Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
Evaluations of employment programs usually focus on direct impacts on participants. Yet employment programs can have a range of indirect effects that are rarely quantified. This paper analyzes the impact of a subsidized apprenticeship program offer...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/916611534786094407/Creating-new-positions-direct-and-indirect-effects-of-a-subsidized-apprenticeship-program http://hdl.handle.net/10986/30288 |
| Summary: | Evaluations of employment programs
usually focus on direct impacts on participants. Yet
employment programs can have a range of indirect effects
that are rarely quantified. This paper analyzes the impact
of a subsidized apprenticeship program offering dual
on-the-job and theoretical training in Côte d'Ivoire.
The experiment simultaneously randomized whether
apprenticeship positions opened by firms were filled by the
program, and whether interested youths were assigned to a
formal apprenticeship. This design allows for estimating
direct impacts on youths and indirect impacts on firms
selected to host apprentices. The analysis identifies
whether individuals forgo other employment or training
opportunities, and whether firms replace other workers with
program participants. The share of youths in apprenticeships
increased by 52.8 percentage points. This estimate accounts
for a significant windfall effect: 26 percent of the formal
apprentices who were placed substituted out of traditional
apprenticeships. The inflow of apprentices into firms
increased significantly, but also induced substitution
effects, as firms hired 0.23 fewer traditional apprentices
per formal apprentice placed. Overall, the net number of
apprenticeship positions created was between 51 and 74
percent of the number of formal apprentices placed. In the
short term, impacts on earnings were not significant for
youths, but firms benefited from an increase in the net
value of work provided by apprentices. |
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