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School-to-Work Programs in the United States: A Multi-Firm Case Study of Training, Benefits, and Costs

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  • Laurie J. Bassi
  • Jens Ludwig

Abstract

This paper provides one of the first detailed analyses of the training and finances of school-to-work (STW) programs in the United States. The data are from case studies of seven STW programs sponsored by firms of diverse size, type, and location. In almost every case, the firm paid at least some of the costs of general training. Most firms recoup some of these costs through rents captured by hiring former apprentices, but only in two cases do benefits seem likely to outweigh costs. The findings suggest that certain imperfections in American labor markets—for example, compensation below marginal product for some workers, and a gap between productivity and wages that increases with workers' skill levels—motivate firms to invest in general skills, but these labor market imperfections may not be great enough to allow firms to sustain STW programs over the long run.

Suggested Citation

  • Laurie J. Bassi & Jens Ludwig, 2000. "School-to-Work Programs in the United States: A Multi-Firm Case Study of Training, Benefits, and Costs," ILR Review, Cornell University, ILR School, vol. 53(2), pages 219-239, January.
    • Handle: RePEc:sae:ilrrev:v:53:y:2000:i:2:p:219-239
    DOI: 10.1177/001979390005300203
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    References listed on IDEAS

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    Cited by:

    1. Ramadhani Marijani & Jesper Katomero & Asha Hayeshi & Justine Kajerero, 2023. "The Impact of Field-Based Practical Training on Job Performance in Tanzania: Perspectives From Students and Work Supervisors," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. Clark, Damon & Fahr, René, 2001. "The Promise of Workplace Training for Non-College-Bound Youth: Theory and Evidence from German Apprenticeship," IZA Discussion Papers 378, Institute of Labor Economics (IZA).
    3. Francis C. Anyim & Cyril Oseloka Ikemefuna & A. Oluseyi Shadare, 2011. "Internal Versus External Staffing in Nigeria: Cost-Benefit Implications," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 2(4), pages 35-42, December.
    4. Harry Holzer, 2012. "Good workers for good jobs: improving education and workforce systems in the US," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-19, December.

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