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Do Subsidized Adult Apprenticeships Increase the Vocational Attendance Rate?

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  • Cecilie Dohlmann Weatherall

Abstract

In 1997, to deal with the challenges of globalization and the increased demand for skills, Denmark introduced a very generous apprenticeship subsidy for adults of 25 years and above. The aim of the adult apprenticeship subsidy (AAS) was to increase vocational skills among people with low schooling, in order to fill job vacancies. This paper evaluates the effect of the AAS, which increases an apprentice's income by more than 30 percent on average, on the vocational education attendance rate. Both rich panel data and the exogenous shift in the AAS in 1997 make possible the empirical examination of the effect of the subsidy on people with low schooling with the use of the difference-in-differences (DiD) estimator. The results show that the AAS had a significant positive effect on the vocational attendance rate among low-schooled 25-year-old men in its first full year of operation but no significant effect thereafter.

Suggested Citation

  • Cecilie Dohlmann Weatherall, 2009. "Do Subsidized Adult Apprenticeships Increase the Vocational Attendance Rate?," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 55(1), pages 61-81.
    • Handle: RePEc:aeq:aeqaeq:v55_y2009_i1_q1_p61-81
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    More about this item

    Keywords

    human capital; apprenticeship; subsidy; attendance rate;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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