Dual TEVT education in Chile: Why do companies train students?

Abstract

This paper analyses the costs and benefits of dual training programmes for companies in Chile. Using an online survey, we estimate that Chilean companies that participate incur net costs of US$3,200 per student per year in training; however, most companies declared to be satisfied with dual training. We simulate two scenarios under which dual training is cost effective. The first scenario simulates a subsidy equal to the net costs for each student companies receive. The second scenario assumes an increase of 25% in the productivity of apprentices, which reduces the students time in practicing and increases the productivity of the workers in charge, decreasing their time dedicated to train the students by 50%. Public policies to promote early adjustment such that students arrive at companies better prepared and can allocate more time to productive tasks should be considered to decrease the net cost of training.