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The net benefits to employers’ investments in apprenticeships : case study evidence from the UK

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Hasluck, Chris, 1947- and Hogarth, Terence. (2010) The net benefits to employers’ investments in apprenticeships : case study evidence from the UK. The Canadian Apprenticeship Journal, Vol.2 . ISSN 1920-7654

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Abstract

In a flexible labour market where people can move relatively easily between jobs and employers, there can be disincentives to train. Employers will be reluctant to train if they are, other things being equal, unsure about the extent to which they will be able to recoup their training costs. In the UK, public policy is committed to increasing the number of people completing apprenticeships in recognition of the benefits this form of training confers on both employers and individual apprentices. Considerable efforts are being made by the public agencies responsible for apprenticeships to persuade employers to participate in this form of training by persuading them of the benefits of doing so. Based on a limited number of employer case studies, this paper outlines the net costs borne by employers in training apprentices and the period over which these costs are recouped by the employer. It demonstrates that employers are able to recoup their costs over one to two years in many instances.

Item Type: Journal Article
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Institute for Employment Research
Library of Congress Subject Headings (LCSH): Apprenticeship programs -- Economic aspects, Apprenticeship programs -- Great Britain -- Case studies
Journal or Publication Title: The Canadian Apprenticeship Journal
Publisher: Canadian Apprenticeship Forum
ISSN: 1920-7654
Date: 2010
Volume: Vol.2
Status: Peer Reviewed
Access rights to Published version: Restricted or Subscription Access
References: Apprenticeship Task Force. Apprenticeship Task Force Final Report: The Business Case for Apprenticeships. London: 2005. Blake, N., J. Dods and S. Griffiths. Employers skill survey: existing survey evidence and its use in the analysis of skill deficiencies. Nottingham: Department for Education and Employment, 2000. Casey, B. “The Dual Apprenticeship System and the Recruitment and Retention of Young Persons in Germany” British Journal of Industrial Relations 24, no. 1 (1986): 63–81. Casey, B. “Recent Developments in the German Apprenticeship System.” British Journal of Industrial Relations 29, no. 2 (1991): 205–222 Dearden, L., H. Reed and J. Van Reenen. “Who gains when workers train? Training and corporate productivity in a panel of British industries.” Centre for Economic Policy Research Discussion Paper, no. 2486 (2000). Dearden, L., H. Reed and J. Van Reenen, The Impact of Training on Productivity and Wages: Evidence from British Panel Data. Centre for Economic Performance, 2005 DfES (Department for Education and Skills). Modern Apprenticeships: The Way to Work. Nottingham: Department for Education and Skills, 2001. Fuller, A. and L. Unwin. “What Counts as Good Practice in Contemporary Apprenticeships? Evidence from Two Sectors in England.” Education and Training 49, no.2 (2007). Hasluck, C. and others. Modern Apprenticeships: A survey of employers. DfEE Research Report, RS53. London: Stationery Office, 1997. Hasluck, C. and others. The Net Benefits to Employers of Training. London: Apprenticeship Ambassadors Network, 2008. Hogarth, T. and others. The Net Costs of Training to Employers. Department for Employment Research Series, HMSO, 1996. Hogarth, T. and others. Employers’ Net Costs of Training to NVQ Level 2. DfEE Research Report RR 57. London: Stationery Office, 1998. Hogarth, T. and C. Hasluck. Employers’ Net Costs of Training Modern Apprentices. Deparment for Education and Skills, 2003 Hogarth, T. and others. Review of Employer Collective Measures: Empirical Review, Evidence Report 7. Wath-upon-Dearne: UK Commission for Employment and Skills, 2009. House of Lords. Apprenticeship: a key route to skills: Volume I – Report. London: House of Lords Select Committee on Economic Affairs, 2007. LSC/DfES. End to End Review of the Delivery of Modern Apprenticeships. Coventry: LSC, National Office, 2005. McIntosh, S. A Cost-Benefit Analysis of Apprenticeships and Other Vocational Qualifications. Department for Education and Skills Research Paper RR834. Sheffield: 2007. Mohrenweiser, J. and T. Zwick. “Why do firms train apprentices? The net cost puzzle reconsidered.” ZEW Diskussionspapiere der DFG-Forschergruppe, no. 3468269275 (2008).
URI: http://wrap.warwick.ac.uk/id/eprint/34559

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