Apprenticeship Program Performance and Macroeconomic Fluctuations: A Case Study of Nevada's Construction Industry

Abstract

Apprenticeship training in construction is an important source of human capital investment for workers, employers, and society. We address the extent to which macroeconomic fluctuations such as building booms and recessions affect apprenticeship completion rates—an important indicator of program performance. Using data from the U.S. Department of Labor, we find that one of the most important determinants of performance is a measure of macroeconomic activity during the apprenticeship period. Apprentices that register into a growing economy, as indicated by falling unemployment rates, are significantly more likely to complete their programs than those who register into a recessionary economy. We also find that apprentices in programs jointly sponsored by trade unions and signatory contractors have higher completion rates and are less affected by conditions in the macroeconomy.