Lifetime earnings and the training of young men in Britain

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A model is estimated in which the type of training undertaken is determined by the predicted lifetime earnings for each type of training, personal factors and educational attainment. Lifetime earnings has a positive and significant effect on the allocation of individuals across training types. The impact is variable: a 10% rise in (own) lifetime earnings raises the fraction undertaking off-the-job training by up to 0.059 but the fraction undertaking no-training by as little as 0.017. If the government were to pay an annual grant of £3000 to apprentices for 3 years, the proportion of apprentices in the sample would increase from 28% to 30%.

Document Type: Research Article


Publication date: June 1, 1996

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