Main model. The main model for professional and vocational training is two years of training at an upper secondary school (levels 1 and 2), plus two years of apprenticeship with an enterprise, with 50% training time and 50% value generating time. Hourly rates for apprentices amount to a percentage of the hourly rate exclusive of all supplements for newly graduated skilled workers in the enterprise. This includes any bonus that is a part of the skilled workers’ hourly pay. 1st 2nd 3rd 4th 5th 6th 7th 8th half year School 30 40 50 80 per cent COMMON PART
Main model. This study estimates difference-in-differences (DD) models to find average treatment effects of the reform on low-wage workers. For the treatment group, the analysis considers individuals whose hourly wage was below the new NMW before 1999 before being raised to comply with the new wage floor immediately after the policy change. Following previous evidence for spillover effects of the NMW (Butcher et al., 2012; Arulampalam et al., 2004) and given the fact that the sample size for this group of directly affected workers is quite small (144 individuals), workers who earned slightly above the new wage floor in 1998 before receiving a raise immediately after the reform are also considered as treated. Consistent with previous findings on the magnitude of spillover effects, only workers who earn less than £5.00 in 2000 are included.18 The control group is comprised of workers who are also paid hourly but who did not
