The Tax Cuts and Jobs Act aims to stimulate increased investment in the United States, thereby creating jobs and raising workers' wages. Since President Trump signed the legislation in December, Apple, AT&T and Boeing have announced plans for large-scale expansions in the U.S., and more than 350 firms have announced bonuses or raises for their workers.
But it will take more than new plants and temporary bonuses to sustain long-term improvements in workers' earnings. The best use of these tax savings is to improve skills, and apprenticeship programs are the most cost-effective way to do this.
Moreover, firms generally favor hiring workers with experience in a field. In hard-to-fill jobs, employers prefer relevant work experience over a four-year degree, reports Harvard Business School Professor Joseph Fuller.
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