A model is estimated in which the type of training undertaken is deter
mined by the predicted lifetime earnings for each type of training, pe
rsonal factors and educational attainment. Lifetime earnings has a pos
itive and significant effect on the allocation of individuals across t
raining types. The impact is variable: a 10% rise in (own) lifetime ea
rnings raises the fraction undertaking off-the-job training by up to 0
.059 but the fraction undertaking no-training by as little as 0.017. I
f the government were to pay an annual grant of $3000 to apprentices f
or 3 years, the proportion of apprentices in the sample would increase
from 28% to 30%.