after registration. They define comparable workers as workers with earnings records in the U.S. Census Bureau’s Quarterly Workforce Indicators (QWI) who have the same sex, race, ethnicity, age, education level, and state residence as AAI apprentices. This brief also describes how the AAI apprentices’ earnings growth varied by different demographic and occupational factors. The purpose of these comparisons is not to yield an estimate of the impact of apprenticeship on participant earnings but to provide context for the earnings of AAI apprentices before, during, and up to 2.5 years after entering their programs. While it does not demonstrate impact or effectiveness, the information is useful to policymakers, state and local workforce agencies, and prospective apprentices by showing how apprentice earnings gains compare with comparable workers over the same period.

Key Takeaways

• AAI apprentices initially earn less than comparable workers, but catch up early in the apprenticeship, and ultimately earn more than comparable workers.
• Earnings patterns for subgroups of AAI apprentices mirror those for all AAI apprentices. For all demographic subgroups—including men, women, White, Black, and Hispanic apprentices— apprentices began their apprenticeships with lower earnings than comparable workers in the corresponding subgroup, but their earnings increased at a faster pace through the apprenticeship and eventually they earned more than comparable workers.
• Earnings for AAI apprentices who were newly hired and those who were incumbent workers increased relative to comparable workers, but the increase was faster for new workers.
• Earnings growth for AAI apprentices increased relative to comparable workers for all occupations, although information technology (IT) and healthcare apprentices experienced faster quarterly earnings growth than did construction and manufacturing apprentices.

Citation

Katz, B., Lerman, R., Kuehn, D., Shakesprere, J. (2022). Abt Associates. Did Apprentices Achieve Faster Earnings Growth Than Comparable Workers? Findings from the American Apprenticeship Initiative Evaluation. Chief Evaluation Office, U.S. Department of Labor.

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This study was sponsored by the Employment and Training Administration, Office of Policy Development and Research, Division of Research and Evaluation, and was produced outside of CEO’s standard research development process.