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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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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 increment 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 participants in the WIA Adult program show that participating is associated with a several-hundred-dollar increase in average 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 gains. The marginal benefits of training exceed, on average, $400 in earnings each quarter three years after program entry. Participants in the Dislocated Worker program 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 Department of Economics, University of Missouri in its series Working Papers with number 1003.

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Length: 61 pages
Date of creation: 15 Mar 2010
Date of revision:
Handle: RePEc:umc:wpaper:1003

Note: Update of WP0901
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Keywords: Job Training; Program Evaluation; Workforce Investment Act; Matching;

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References

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  1. Dan A. Black & Jeffrey A. Smith & Mark C. Berger & Brett J. Noel, 2003. "Is the Threat of Reemployment Services More Effective Than the Services Themselves? Evidence from Random Assignment in the UI System," American Economic Review, American Economic Association, vol. 93(4), pages 1313-1327, September.
  2. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
  3. Peter R. Mueser & Kyung-Seong Jeon & Andrew Dyke & Carolyn J. Heinrich & Kenneth R. Troske, 2006. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," Working Papers 0602, Department of Economics, University of Missouri.
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  15. David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations – A Meta-analysis," Ruhr Economic Papers 0086, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  16. Mueser, Peter R. & Troske, Kenneth & Gorislavsky, Alexey, 2003. "Using State Administrative Data to Measure Program Performance," IZA Discussion Papers 786, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Martin Biewen & Bernd Fitzenberger & Aderonke Osikominu & Marie Paul, 2012. "The effectiveness of public sponsored training revisited: The importance of data and methodological choices," ECON - Working Papers 091, Department of Economics - University of Zurich.
  2. 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].
  3. Michael Lechner & Conny Wunsch, 2011. "Sensitivity of Matching-Based Program Evaluations to the Availability of Control Variables," CESifo Working Paper Series 3381, CESifo Group Munich.
  4. Gueorgui Kambourov & Iourii Manovskii & Miana Plesca, 2012. "Occupational Mobility and the Returns to Training," Working Papers tecipa-444, University of Toronto, Department of Economics.
  5. Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2013. "Does Federally-Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," NBER Working Papers 19446, National Bureau of Economic Research, Inc.
  6. 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).
  7. Osikominu, Aderonke & Orlyanskaya, Olga & Fitzenberger, Bernd & Waller, Marie, 2008. "Déjà Vu? Short-Term Training in Germany 1980-1992 and 2000-2003," ZEW Discussion Papers 08-038, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Dolores Messer & Guido Schwerdt & Ludger Woessmann & Stefan C. Wolter, 2013. "Labor Market Effects of Adult Education Vouchers: Evidence from a Randomized Field Experiment," Economics of Education Working Paper Series 0094, University of Zurich, Institute for Strategy and Business Economics (ISU).
  9. 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).
  10. 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.
  11. 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.

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