The State of North Carolina has a program for state-subsidized training of disadvantaged workers at its community colleges.

Employers adding at least 12 jobs can arrange for a community college to provide a program tailored to the individual firm. The college places ads for new hires and screens the applicants, the firms choose whom they want trained from the list supplied by the college, and the college provides the training (using equipment supplied by the firm). Finally, the firm selects employees from among those who successfully complete the training.

Trainees are not paid during the training period. Analyze the likely effects on wages, employment, and hours of work associated with adopting this program.