Impacts of Dual Apprenticeships Combining On-the-Job and Vocational Training in Côte d'Ivoire
The Government of Côte d’Ivoire, the World Bank, and IPA Côte d’Ivoire partnered to conduct a randomized evaluation to assess the impact of a subsidized dual apprenticeship program on youth employment. The program increased youth participation in apprenticeships by 52.8 percentage points. Only 0.23 traditional apprentices were displaced for each formal apprentice placed, showing that the program was successful in increasing the number of apprenticeship positions filled in firms. Youth earnings increased by 15 percent four years after the program started.
The Challenge
In Côte d'Ivoire, as in many low- and middle-income countries, traditional apprenticeships are one of the most common forms of job training, especially for youth who don't complete primary or secondary education. In Africa, traditional apprentices outnumber youth in vocational schools by up to four times.1 These apprenticeships involve on-the-job training in small, informal firms through private arrangements between youth (or their parents) and firm owners.2 A survey conducted as part of the evaluation shows that traditional apprentices make up over half of the workforce in firms, with an average of 3.4 apprentices in firms with 6.4 total employees.
Apprenticeship systems face several challenges: some youth may not be able to enter apprenticeship due to entry cost or low remuneration, businesses may be reluctant to train apprentices, and connecting interested youth with willing businesses can be difficult.3 To address these challenges, the Côte d'Ivoire government launched a formal apprenticeship program in 2011 as part of its emergency youth employment and skills development project (PEJEDEC).4 The program had two main components: a monthly subsidy of 30,000 franc CFA (approximately USD 54, or half the formal minimum wage) paid to apprentices, and dual training that combined on-the-job training with courses in vocational centers. The program also introduced apprenticeship contracts and certification.
The Intervention
The Côte d'Ivoire government (through the Agence Nationale de Formation Professionnelle—AGEFOP), the World Bank, and IPA Côte d'Ivoire partnered to evaluate the dual apprenticeship program. The study involved 1,832 youth applicants and 731 firms from seven urban areas of Côte d'Ivoire that took part in one of its initial phases. Youth interested in the program were randomly assigned to either receive the program or enter a comparison group, while firms were randomly assigned to host formal apprentices or not.
Results
The program increased overall youth participation in apprenticeships and helped firms fill new positions with little displacement effects. Youth participation in apprenticeships increased by 52.8 percentage points over the course of the program. This increase consisted of a 71.2 percentage point rise in formal apprenticeships, partially offset by an 18.5 percentage point decline in traditional apprenticeships. Importantly, only 26 percent of youth who entered formal apprenticeships would have entered traditional apprenticeships without the program, indicating the program largely reached youth who wouldn't have been able to access any apprenticeship training otherwise.
The program created substantial new training opportunities rather than simply replacing existing ones. Each formal apprentice position subsidized through the program replaced only 0.23 traditional apprenticeship positions, resulting in 74-77 percent net new apprenticeship positions filled in firms.
The economic benefits for participants were significant and lasting. Four years after program initiation (approximately two years after completion), participants earned 15 percent more than non-participants. This earnings increase resulted from participants developing skills not typically acquired in traditional apprenticeships, making them able to undertake more complex, non-routine tasks, particularly benefiting their productivity in self-employment and independent activities.
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Sources
1 Deon Filmer et al., "Youth Employment in Sub-Saharan Africa" (Washington, DC: World Bank, 2014), Africa Development Series.
2 Richard Walther, "Towards a Renewal of Apprenticeship in West Africa" (Paris: Agence Française de Développement, 2008).
3 Morgan Hardy and Jamie McCasland, "Are Small Firms Labor Constrained? Experimental Evidence from Ghana," American Economic Journal: Applied Economics 15, no. 2 (2023): 253-284.
4 PEJEDEC is the Projet Emploi Jeune et Développement des Compétences, aims to improve access to temporary employment opportunities and skills development for young men and women of all qualification levels, aged 18 to 40, who are unemployed or underemployed across Côte d'Ivoire.