Papers by Robert I LERMAN
IZA Policy Papers, 2020
Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research pu... more Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Policy Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.
The United Services Military Apprenticeship Program (USMAP) accounted for nearly one in four Regi... more The United Services Military Apprenticeship Program (USMAP) accounted for nearly one in four Registered Apprenticeships in the United States as of 2013. The 2008-13 rise in USMAP from 51,000 to nearly 88,000 apprenticeships offsets part of the sharp decline in civilian apprenticeships over the same period. Currently, about one in four enlisted sailors and one in 14 marines participates in USMAP. One of the program's major accomplishments is that it has registered about 100+ occupations with the Office of Apprenticeship (OA) in the United States Department of Labor (USDOL) that are related to civilian fields.
2016 APPAM International Conference, Jun 13, 2016
Springer eBooks, 2016
Restoring opportunity requires jobs that can generate middle class incomes. Notwithstanding conce... more Restoring opportunity requires jobs that can generate middle class incomes. Notwithstanding concerns about the declining share of middle-wage jobs, this chapter argues that building a robust apprenticeship system in the U.S. can sharply increase earnings and the share of American workers entering rewarding careers. By emphasizing "learning by doing" as a paid employee, apprenticeships are especially effective in preparing workers to gain a valued occupational qualifi cation. They enhance youth development by providing a more engaging experience than schooling does and by linking young people to mentors. They encourage employers to upgrade jobs and develop job ladders. Apprenticeships currently represent a much smaller share of the workforce in the U.S. than in most other advanced countries. This chapter contends that expanding apprenticeship is feasible and a highly cost-effective strategy for restoring opportunity.
IZA world of labor, 2014
Pros The apprentice's contribution to production is large enough to offset most costs to firms. B... more Pros The apprentice's contribution to production is large enough to offset most costs to firms. By retaining most apprentices, firms benefit substantially from low recruitment and training costs. Knowing that all trained apprentices have mastered a common set of skills is valuable to firms. Apprenticeship training enhances subsequent innovation within the training firm. Treating apprenticeship expenses as capital investments would improve measured gains. aUtHoR'S maIn meSSaGe Apprenticeship training is usually a profitable investment for firms as well as workers. Often, firms can recoup all or most of their costs within the apprenticeship period. By providing firms with information on economic returns, by helping them set up apprenticeships, and by funding off-site training, policymakers can promote the expansion of effective career training and increased worker earnings with only modest public expenditures. Cons Most firms in advanced economies do not offer apprenticeships. Firms perceive weak returns because they fear trained apprentices will be hired away by other firms. Some estimates show firms recover only modest parts of their investment during the training period. Quantitative estimates of gains for employers are uncertain, based on only a few studies. It is difficult for firms to assess the long-term benefits of apprenticeship investments. Do firms benefit from apprenticeship investments? Why spending on occupational skills can yield economic returns to employers
Southern Economic Journal, Apr 1, 1990
Page 1. Robert E. Litan Robert Z. Lawrence Charles L Schultze Editors AMERICAN * LIVING* STANDARD... more Page 1. Robert E. Litan Robert Z. Lawrence Charles L Schultze Editors AMERICAN * LIVING* STANDARDS THREATS AND CHALLENGES ESI Martin Neil Baily Margaret Mendenhall Blair Robert W. Crandall Frank Levy Richard J. Murnane Page 2. Page 3. ...
Challenge: The Magazine of Economic Affairs, May 3, 2016
Does the U.S. face a skills gap limiting growth and incomes? Manufacturers often report weak skil... more Does the U.S. face a skills gap limiting growth and incomes? Manufacturers often report weak skills but the question is controversial among economists. Many analyses deal only with academic skills and too often fail to cover the level and quality of occupational skills. Moreover, focusing on existing jobs ignores the role that skills can play in upgrading the mix of jobs in the economy. For example, countries that emphasize apprenticeship training retain a relatively high share of employment in manufacturing. This article examines the rationale for and feasibility of expanding apprenticeship in U.S. manufacturing. After describing apprenticeship's cost for workers, employers and the government, the article shows how other approaches to expand apprenticeships can successfully upgrade skills and jobs.
Springer eBooks, Dec 18, 2009
The share of US workers who undertake apprenticeship training is small compared to most other OEC... more The share of US workers who undertake apprenticeship training is small compared to most other OECD countries and compared to the number of workers who undertake postsecondary education. However, the scale of the US apprenticeship is large compared with the training funded through the federal Workforce Investment Act. Historically, US apprenticeship programmes have been highly concentrated in construction, manufacturing, and
Social Science Research Network, 2008
Challenge: The Magazine of Economic Affairs, Sep 2, 2016
Inequality of income dominates the political discourse. But America has put most of its eggs in o... more Inequality of income dominates the political discourse. But America has put most of its eggs in one basket to remedy the problem: more formal traditional education, of course. This economist argues that the approach is not as successful as advocates thought it would be. He concludes that a much more aggressive system of apprenticeships is the answer to better jobs and reduced inequality in America.
RePEc: Research Papers in Economics, 2016
Skill Development in Middle Level Occupations: The Role of Apprenticeship Training Concerns about... more Skill Development in Middle Level Occupations: The Role of Apprenticeship Training Concerns about the polarization of the labor market are widespread. However, countries vary widely in strategies for strengthening jobs at intermediate levels of skill. This paper examines the diversity of approaches to apprenticeship and related training for middle-level occupations. We begin by defining and describing middle-skills occupations, largely in terms of education and experience. The next step is to describe skill requirements and alternative approaches to preparing and upgrading the skills of individuals for these occupations. Programs of academic education and apprenticeship programs emphasizing work-based learning have often competed for the same space but the full picture reveals significant numbers of complementarities. Third, we consider the evidence on the costs and effectiveness of apprenticeship training in several countries. The final section highlights empirical and policy research results concerning the advantages of apprenticeship training for intermediate level skills, jobs, and careers.
RePEc: Research Papers in Economics, Sep 1, 2012
Can the United States Expand Apprenticeship? Lessons from Experience Can expanded apprenticeship ... more Can the United States Expand Apprenticeship? Lessons from Experience Can expanded apprenticeship reduce the concerns about the U.S. workforce? The U.S. labor market faces a rise in unemployment rates, sharp declines in the employed share of U.S. adults, extremely high youth unemployment, high wage inequality, and low or stagnant wage growth for workers below the BA degree. Currently, the primary solution advanced by policymakers-helping more people go to college-is both expensive and of limited effectiveness. Unfortunately, the U.S. policy debate is rarely informed by international experience with systems that prepare young people for careers, especially for technical occupations. Few if any cite the experience in Germany, Switzerland, and Austria in achieving high levels of income and relatively low levels of earnings inequality without a college graduation rate above the OECD average. Americans know little about the success of apprenticeship systems abroad nor are they or their political leaders aware of the growth of apprenticeship programs in Australia, England, and other advanced economies. Given the potential for expanded apprenticeship to deal effectively with skill mismatches, wage inequality, declines in manufacturing employment, and high youth unemployment, why has the U.S. failed to mount a significant apprenticeship initiative? A number of reports, including the Organization for Economic Development and Cooperation (OECD 2009) review of youth employment, have recommended expanding apprenticeship training yet failed to stimulate significant action. Apprenticeship training would seem consistent with American values of pragmatism and extensive use of the market and public-private collaborations, and a limited role for government. The paper begins by describing the existing U.S. apprenticeship system, how the system evolved, and measures of its effectiveness. The next sections examine the multiple barriers to expanding apprenticeship in the U.S., highlighting both ideological and practical obstacles. The final section describes how best to take advantage of the opportunities for expansion.
This document has been reproduced as received from the person or organization originating it. Min... more This document has been reproduced as received from the person or organization originating it. Minor changes have been made to improve reproduction quality.
The authors thank those who provided valuable assistance and insight into the development of this... more The authors thank those who provided valuable assistance and insight into the development of this report. Anthony Swoope, Dana Daugherty, Laura Ginsburg, and Karin Brown, all from the Office of Apprenticeship, and Dan Ryan, from the Office of Policy Development and Research, graciously provided information on registered apprenticeship and comments on this paper. We also wish to acknowledge those who developed the sampling methodology and fielded the Survey of Registered Apprenticeship Sponsors-Planmatics, Inc., Westat, and Decision Information Resources, Inc. Finally, we thank Charlotte Schifferes, our Federal Project Officer who provided direction to the overall study of registered apprenticeship. Her guidance and comments, both on registered apprenticeship and on the survey, have been invaluable.
Technical and vocational education and training, Dec 21, 2016
The workforce strategy of firms is increasingly important for competitiveness and for producing a... more The workforce strategy of firms is increasingly important for competitiveness and for producing at high quality and low costs. Firms must decide on the mix of skills and wages for current and future operations and on whether to train skilled workers or hire them from the open labour market. While traditional human capital theory states that firms will not finance training for general skills, modifications of the theory show training for general skills can be profitable. The modifications are compelling, since employer training for occupational skills varies widely across countries. Employers in the U.S. and France provide little occupational training while the extent of employer occupational training in Germany and Switzerland is enough to reach 55–70 % of a youth cohort. This chapter examines the factors influencing firm choices about providing one type of general training-apprenticeships. Offers of apprenticeships are common in countries where knowledge about apprenticeships is widespread, occupational standards are well developed, and the government finances related, off-the-job training. One reason is that firms in these countries recoup most or all of their investments during the apprenticeship itself, mainly because of the productive contributions to output by the apprentices. But in other contexts, such as the U.S., firms are far less likely to offer apprenticeships. South Carolina’s Apprenticeship Carolina demonstrates how marketing to individual firms and simplifying the process of hiring apprentices can lead large numbers of employers to provide occupational skills training.
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Papers by Robert I LERMAN