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Delivering Skills: Apprenticeship Program Sponsorship and Transition from Training

  • Cihan Bilginsoy

Formal apprenticeship programs in the US construction industry are organized under one of three forms: jointly by unions and management in the unionized sector, and unilaterally by a group of employers or by a single employer in the open shop sector. I use parametric survival analysis to compare completion and quit rates of electrical and mechanical trades apprentices across program types, controlling for sex, race, education, wage, program size, and unemployment rate among other factors. I find substantial and statistically significant differences in terms of the probability of completion and cancellation and the duration of apprenticeship. Apprentices in joint programs, regardless of demographic characteristics, have the highest probability of completion, followed by unilateral multiple and unilateral single employers, but their average time to graduation is longer. The mean duration of a cancelled apprenticeship in open shop programs does not appear to be long enough for apprentices to accumulate a substantial amount of skills. Although non-joint programs graduate a smaller fraction of their apprentices, those who graduate do so at a significantly faster pace than their counterparts in joint programs.

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Paper provided by University of Utah, Department of Economics in its series Working Paper Series, Department of Economics, University of Utah with number 2005_01.

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Length: 32 pages
Date of creation: 2005
Date of revision:
Publication status: Published in Industrial Relations, October 2007, 46(4), 738-765.
Handle: RePEc:uta:papers:2005_01
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Web page: http://economics.utah.edu

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  1. Schlicht, Ekkehart, 1992. "Endogenous On-the-Job Training with Moral Hazard," Darmstadt Discussion Papers in Economics 37767, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
  2. Snower, Dennis J., 1994. "The Low-Skill, Bad-Job Trap," CEPR Discussion Papers 999, C.E.P.R. Discussion Papers.
  3. Daron Acemoglu & Joern-Steffen Pischke, 1999. "Certification of Training and Training Outcomes," Working papers 99-28, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Mortensen, Dale T, 1988. "Wages, Separations, and Job Tenure: On-the-Job Specific Training or Matching?," Journal of Labor Economics, University of Chicago Press, vol. 6(4), pages 445-71, October.
  5. Cihan Bilginsoy, 2003. "The Hazards of Training: Attrition and Retention in Construction Industry Apprenticeship Programs," ILR Review, Cornell University, ILR School, vol. 57(1), pages 54-67, October.
  6. James Malcomson & James W. Maw, 2002. "General Training by Firms, Apprentice Contracts, and Public Policy," Economics Series Working Papers 86, University of Oxford, Department of Economics.
  7. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages F112-42, February.
  8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-90, October.
  9. Thomas, Jonathan M, 1996. "On the Interpretation of Covariate Estimates in Independent Competing-Risks Models," Bulletin of Economic Research, Wiley Blackwell, vol. 48(1), pages 27-39, January.
  10. Cihan Bilginsoy, 2003. "The hazards of training: Attrition and retention in construction industry apprenticeship programs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 57(1), pages 54-67, October.
  11. Booth, Alison L & Satchell, Stephen E, 1994. "Apprenticeships and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 676-95, October.
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