Direct and Indirect Effects of Subsidized Dual Apprenticeships (Crépon & Premand, 2024)

Welcome to Revise and Resubmit, the podcast where we break down impactful research that shapes our world. Today, we’re diving into a fascinating study published in The Review of Economic Studies—one of the prestigious FT50 journals, a symbol of excellence in business research. This paper, titled Direct and Indirect Effects of Subsidized Dual Apprenticeships, is authored by Bruno Crépon and Patrick Premand, and it examines how well-designed interventions can reshape apprenticeship programs. The research sets up a double-sided experiment, bringing both firms and young job seekers into the picture. It’s a story of financial constraints, subsidies, and vocational training. The study reveals that wage subsidies can spark an influx of new apprentices without crowding out traditional ones, offering firms a better talent pool. And here’s where things get even more interesting—these apprentices aren’t just doing menial tasks; the dual training helps them take on more complex work, boosting their earnings even four years down the line. Before we dive into the nitty-gritty, let’s thank Bruno Crépon, Patrick Premand, and Oxford Academic for making this valuable research accessible to all. Now, here’s the question: Can interventions like these not only reshape the apprenticeship market but also redefine the future of youth employment and technical education? Reference Bruno Crépon, Patrick Premand (2024) Direct and Indirect Effects of Subsidized Dual Apprenticeships, The Review of Economic Studies. https://doi.org/10.1093/restud/rdae094