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The Effect of Creaming on Placement Rates under the Job Training Partnership Act

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  • Kathryn H. Anderson
  • Richard V. Burkhauser
  • Jennie E. Raymond

Abstract

The authors investigate the degree to which “creaming†—nonrandom selection of participants—in Job Training Partnership Act (JTPA) Title II-A programs is responsible for the high placement rates in those programs. An analysis of data from Tennessee JTPA agencies, in conjunction with Current Population Survey data, shows that creaming does take place, especially through non-selection of those handicapped by poor education or poor health. The extent of creaming, however, is not as large as some critics have suggested: the 71 % placement rate in Tennessee would fall only to about 62% if participants were randomly selected from among the economically disadvantaged population eligible for training. In contrast, targeting only high school dropouts for training—which would have the virtue of serving a group with particularly large barriers to employment—would reduce success rates by nearly one-quarter.

Suggested Citation

  • Kathryn H. Anderson & Richard V. Burkhauser & Jennie E. Raymond, 1993. "The Effect of Creaming on Placement Rates under the Job Training Partnership Act," ILR Review, Cornell University, ILR School, vol. 46(4), pages 613-624, July.
  • Handle: RePEc:sae:ilrrev:v:46:y:1993:i:4:p:613-624
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    Cited by:

    1. James J. Heckman & Jeffrey A. Smith & Christopher Taber, 1996. "What Do Bureaucrats Do? The Effects of Performance Standards and Bureaucratic Preferences on Acceptance into the JTPA Program," NBER Working Papers 5535, National Bureau of Economic Research, Inc.
    2. Courty, Pascal & Kim, Do Han & Marschke, Gerald, 2011. "Curbing cream-skimming: Evidence on enrolment incentives," Labour Economics, Elsevier, vol. 18(5), pages 643-655, October.
    3. Pascal Courty & Gerald Marschke, 2004. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 23-56, January.
    4. James J. Heckman & Jeffrey A. Smith, 2004. "The Determinants of Participation in a Social Program: Evidence from a Prototypical Job Training Program," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 243-298, April.
    5. Garicano, Luis & Palacios-Huerta, Ignacio, 2005. "Sabotage in Tournaments: Making the Beautiful Game a Bit Less Beautiful," CEPR Discussion Papers 5231, C.E.P.R. Discussion Papers.
    6. James J. Heckman & Carolyn Heinrich & Jeffrey Smith, 2002. "The Performance of Performance Standards," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 778-811.
    7. Pascal Courty & Gerald Marschke, 2003. "Making Government Accountable: Lessons from a Federal Job Training Program," The Centre for Market and Public Organisation 03/083, Department of Economics, University of Bristol, UK.
    8. Bénédicte Vidaillet, 2016. "Envy, Schadenfreude and evaluation : understanding the strange growing of individual performance appraisal," Post-Print hal-01366994, HAL.
    9. Robert Gibbons, 1998. "Incentives in Organizations," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 115-132, Fall.
    10. Michael Ian Cragg, 1995. "Performance Incentives in Government Subcontracting: Evidence from the Job Training Partnership Act (JTPA)," Labor and Demography 9507001, EconWPA.
    11. James J. Heckman & Carolyn J. Heinrich & Pascal Courty & Gerald Marschke & Jeffrey Smith (ed.), 2011. "The Performance of Performance Standards," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number tpps, November.
    12. Luis Garicano & Richard A. Posner, 2005. "Intelligence Failures: An Organizational Economics Perspective," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 151-170, Fall.
    13. Robert Gibbons, 1996. "Incentives and Careers in Organizations," NBER Working Papers 5705, National Bureau of Economic Research, Inc.

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