In Simple Words
Imagine an auto repair shop owner promising an apprentice that they will learn engine diagnostics, but instead using them solely for manual tire changing. Because the apprentice cannot enforce the promise or verify the curriculum, they refuse to invest time in the apprenticeship unless an independent school oversees the lessons.
Eligible young applicants in Cote d Ivoire
- Not assigned a formal apprenticeship
- Group used for comparison
- Assigned subsidized dual apprenticeship
- Training participation 48.4 percentage points higher
Training during 2014 to 2016. The full subsidy, firm training and classroom package was tested; firm commitment was not separately tested.
See source →Research question
In informal labor markets lacking enforceable contracts, enterprise owners cannot credibly commit to providing transferable, general skill training. Consequently, youth refuse to accept wage cuts or pay fees without guarantees of portable skill acquisition.
Participants
N = 731 informal firms and 1,842 youth across 7 urban localities in Côte d'Ivoire.
Study Design
Double-sided RCT evaluating training participation under monitored dual training contracts combining classroom and firm instruction.
Results
Combining external classroom instruction (180 hours/year) with monitored apprenticeship contracts led to a 48.4 percentage point increase in training participation (p < 0.0001) and a 10.83 month increase in training duration over the control group mean of 2.93 months.
Takeaway
Complement informal enterprise apprenticeships with mandated, externally monitored theoretical coursework to guarantee general skill delivery and overcome firm commitment failures.
Source and citation
See source →Read alongside the research
Plain-English glossary
Original explanations, informed by the references below. Examples are illustrations, not data from the studies above. The research text stays unchanged.
- Percentage points
The difference between two percentages.
ExampleA rise from 40% to 50% is 10 percentage points. Relative to the starting value, that is a 25% increase.
Office for National Statistics · Percentages ↗Read more about percentage points →- Randomized controlled trial
A study that uses chance, like drawing lots, to decide who receives each option being compared. Researchers compare the groups’ outcomes to estimate the effect of those options.
ExampleA lottery assigns volunteers to a training programme or a comparison group. Researchers then compare their outcomes.
GET-IT glossary · Randomized study ↗Read more about randomized controlled trial →