How do apprenticeships benefit young workers? An Evaluation of Registered Apprenticeship Programs in Ohio Paper
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About the Paper
Researchers investigated how less-educated and less-experienced workers in Ohio benefit from registered apprenticeships. The researchers focused on 18-24 year old males. Regression results show that compared to individuals who have similar pre-program educational backgrounds but have little or no job training, apprentices have significantly higher earnings six years after program entry. The wage premiums for apprentices persist for at least nine years after program entry. Additional analyses suggest that, among apprentices, apprenticeship completion is associated with 40 percent higher earnings. However, in Ohio, the enrollment of apprenticeship programs is low and around 50 percent of apprentices drop out of their programs. The researchers conjecture that apprenticeship training benefits individuals because: 1) apprentices acquire work experience during their training; and 2) those who complete their programs get a nationally recognized certificate, which signals that they have high productivity to potential employers. Therefore, the researchers also propose a discrete choice dynamic model, in which individuals make apprenticeship participation and completion decisions by considering how their decisions influence their future earnings. Note that since the researchers only have access to Ohio data, results of this study are not nationally representative.
Research Gaps
- To explore potential policy interventions, we also propose a discrete choice dynamic model in which individuals make apprenticeship participation and completion decisions while taking into account their potential future earnings. In the future research, we will estimate this model to investigate the potential mechanisms through which apprenticeships improve individuals’ earnings, and we will conduct counterfactual experiments to see how policy interventions, such as subsidies to apprentices’ in-program wages would increase apprenticeship participation and completion rates. (page 26)
Citation
Lou, T., Hawley, J. (2018). The Ohio State University. How do apprenticeships benefit young workers? An Evaluation of Registered Apprenticeship Programs in Ohio. Chief Evaluation Office, U.S. Department of Labor.
This study was part of the Department of Labor Scholars Program, and was produced outside of CEO’s standard research development process.