Ghana National Apprenticeship Program Impact Evaluation: Effort, Incentives and Returns

Innovations for Poverty Action | Ghana     
$474,033 | Stage 2: Testing at Scale | Education; Economic Growth & Trade

The problem: High youth unemployment

Youth unemployment is an acute market failure in Sub-Saharan Africa where youth account for 60 percent of the unemployed, and 72 percent of 15- to 24-year-olds live on less than $2 a day. Lack of skill is often cited as a major impediment to the employability of youth and also to the productivity of firms in developing countries. Apprenticeship training within firms is a promising avenue that utilizes the private sector to effectively deliver market-ready skills training to youth.

The solution: National apprenticeship program

The National Apprenticeship Program in Ghana will promote apprenticeship training to harness the knowledge and experience of firms and entrepreneurs to deliver market relevant skills to youth in a scalable and potentially cost-effective manner. In addition, the project incorporates an innovative and unprecedented performance-pay scheme for training providers (i.e. firms) that ties provider pay to the skill level of apprentices and their outcomes. The program is designed to provide credible evidence on (1) the efficacy of an innovative apprenticeship training program in improving employment, earnings, and other labor market outcomes for youth and (2) the additional returns associated with well-targeted and benchmarked financial and other incentives for trainers.  

The potential: Cost effectiveness, impacts, and implications

A randomized-control trial will be used to rigorously evaluate the effectiveness of the National Apprenticeship Program. The findings from the evaluation will document both the overall returns to the new training program and the efficacy of a performance-pay scheme for trainers. These findings will provide valuable insights that can assist the government of Ghana and other African governments to optimize the design or expand the scope of large-scale apprenticeship programs. 

Last updated: May 27, 2016

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