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This article investigates the net costs to employers of training apprentices. The authors give a brief background to Australia's apprenticeship system, review the relevant literature and give an outline of their methodology. Basing their analysis on 59 case studies of employers, the authors, after reporting the main results, move on to a discussion of other issues raised in the case study interviews, for example employers' perceptions of the cost of apprentice training and apprentice wages, in light of their findings. The final section of the paper provides a discussion of the possible implications of the study and offers the authors' conclusions.