We evaluate the effect of the Apprenticeship Bonus, an employment subsidy programme, on early dropout of apprenticeship. Eligibility to the programme is restricted to school leavers who have actively searched for apprenticeship training to start immediately after leaving school, but were...

We extend the benchmark model of Aghion and Blanchard (1994), assuming two segments of the emerging private sector that differ in workers' productivity. We look at the paths of employment, wages, taxes, labor costs and profits during and after the transition, up until the shock is fully...