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Do Apprenticeships Pay? Evidence for England

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  • Chiara Cavaglia
  • Sandra McNally
  • Guglielmo Ventura

Abstract

The importance of apprenticeships for early labour market transitions varies across countries and over time. In recent times, there has been a policy drive to increase the number of people undertaking apprenticeships in England and there are plans to dramatically change the post-16 system, which would include making apprenticeships a more important part of it. This raises the question as to how beneficial apprenticeships are to young people currently - especially in the context of a country without an existing broad-base of apprenticeship provision. In this paper, we use administrative data to track students through their schooling and into the labour market. We analyse the payoff to apprenticeships for young people in the short term (when they are around 23 years old) and after a few years in the labour market (when they around 28 years old). We ask whether there is a payoff for young men and women in terms of employment and earnings. Our results suggest a positive earnings differential on average which has a causal interpretation. However, there is huge variability in the estimated earnings differential between sectors and this has important implications for the gender earnings gap because of the different choices made by men and women.

Suggested Citation

  • Chiara Cavaglia & Sandra McNally & Guglielmo Ventura, 2018. "Do Apprenticeships Pay? Evidence for England," CEP Industrial Strategy 03, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepisp:03
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    Cited by:

    1. Sönke Hendrik Matthewes & Guglielmo Ventura, 2022. "On Track to Success? Returns to vocational education against different alternatives," CVER Research Papers 038, Centre for Vocational Education Research.
    2. Muehlemann, Samuel & Dietrich, Hans & Pfann, Gerard & Pfeifer, Harald, 2022. "Supply Shocks in the Market for Apprenticeship Training," Economics of Education Review, Elsevier, vol. 86(C).
    3. Chiara Zisler & Damiano Pregaldini & Uschi Backes-Gellner, 2023. "Opening doors for immigrants: The importance of occupational and workplace-based cultural skills for successful labor market entry," Economics of Education Working Paper Series 0204, University of Zurich, Department of Business Administration (IBW).
    4. Steve Machin & Sandra McNally & Camille Terrier & Guglielmo Ventura, 2020. "Closing the Gap between Vocational and General Education? Evidence from University Technical Colleges in England," CESifo Working Paper Series 8678, CESifo.
    5. Salah Al-Ali, 2021. "How Successful is Field Training Program offered by the Public Authority for Applied Education and Training, PAAE&T, Kuwait, in Reducing Dependence on Expatriates?," Technium Social Sciences Journal, Technium Science, vol. 23(1), pages 54-66, September.
    6. Salah Al-Ali, 2021. "How successful is the Industrial Institutes, Kuwait, in reducing dependence on expatriates?," Technium Social Sciences Journal, Technium Science, vol. 23(1), pages 78-102, September.
    7. Salah Al-Ali, 2021. "How successful is the Higher Institute of Energy, Kuwait, in reducing dependence on expatriates?," Technium Social Sciences Journal, Technium Science, vol. 22(1), pages 227-248, August.
    8. Sönke Hendrik Matthewes & Guglielmo Ventura, 2022. "On Track to Success? Returns to Vocational Education Against Different Alternatives," CEPA Discussion Papers 58, Center for Economic Policy Analysis.
    9. Salah Al-Ali, 2021. "How successful is the College of Heath Sciences, Kuwait, in reducing dependence on expatriates?," Technium Social Sciences Journal, Technium Science, vol. 21(1), pages 393-413, July.
    10. Guglielmo Ventura, 2020. "What future for apprenticeships after coronavirus?," CVER Briefing Notes 012, Centre for Vocational Education Research.

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    More about this item

    Keywords

    apprenticeship; vocational education;

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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