Does Doing an Apprenticeship Pay Off?Â Evidence from Ghana
AbstractIn Ghana there is a highly developed apprenticeship system where young men and women undertake sector-specific private training, which yields skills used primarily in the informal sector.� In this paper we use a 2006 urban based household survey with detailed questions on the background, training and earnings of workers in both wage and self-employment to ask whether apprenticeship pays off.� We show that apprenticeship is by far the most important institution providing training and is undertaken primarily by those with junior high school or lower levels of education.� The summary statistics indicate that those who have done an apprenticeship earn much less than those who have not.� This suggests that endogenous selection into the apprenticeship system is important, and we take several measures to address this issue.� We find a significant amount of heterogeneity in the returns to apprenticeship across education.� Our most conservative estimates imply that for currently employed people, who did apprenticeships but have no formal education, the training increases their earnings by 50%.� However this declines as education levels rise.� We argue that our results are consistent with those who enter apprenticeship with no education having higher ability than those who enter with more education.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2008-08.
Date of creation: 01 Feb 2008
Date of revision:
Apprenticeship; Africa; Training; Treatment; Control Function;
Other versions of this item:
- Courtney Monk & Justin Sandefur & Francis Teal, 2008. "Does Doing an Apprenticeship Pay Off? Evidence from Ghana," CSAE Working Paper Series 2008-08, Centre for the Study of African Economies, University of Oxford.
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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