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Devolving skills: the case of the Apprenticeship Grant for Employers

Author

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  • Cavaglia, Chiara
  • Mcnally, Sandra
  • Overman, Henry G.
Abstract
One rationale for devolution is that local decision makers may be well placed to adapt national policies to the local context. We test whether such adaptation helps meet programme objectives in the case of the Apprenticeship Grant for Employers. Originally a national programme, aimed at incentivising employers to take on apprentices, reforms a few years into operation gave some Local Authorities negotiated flexibilities in how the scheme operated. We consider the impact of the national scheme and then use a difference‐in‐differences approach to test whether flexibility led to an increase in the number of apprenticeship starts in devolved areas relative to control groups. We find that flexibility had zero effect. There is suggestive evidence that this is because flexibilities were negotiated on the wrong margins.

Suggested Citation

  • Cavaglia, Chiara & Mcnally, Sandra & Overman, Henry G., 2020. "Devolving skills: the case of the Apprenticeship Grant for Employers," LSE Research Online Documents on Economics 106502, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:106502
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    References listed on IDEAS

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    1. Alberto Abadie & Javier Gardeazabal, 2003. "The Economic Costs of Conflict: A Case Study of the Basque Country," American Economic Review, American Economic Association, vol. 93(1), pages 113-132, March.
    2. Sandra McNally, 2018. "Apprenticeships in England: what does research tell us?," CVER Briefing Notes 008, Centre for Vocational Education Research.
    3. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
    4. Merrilees, W J, 1984. "Do Wage Subsidies Stimulate Training? An Evaluation of the Craft Rebate Scheme," Australian Economic Papers, Wiley Blackwell, vol. 23(43), pages 235-248, December.
    5. Alberto Abadie & Alexis Diamond & Jens Hainmueller, 2015. "Comparative Politics and the Synthetic Control Method," American Journal of Political Science, John Wiley & Sons, vol. 59(2), pages 495-510, February.
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    Cited by:

    1. Jiaqi Li & Anna Valero & Guglielmo Ventura, 2020. "Trends in job-related training and policies for building future skills into the recovery," CVER Research Papers 033, Centre for Vocational Education Research.
    2. Yen-Ling Lin & Cheng-Yi Kang, 2023. "The Impact of Labor Market Risk on Youth Career Preparation for Sustainable Development: Evidence from Taiwan," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    3. Guglielmo Ventura, 2020. "What future for apprenticeships after coronavirus?," CVER Briefing Notes 012, Centre for Vocational Education Research.

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    More about this item

    Keywords

    apprenticeships; devolution; employment;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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