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New Estimates of Public Employment and Training Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program

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Author Info

  • Heinrich, Carolyn J.

    ()
    (University of Texas at Austin)

  • Mueser, Peter R.

    ()
    (University of Missouri-Columbia)

  • Troske, Kenneth

    ()
    (University of Kentucky)

  • Jeon, Kyung-Seong

    ()
    (University of Missouri-Columbia)

  • Kahvecioglu, Daver C.

    ()
    (Impaq International)

Abstract

This paper presents nonexperimental net impact estimates for the Adult and Dislocated Worker programs under the Workforce Investment Act (WIA), the primary federal job training program in the U.S, based on administrative data from 12 states, covering approximately 160,000 WIA participants and nearly 3 million comparison group members. The key measure of interest is the difference in average quarterly earnings or employment attributable to WIA program participation for those who participate, estimated for up to four years following entry into the program using propensity score matching methods. The results for the average participant in the WIA Adult program show that participating is associated with a several-hundred-dollar increase in quarterly earnings. Adult program participants who obtain training have lower earnings in the months during training and the year after exit than those who don’t receive training, but they catch up within 10 quarters, ultimately registering large total gains. The marginal benefits of training exceed, on average, $400 in earnings each quarter three years after program entry. Dislocated Workers experience several quarters for which earnings are depressed relative to comparison group workers after entering WIA, and although their earnings ultimately match or overtake the comparison group, the benefits they obtain are smaller than for those in the Adult program.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4569.

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Length: 59 pages
Date of creation: Nov 2009
Date of revision:
Publication status: published as "Do Public Employment and Training Programs Work?" in: IZA Journal of Labor Economics 2013, 2:6
Handle: RePEc:iza:izadps:dp4569

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Keywords: nonexperimental program evaluation; workforce investment act;

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References

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Citations

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Cited by:
  1. Fitzenberger, Bernd & Orlyanskaya, Olga & Osikominu, Aderonke & Waller, Marie, 2008. "Déjà vu? Short-term training in Germany 1980-1992 and 2000-2003," IAB Discussion Paper 200827, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Schwerdt, Guido & Messer, Dolores & Woessmann, Ludger & Wolter, Stefan C., 2012. "The impact of an adult education voucher program: Evidence from a randomized field experiment," Journal of Public Economics, Elsevier, vol. 96(7-8), pages 569-583.
  3. Lechner, Michael & Wunsch, Conny, 2011. "Sensitivity of matching-based program evaluations to the availability of control variables," CEPR Discussion Papers 8294, C.E.P.R. Discussion Papers.
  4. Adrian Fleissig, 2014. "Return on Investment from Training Programs and Intensive Services," Atlantic Economic Journal, International Atlantic Economic Society, vol. 42(1), pages 39-51, March.
  5. Holzer, Harry J., 2012. "Raising Job Quality and Worker Skills in the US: Creating More Effective Education and Workforce Development Systems in States," IZA Policy Papers 42, Institute for the Study of Labor (IZA).
  6. Jones, Stephen, 2012. "The Effectiveness of Training for Displaced Workers with Long Prior Job Tenure," CLSSRN working papers clsrn_admin-2012-3, Vancouver School of Economics, revised 29 Jan 2012.
  7. Andersson, Fredrik & Holzer, Harry J. & Lane, Julia & Rosenblum, David & Smith, Jeffrey A., 2013. "Does Federally-Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," IZA Discussion Papers 7621, Institute for the Study of Labor (IZA).
  8. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2012. "The Effectiveness of Public Sponsored Training Revisited: The Importance of Data and Methodological Choices," NRN working papers 2012-09, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
  9. Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2012. "Occupational Mobility and the Returns to Training," Working Papers tecipa-444, University of Toronto, Department of Economics.
  10. Schwerdt, Guido & Messer, Dolores & Wolter, Stefan C. & Wößmann, Ludger, 2010. "Labor Market Effects of Adult Education Vouchers: Evidence from a Randomized Field Experiment," Munich Reprints in Economics 19902, University of Munich, Department of Economics.
  11. Dolton, Peter & Smith, Jeffrey A., 2011. "The Impact of the UK New Deal for Lone Parents on Benefit Receipt," IZA Discussion Papers 5491, Institute for the Study of Labor (IZA).
  12. Singer, Christine & Toomet, Ott-Siim, 2013. "On government-subsidized training programs for older workers," IAB Discussion Paper 201321, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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