From Workshop to Higher Wages: Apprenticeships Transform Youth Livelihoods in Côte d’Ivoire

In Côte d'Ivoire, most young people are not unemployed. They are working long hours in small workshops, repair shops, markets, and family businesses. The problem is not joblessness but low pay. Many earn less than the minimum wage despite being active in the labor market. A new long-term study by researchers from the World Bank's Development Impact Group, CREST-ENSAE, and Stanford University shows that a well-designed apprenticeship program can change that reality.

The research, led by Bruno Crépon, Eva Lestant, and Patrick Premand, followed young Ivorians for seven years after they were randomly selected to join a dual apprenticeship program. The results show lasting income gains and a clear reduction in working poverty.

Training That Combines Work and Class

The program targeted youth aged 18 to 24 who had basic literacy skills but limited formal education. Instead of classroom training alone, it combined two elements. Participants worked directly with master craftspersons in small and medium enterprises for up to two years. At the same time, they attended about 180 hours of classroom-based technical instruction each year.

Apprentices signed contracts and received a small monthly stipend, equal to about half the legal minimum wage, to help cover transportation and meals. They also received insurance and work equipment. Their skills were monitored throughout the program, and they could earn certification at the end.

To measure impact, the researchers used a randomized controlled trial across seven urban areas. More than 1,800 eligible youth were randomly assigned either to receive the apprenticeship or to serve as a comparison group. Surveys were conducted during the program and then two, three, and five years after it ended.

Earnings Rise and Poverty Falls

During the apprenticeship itself, participants did not earn more than others. The stipend replaced the income they might have made elsewhere. But the difference became clear after the training ended.

Two years later, participants were earning about 15 percent more than those in the control group. Three years after completion, the gap rose to nearly 20 percent. Even five years later, their earnings remained about 13 to 14 percent higher on average.

Most importantly, the gains were not limited to a few top earners. The entire earnings distribution shifted upward. The share of youth earning less than half the minimum wage fell by about 20 percent among those who completed the apprenticeship. The share earning below the minimum wage dropped by 11 percent. Fewer young people were stuck in the lowest-paying jobs.

The Surprise: Self-Employment Drives the Gains

One of the most striking findings is that the program did not increase formal wage employment. Almost all youth in the study were already working before the program began. The labor market challenge was low productivity, not a lack of jobs.

The income boost came mainly from self-employment. Youth who completed apprenticeships earned much more from their own small businesses and informal activities. Their hourly earnings increased by around 15 percent, suggesting they were becoming more productive rather than simply working longer hours.

The researchers also looked at the types of tasks the youth performed. Apprenticeship graduates were more likely to handle non-routine analytical tasks, such as reading instructions, calculating prices, and solving problems. They also did more interpersonal tasks like advising or supervising others. In simple terms, they moved into more skilled and complex work.

A Promising Model for Informal Economies

The program costs about US$1,180 per participant. Based on earnings gains observed up to five years after completion, it had not yet fully paid for itself. However, if the higher earnings continue even for several more years, the program becomes cost-effective.

The bigger message is clear. In economies where formal jobs are limited, improving the quality of informal work can make a real difference. This dual apprenticeship model did not create new wage jobs. Instead, it helped young people become better at what they were already likely to do.

For policymakers across Africa and other developing regions, the lesson is powerful. Training that combines real workplace experience with structured classroom learning can raise incomes, reduce working poverty, and deliver lasting results. In places where nearly everyone works but too few earn enough, helping youth upgrade their skills may be one of the most practical paths from training to earning.