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Direct and Indirect Effects of Subsidized Dual Apprenticeships

Author

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  • Bruno Crépon
  • Patrick Premand

Abstract

Public interventions in the apprenticeship market often aim to increase demand or returns. We set up a double-sided experiment with youth and firms to analyse a subsidized dual apprenticeship program. This intervention seeks to relax financial constraints for youth by offering a wage subsidy and to make apprenticeship more attractive by providing vocational training in technical skills that complements on-the-job training. We document a large increase in youth participation in apprenticeship, yet the inflow of apprentices induces little crowding out of traditional apprentices in firms. The intervention leads to an increase in youth demand for apprenticeship, enabling firms to fill open apprenticeship positions. The subsidy compensates apprentices for low wages but does not alleviate financial constraints. Consistent with the dual training component contributing to an increase in youth demand for apprenticeship, youth perform more complex tasks and have higher earnings 4 years after the start of the experiment.

Suggested Citation

  • Bruno Crépon & Patrick Premand, 2025. "Direct and Indirect Effects of Subsidized Dual Apprenticeships," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 92(5), pages 2979-3028.
    • Handle: RePEc:oup:restud:v:92:y:2025:i:5:p:2979-3028.
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    File URL: http://hdl.handle.net/10.1093/restud/rdae094
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    Cited by:

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    2. Marianne Bertrand & Bruno Crépon & Alicia Marguerie & Patrick Premand, 2021. "Do Workfare Programs Live Up to Their Promises? Experimental Evidence from Cote D’Ivoire," NBER Working Papers 28664, National Bureau of Economic Research, Inc.
    3. Maddalena Honorati & Indhira Santos & Indhira Santos, 2024. "Investing in Skills to Accelerate Job Transitions," World Bank Publications - Reports 42103, The World Bank Group.
    4. Chiplunkar, Gaurav & Kelley, Erin & Lane, Gregory, 2024. "Competitive Job Seekers: When Sharing Less Leaves Firms at a Loss," IZA Discussion Papers 16840, IZA Network @ LISER.
    5. Alaref, Jumana & Brodmann, Stefanie & Premand, Patrick, 2020. "The medium-term impact of entrepreneurship education on labor market outcomes: Experimental evidence from university graduates in Tunisia," Labour Economics, Elsevier, vol. 62(C).
    6. Araujo,Caridad & Baird,Sarah Jane & Das,Saini & Ozler,Berk & Parisotto,Luca & Woldehanna,Tassew, 2024. "Social Protection and Youth," Policy Research Working Paper Series 10832, The World Bank.
    7. Santiago Caicedo & Miguel Espinosa & Arthur Seibold, 2022. "Unwilling to Train?—Firm Responses to the Colombian Apprenticeship Regulation," Econometrica, Econometric Society, vol. 90(2), pages 507-550, March.
    8. Eric Schuss, 2023. "Beyond windfall gains: The redistribution of apprenticeship costs and vocational education of care workers," Economica, London School of Economics and Political Science, vol. 90(359), pages 978-1002, July.

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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