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Abstract for:

Apprenticeships for Young People in England: Is there a Payoff?

Chiara  Cavaglia,  Sandra  McNally,  Guglielmo  Ventura,  November 2017
Paper No' CVERDP010: | Full paper (pdf)
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Keywords: apprenticeship; vocational education

JEL Classification: I20; I28; J24

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In recent times, there has been a policy drive to increase the number of people undertaking apprenticeships in England. In this paper we examine the characteristics of young people who start an apprenticeship and we look at whether there is an earnings premium a few years later. Specifically, we use administrative data in England to track students through their education and into the labour market. We analyse the earnings differential to starting an apprenticeships after a few years of experience (at the age of 28). Starting an apprenticeship is associated with a positive earnings differential on average. This is much larger for men than for women, mainly reflecting the different sectors in which they start their apprenticeship. Our analysis also suggests barriers to opportunity for accessing apprenticeship in the first place – for example, for those from economically disadvantaged backgrounds.