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...

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Main Authors:	Crépon, Bruno, Premand, Patrick
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	YOUTH EMPLOYMENT JOBS ON-THE-JOB TRAINING YOUTH TRAINING LABOR POLICY APPRENTICESHIP SUBSIDIES WAGE SUBSIDY MICROENTERPRISE SMALL AND MEDIUM ENTERPRISES
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

id	okr-10986-30288
recordtype	oai_dc
spelling	okr-10986-302882021-06-08T14:42:47Z Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program Crépon, Bruno Premand, Patrick YOUTH EMPLOYMENT JOBS ON-THE-JOB TRAINING YOUTH TRAINING LABOR POLICY APPRENTICESHIP SUBSIDIES WAGE SUBSIDY MICROENTERPRISE SMALL AND MEDIUM ENTERPRISES 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. 2018-08-23T17:06:51Z 2018-08-23T17:06:51Z 2018-08 Working Paper 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 English Policy Research Working Paper;No. 8561 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Cote d'Ivoire
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	YOUTH EMPLOYMENT JOBS ON-THE-JOB TRAINING YOUTH TRAINING LABOR POLICY APPRENTICESHIP SUBSIDIES WAGE SUBSIDY MICROENTERPRISE SMALL AND MEDIUM ENTERPRISES
spellingShingle	YOUTH EMPLOYMENT JOBS ON-THE-JOB TRAINING YOUTH TRAINING LABOR POLICY APPRENTICESHIP SUBSIDIES WAGE SUBSIDY MICROENTERPRISE SMALL AND MEDIUM ENTERPRISES Crépon, Bruno Premand, Patrick Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
geographic_facet	Africa Cote d'Ivoire
relation	Policy Research Working Paper;No. 8561
description	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.
format	Working Paper
author	Crépon, Bruno Premand, Patrick
author_facet	Crépon, Bruno Premand, Patrick
author_sort	Crépon, Bruno
title	Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
title_short	Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
title_full	Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
title_fullStr	Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
title_full_unstemmed	Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program
title_sort	creating new positions? direct and indirect effects of a subsidized apprenticeship program
publisher	World Bank, Washington, DC
publishDate	2018
url	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
_version_	1764471658148528128

Creating New Positions? Direct and Indirect Effects of a Subsidized Apprenticeship Program

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