Wage Regulation and Training: The Impact of State Prevailing Wage Laws on Apprenticeship

This paper analyzes the impact of the Prevailing Wage Laws (PWL) on the recruitment of apprentices, their completion and cancellation rates, and the minority share in apprenticeship programs. Statistical analysis shows that, controlling for the size of the trade, the supply of apprenticeship is higher in the PWL states. It also rises with the strength of the PWL. Secondly, apprentices complete graduation requirements at a slower rate in states without PWLs, indicating a lower efficiency in producing certified skilled workers. Finally, there is no evidence that PWLs serve as a means to exclude minorities from training for the skilled trades.