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For recent examples
and discussion of this work see Finnie et al. (2008, 2010).
Full-time enrollments in undergraduate programs in
Canada were 481,053 in 1995/96 and 654,403 in 2007/08 (CANSIM
Table 477-0013).
As of 31 October 2006 (the most recent year for which
data are available), there were 428,805 full-time students enrolled
in college programs leading to college certificates or diplomas, post-diploma
programs, collaborative degree programs, university transfer programs, and
college preliminary year courses. See CANSIM Table 477-0015.
Admittedly, this is a rather rough calculation
of completion rates. In the PSE literature, it is common to use longitudinal
data to calculate completion rates. These data allow researchers to track
individuals over time and so actual program length can be calculated from
program start and end dates. Then, a completion rate can be calculated by
dividing the number of number of completers in a cohort by the number of entrants
in that same cohort. Unfortunately, these data are not currently available.
Given the increase in the number of entrants over this 12-year period
(Table 1), coupled with the time it may take
to complete a program, readers may wonder whether the completion rates as
calculated in Table 2 underestimate the true
completion rates. The likely answer is yes, although the growth in
the number of completions is still only about one-third as large as the 120%
increase in the total number of registrations (Table 1). The raw data used to calculate the rates in Table 2 show that the number of apprenticeship completions in 1995 was 17,075,
increasing to 24,495 in 2007-an increase of about 43.5%.
See www.ellischart.ca/h.4m.2@-eng.jsp
(accessed 1 April 2010).
Boothby and Drewes (2006) estimate the weekly earnings premium
for 25-to-34-year-old males with trades (and a high school diploma) to
be about 15 percentage points higher than those with only a high
school diploma in 2000. For females, the comparable estimate is a statistically
insignificant 4.5 percentage points. However, Boothby and Drewes
are unable to compare those who completed trades with those who did not.
Multinomial
logit models were used at first, but Hausman tests rejected the "independence
of irrelevant alternatives" (IIA) assumption in a number of cases. Despite
the higher computational costs of obtaining marginal effects from multinomial
probit models compared to multinomial logit models, this study uses the former.
In practice, however, the results from the multinomial logit models were similar
to those presented below.
A fourth choice is also theoretically possible: individuals
can switch from one trade to another. Since the data are specific to the trade
in which the apprentice is registered in the 2002-2004 period, switchers
are not observed.
Due
to different apprenticeship programs in different provinces, the error terms
of individuals within provinces could be correlated. As such clustering within
provinces is controlled for in all estimates.
Other data
were considered as well. The Youth in Transition Survey (YITS) is very rich
in family background, school experience, and aptitude variables, but it is
difficult to identify those in apprenticeship programs. The 2006 Census
of Population did ask specific questions regarding apprenticeship training
and completion, and has a large sample size for analysis. Unfortunately, it
lacks the richness of background variables which have been shown to be important
controls in the PSE literature addressing college and university choice. The
Registered Apprenticeship Information System (RAIS) is useful for the fact
that it contains administrative-not survey-data and therefore is likely to
have fewer measurement errors. However, the data available through the RAIS
have limited background variables.
A limitation
of these data is that they include only long-term continuers, defined as those
who began their programs before 2000 and who had not completed their
certification by the end of the survey period in 2004. Short-term continuers
were not in the scope of the survey. Statistics Canada randomly selected the
survey respondents from the administrative data lists provided by the provincial
and territorial apprenticeship authorities. Some of these lists may not have
been up-to-date; consequently, a number of short-term continuers were contacted
and interviewed by Statistics Canada. These individuals are also included
in the analysis. As with any survey data, there is the possibility that there
exists non-random error in questionnaire responses. See Laporte and Mueller
(2010) for a brief discussion of this issue with respect to the NAS data used
here.
Including those who started their apprenticeship program at ages 14 and 15 did
not change the results.
Some 63% of those
who discontinued a program as of 2004 had returned to an apprenticeship
program by 2007 (Ménard et al. 2008). This result suggests
that one-time dropout rates should not be taken to imply discontinuation in
the long-term. These results are similar to those obtained by Finnie and Qiu
(2008), who show a similar phenomenon occurring at universities and colleges.
It should be noted that this variable
is coded to one (zero otherwise) for individuals who speak a different language
at home than at the worksite, where the worksite is the most recent job held.
This may or may not reflect the language most often spoken at the worksite
during the apprenticeship period. Given the number of apprentices who complete
their programs with one employer, coupled with the high probability of remaining
with the same employer following completion, this seems like a reasonable
assumption to make.
As mentioned
above, multinomial logit (MNL) models were initially used, since they are
computationally more efficient, but Hausman tests rejected the "independence
of irrelevant alternatives" (IIA) assumption in a number of cases. Despite
this, the results from the MNL models were very similar to the results presented
here. In addition, the models were also estimated using the apprenticeship
status during the survey frame (2002-2004). Reasonably similar results to
those presented here were found. Various other model specifications were attempted.
They are not reported here in the interest of parsimony, but all are in accord
with the results presented here.
In Appendix Text table 1, the coefficient on male is significantly negative
in the first specification but then becomes positive and significant at the 10%
level in the second specification when major trade group controls are added.
A separate regression (not shown), which excluded the hairstylist-esthetician
trade group, also yielded a positive coefficient on the male variables, again
significant at 10%.
In the NAS, North American Indian, Métis and Inuit are
grouped together under the same question and as a result the term Aboriginal
has been used in this paper.
Variables for having
an immigrant mother and/or an immigrant father were also included as variables
in the model. The rationale for this was that the NAS contains no information
on parental educational background and that many immigrant groups (e.g., Eastern
Europeans) are heavily involved in the trades. Given the heritability of education
in general, this variable is included in order to pick up this effect. The
results are generally small and/or statistically insignificant. See Appendix
Text table 1 for detailed results.
To see whether there were differences between Québec
and the rest of Canada, two separate multinomial probit models were estimated,
one with Québec and the other without Québec, but limiting the
sample to only those in construction trades (not reported here). This was
done, since the non-construction trade groups in Québec were either
underreported or not reported in the NAS. The results between the two models
were consistent with the main results presented here. An interesting difference
was that the unemployment rate in both estimates was positively and statistically
related to completion behaviour. Thus, the probability of completion could
be positively influenced by the regional unemployment rate in the construction
trades, whereas this cannot be said for the main estimates, which include
all trades but exclude Québec (see Chart 9).
It is worthwhile to note that the inclusion of trade groups changes the coefficient
on male completion from a highly significant -10.5 percentage points
to a positive 5.1 percentage points, significant at the 10%
level. Compare Models 1 and 2 in Appendix Text table 1.
This is defined for
every respondent as the annual unemployment rate in the last year of his or
her apprenticeship program by economic region (according to each person's
postal code).
When estimating these models using the apprenticeship
status over the 2002-2004 frame, there was no significant relationship
between any of the three states and the unemployment rate. Given the nature
of the 2002-2004 data, the average unemployment rate from 2002-2004 was
used, and not the unemployment rate at the time of program completion for
discontinuers and completers as has been done here.
Arguably, this could be the result of "streaming"
into these programs amongst those who may not be academically gifted. To address
this, the YAP variable was regressed on high school grades (not reported);
no evidence of streaming was found. In fact the opposite was found, as participation
in these programs increased in grades. It is quite possible, however, that
high school grades are endogenous to the simple model if the grades as reported
were tallied after the student moved into the YAP and improved his or her
grades in the new program, thus biasing the results in the simple regression.
There is no way of addressing this potential endogeneity in these data.
Unfortunately, the NAS does not ask a question
regarding the language most often spoken during the apprenticeship program;
this language may be different (especially in the case of completers and discontinuers)
from the language currently spoken on the job. See footnote 15.
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