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Public procurement can promote apprenticeships

Tying public contracts to apprenticeship provision can boost training in small firms, but overall effects are modest. This policy brief urges selective, context-sensitive use of the strategy.

Details

Publication date
3 February 2015
Author
European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
Level of education focus
  • Vocational education and training (VET)
Thematic areas covered
  • Education-to-work transitions, education and labour market
  • Educational effectiveness and efficiency
  • Governance of education
  • Investment in education, economic impact of education
  • Quality and inclusive education for all
  • Skills development

Description

This policy brief explores how public procurement can be used as a tool to promote the creation of apprenticeships. Specifically, it examines the effect of awarding public contracts with a condition to provide apprentice training, based on Swiss data. 

The findings show that this strategy can significantly increase apprenticeship offerings among small firms (under 50 employees), with a potential rise in training engagement between 10% and 35% in relevant sectors. However, the overall impact across the economy is limited—likely only boosting apprenticeship numbers by 3–4%. 

The quality of training does not appear to decline under such incentives, but care must be taken to avoid distorting the apprenticeship market, particularly in times of low youth population or high competition for apprentices. WTO rules and economic viability concerns also limit broader implementation. 

The brief recommends selective use of this policy tool, particularly during apprenticeship shortages.

Authors

Mirjam Strupler Leiser and Stefan C. Wolter

Cite as

Mirjam Strupler Leiser and Stefan C. Wolter (2015). 'Public Procurement Can Promote Apprenticeships', EENEE Policy Brief 1, 2015

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  • 3 FEBRUARY 2015
Public procurement can promote apprenticeships