Does Doing an Apprenticeship Pay Off? Evidence from Ghana
In 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.
|Date of creation:||01 Feb 2008|
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