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Delivering Skills: Apprenticeship Program Sponsorship and Transition from Training

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  • Cihan Bilginsoy

Abstract

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.

Suggested Citation

  • Cihan Bilginsoy, 2005. "Delivering Skills: Apprenticeship Program Sponsorship and Transition from Training," Working Paper Series, Department of Economics, University of Utah 2005_01, University of Utah, Department of Economics.
  • Handle: RePEc:uta:papers:2005_01
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    References listed on IDEAS

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    1. 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.
    2. Acemoglu, Daron & Pischke, Jorn-Steffen, 2000. "Certification of training and training outcomes," European Economic Review, Elsevier, vol. 44(4-6), pages 917-927, May.
    3. Malcomson, James M. & Maw, James W. & McCormick, Barry, 2003. "General training by firms, apprentice contracts, and public policy," European Economic Review, Elsevier, vol. 47(2), pages 197-227, April.
    4. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    5. Snower, Dennis J., 1994. "The Low-Skill, Bad-Job Trap," CEPR Discussion Papers 999, C.E.P.R. Discussion Papers.
    6. 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.
    7. Schlicht, Ekkehart, 1996. "Endogenous on-the-job training with moral hazard," Labour Economics, Elsevier, vol. 3(1), pages 81-92, August.
    8. Jovanovic, Boyan, 1979. "Job Matching and the Theory of Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 972-990, October.
    9. 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 445-471, October.
    10. Booth, Alison L & Satchell, Stephen E, 1994. "Apprenticeships and Job Tenure," Oxford Economic Papers, Oxford University Press, vol. 46(4), pages 676-695, October.
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    Cited by:

    1. Fries, Jan & Göbel, Christian & Maier, Michael F., 2013. "Do employment subsidies reduce early apprenticeship dropout?," ZEW Discussion Papers 13-053, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Dostie, Benoit, 2010. "A Competing Risks Analysis of the Determinants of Low Completion Rates in the Canadian Apprenticeship System," CLSSRN working papers clsrn_admin-2010-29, Vancouver School of Economics, revised 21 Oct 2010.

    More about this item

    Keywords

    Apprenticeship; turnover; construction survival analysis;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M53 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Training

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