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Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance

Author

Listed:
  • Lawrence F. Katz
  • Jonathan Roth
  • Richard Hendra
  • Kelsey Schaberg

Abstract

This paper examines the evidence from randomized evaluations of sector-focused training programs that target low-wage workers and combine up-front screening, occupational and soft-skills training, and wraparound services. The programs generate substantial and persistent earnings gains (12%–34%) following training. Theoretical mechanisms for program impacts are explored for the WorkAdvance demonstration. Earnings gains are generated by getting participants into higher-wage jobs in higher-earning industries and occupations, not just by raising employment. Training in transferable and certifiable skills (likely underprovided from poaching concerns) and reductions of employment barriers to high-wage sectors for nontraditional workers appear to play key roles.

Suggested Citation

  • Lawrence F. Katz & Jonathan Roth & Richard Hendra & Kelsey Schaberg, 2022. "Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 249-291.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/717932
    DOI: 10.1086/717932
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    Cited by:

    1. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    2. Francesco Filippucci, 2022. "What Do NEETs Need? The Effect of Combining Activation Policies and Cash Transfers," Working Papers halshs-03524083, HAL.
    3. Monica P. Bhatt & Sara B. Heller & Max Kapustin & Marianne Bertrand & Christopher Blattman, 2023. "Predicting and Preventing Gun Violence: An Experimental Evaluation of READI Chicago," NBER Working Papers 30852, National Bureau of Economic Research, Inc.
    4. Bürgisser, Reto, 2023. "Policy Responses to Technological Change in the Workplace," SocArXiv kwxn2, Center for Open Science.
    5. Maximilian Kasy & Lukas Lehner, 2023. "Employing the Unemployed of Marienthal: Evaluation of a Guaranteed Job Program," CESifo Working Paper Series 10394, CESifo.
    6. David Card & Jesse Rothstein & Moises Yi, 2023. "Industry Wage Differentials: A Firm-Based Approach," NBER Working Papers 31588, National Bureau of Economic Research, Inc.
    7. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    8. Holzer, Harry J., 2023. "Can Workforce Development Help Us Reach Full Employment?," IZA Discussion Papers 16624, Institute of Labor Economics (IZA).
    9. Diego Dabed Sitnisky & Sabrina Genz & Emilie Rademakers, 2023. "Resilience to Automation: The Role of Task Overlap for Job Finding," Working Papers 2312, Utrecht School of Economics.
    10. Driton Qehaja & Albian Krasniqi, 2021. "Who is Most Likely to Remigrate? Evidence from Kosovo’s Returned Migrants," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 98-110.
    11. Barham, Tania & Cadena, Brian C. & Turner, Patrick S., 2023. "Taking a Chance on Workers: Evidence on the Effects and Mechanisms of Subsidized Employment from an RCT," IZA Discussion Papers 16221, Institute of Labor Economics (IZA).
    12. Bentolila, Samuel & Cabrales, Antonio & Jansen, Marcel, 2023. "Does Dual Vocational Education and Training Pay Off?," IZA Discussion Papers 16688, Institute of Labor Economics (IZA).
    13. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    14. Kasy, Maximilian & Lehner, Lukas, 2023. "Employing the Unemployed of Marienthal: Evaluation of a Guaranteed Job Program," IZA Discussion Papers 16088, Institute of Labor Economics (IZA).
    15. Humlum, Anders & Munch, Jakob R. & Rasmussen, Mette, 2023. "What Works for the Unemployed? Evidence from Quasi-Random Caseworker Assignments," IZA Discussion Papers 16033, Institute of Labor Economics (IZA).
    16. Humlum, Anders & Munch, Jakob R. & Plato, Pernille, 2023. "Changing Tracks: Human Capital Investment after Loss of Ability," IZA Discussion Papers 15992, Institute of Labor Economics (IZA).
    17. Francesco Filippucci, 2022. "What Do NEETs Need? The Effect of Combining Activation Policies and Cash Transfers," PSE Working Papers halshs-03524083, HAL.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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