Making use of the NCVER Apprentice and Trainee Destination Survey, this paper focus on wages and the impact they have on the decision not to continue with an apprenticeship or traineeship. The broad conclusion is that increasing training wages would have little effect on completion rates. For apprentices, it is the premium associated with becoming a tradesperson that counts, not training wages. For females in non-trade traineeships, there is no relationship between wages and completion rates. It is only for males in non-trade traineeships for whom increasing training wages would make a difference to completion rates. However, for this group there is, on average, only a modest premium to completion. This finding raises the question whether traineeships in some occupations sales for example—are contributing to increased skill levels in any substantive manner.
The NCVER Apprentice and Destination Survey collected, among other things, data on reasons for not completing an apprenticeship or traineeship. This paper finds that poor working conditions or non-sympathetic bosses or workmates have an immediate effect for many. By contrast, the desire to do something different (such as study at university) or better (such as getting a better paid job) remains constant throughout the duration of the training contract.