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Vouchers in U.S. vocational training programs : an overview of what we have learned

Author

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  • Barnow, Burt S.

    (University of Baltimore, Institute for Policy Studies)

Abstract

"An important decision that must be made in operating training programs targeted toward disadvantaged workers is whether the programs dictate the specific training programs that participants will take or they issue vouchers that permit participants to select their specific training programs. Over the past 40 years, the United States has operated a number of targeted training programs, some of which have used vouchers and voucher-like instruments to let participants determine their programs. This paper reviews the evidence from the U.S. experience. Although vouchers permit maximum consumer choice and reduce the need for government oversight, vouchers may not lead to optimal results due to imperfect information and a divergence between government and participant goals. Although vouchers are generally popular with participants, evaluations of U.S. training programs for poor workers and dislocated (displaced) workers show mixed results: many studies indicate that the impact of programs with vouchers is often lower than for programs without vouchers for poor participants, and the evidence is mixed for dislocated workers. When vouchers are used, appropriate counseling and assessment as well as the provision of provider performance information can improve the results." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Barnow, Burt S., 2009. "Vouchers in U.S. vocational training programs : an overview of what we have learned," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 42(1), pages 71-84.
    • Handle: RePEc:iab:iabzaf:v:42:i:1:p:071-084
    DOI: 10.1007/s12651-009-0007-9
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    Cited by:

    1. Doerr, Annabelle & Strittmatter, Anthony, 2014. "Assignment Mechanisms, Selection Criteria, and the Effectiveness of Training Programs," Economics Working Paper Series 1421, University of St. Gallen, School of Economics and Political Science, revised May 2017.
    2. Paul, Marie & Dörr, Annabelle & Fitzenberger, Bernd & Kruppe, Thomas & Strittmatter, Anthony, 2013. "The Award of a Training Voucher and Labor Market Outcomes," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79918, Verein für Socialpolitik / German Economic Association.
    3. Annabelle Doerr & Bernd Fitzenberger & Thomas Kruppe & Marie Paul & Anthony Strittmatter, 2017. "Employment and Earnings Effects of Awarding Training Vouchers in Germany," ILR Review, Cornell University, ILR School, vol. 70(3), pages 767-812, May.
    4. Anthony Strittmatter, 2016. "What effect do vocational training vouchers have on the unemployed?," IZA World of Labor, Institute of Labor Economics (IZA), pages 316-316, November.

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