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Bounds on Average and Quantile Treatment Effects of Job Corps Training on Wages

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  • Blanco, German

    ()
    (Binghamton University, New York)

  • Flores, Carlos A.

    ()
    (University of Miami)

  • Flores-Lagunes, Alfonso

    ()
    (Binghamton University, New York)

Abstract

We assess the effectiveness of Job Corps (JC), the largest job training program targeting disadvantaged youth in the United States, by constructing nonparametric bounds for the average and quantile treatment effects of the program on wages. Our preferred estimates point toward convincing evidence of positive effects of JC on wages both at the mean and throughout the wage distribution. For the different demographic groups analyzed, the statistically significant estimated average effects are bounded between 4.6 and 12 percent, while the quantile treatment effects are bounded between 2.7 and 11.7 percent. Furthermore, we find that the program's effect on wages varies across quantiles and groups. Blacks likely experience larger impacts in the lower part of their wage distribution, while Whites likely experience larger impacts in the upper part of their distribution. Non-Hispanic Females show statistically significant impacts in the upper part of their distribution but not in the lower part.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6065.

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Length: 57 pages
Date of creation: Oct 2011
Date of revision:
Publication status: published in: Journal of Human Resources, 2013, 48 (3), 659-701
Handle: RePEc:iza:izadps:dp6065

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Keywords: wages; bounds; quantile treatment effects; training programs;

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  1. Blundell, Richard William & Gosling, Amanda & Ichimura, Hidehiko & Meghir, Costas, 2004. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CEPR Discussion Papers 4705, C.E.P.R. Discussion Papers.
  2. Charles F. Manski & John V. Pepper, 1998. "Monotone Instrumental Variables with an Application to the Returns to Schooling," NBER Technical Working Papers 0224, National Bureau of Economic Research, Inc.
  3. Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
  4. Alfonso Flores-Lagunes & Arturo Gonzalez & Todd Neumann, 2010. "Learning But Not Earning? The Impact Of Job Corps Training On Hispanic Youth," Economic Inquiry, Western Economic Association International, vol. 48(3), pages 651-667, 07.
  5. Michael Lechner & Blaise Melly, 2010. "Partial Idendification of Wage Effects of Training Programs," Working Papers 2010-8, Brown University, Department of Economics.
  6. Carlos A. Flores & Alfonso Flores-Lagunes, 2010. "Nonparametric Partial Identification of Causal Net and Mechanism Average Treatment Effects," Working Papers 2010-25, University of Miami, Department of Economics.
  7. Zhang, Junni L. & Rubin, Donald B. & Mealli, Fabrizia, 2009. "Likelihood-Based Analysis of Causal Effects of Job-Training Programs Using Principal Stratification," Journal of the American Statistical Association, American Statistical Association, vol. 104(485), pages 166-176.
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Cited by:
  1. Krug, Gerhard & Stephan, Gesine, 2013. "Is the Contracting-Out of Intensive Placement Services More Effective than Provision by the PES? Evidence from a Randomized Field Experiment," IZA Discussion Papers 7403, Institute for the Study of Labor (IZA).

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