IDEAS home Printed from https://ideas.repec.org/p/nbr/nberwo/27103.html
   My bibliography  Save this paper

Do Youth Employment Programs Work? Evidence from the New Deal

Author

Listed:
  • Anna Aizer
  • Shari Eli
  • Adriana Lleras-Muney
  • Keyoung Lee

Abstract

We study the Civilian Conservation Corps (CCC) – the first and largest youth training program in the U.S. in operation between 1933 and 1942 – to provide the first comprehensive assessment of the short- and long-term effects of means-tested youth employment programs. We use digitized enrollee records from the CCC program in Colorado and New Mexico and matched these records to the 1940 Census, WWII enlistment records, Social Security Administration records, and death certificates. We find that enrollees who spent more time in CCC training grew taller, lived longer lives and had higher lifetime earnings as a result of their participation in the program. We also find modest increases in the educational attainment of the participants and increases in short term geographic mobility. In contrast, we find no evidence that their labor force participation or wages increased in the short run. To assess the internal and external validity of the results, we compare our estimates to those derived from a randomized evaluation of Job Corps, the modern version of the CCC, conducted in the 1990s. The RCT’s results show that our empirical strategy delivers estimates that are in line with the experimental estimates. Overall, we find significant long-term benefits in both longevity and earnings, suggesting short and medium-term evaluations underestimate the returns of training programs, as do those that fail to consider effects on longevity.

Suggested Citation

  • Anna Aizer & Shari Eli & Adriana Lleras-Muney & Keyoung Lee, 2020. "Do Youth Employment Programs Work? Evidence from the New Deal," NBER Working Papers 27103, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:27103
    Note: CH LS PE
    as

    Download full text from publisher

    File URL: http://www.nber.org/papers/w27103.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Will Dobbie & Hans Grönqvist & Susan Niknami & Mårten Palme & Mikael Priks, 2018. "The Intergenerational Effects of Parental Incarceration," NBER Working Papers 24186, National Bureau of Economic Research, Inc.
    2. Claudia Goldin & Lawrence F. Katz, 1999. "Education and Income in the Early 20th Century: Evidence from the Prairies," NBER Working Papers 7217, National Bureau of Economic Research, Inc.
    3. repec:hal:pseose:halshs-00840901 is not listed on IDEAS
    4. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 128(2), pages 531-580.
    5. Ran Abramitzky & Roy Mill & Santiago Pérez, 2020. "Linking individuals across historical sources: A fully automated approach," Historical Methods: A Journal of Quantitative and Interdisciplinary History, Taylor & Francis Journals, vol. 53(2), pages 94-111, April.
    6. Card, David & Krueger, Alan B, 1992. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 1-40, February.
    7. Thomas Piketty & Emmanuel Saez & Gabriel Zucman, 2018. "Distributional National Accounts: Methods and Estimates for the United States," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(2), pages 553-609.
    8. Ran Abramitzky & Leah Boustan & Katherine Eriksson & James Feigenbaum & Santiago Pérez, 2021. "Automated Linking of Historical Data," Journal of Economic Literature, American Economic Association, vol. 59(3), pages 865-918, September.
    9. Goldin, Claudia & Katz, Lawrence F., 2000. "Education and Income in the Early Twentieth Century: Evidence from the Prairies," The Journal of Economic History, Cambridge University Press, vol. 60(3), pages 782-818, September.
    10. Karen Clay & Jeff Lingwall & Melvin Stephens, Jr., 2012. "Do Schooling Laws Matter? Evidence from the Introduction of Compulsory Attendance Laws in the United States," NBER Working Papers 18477, National Bureau of Economic Research, Inc.
    11. Jonathan M.V. Davis & Sara B. Heller, 2017. "Rethinking the Benefits of Youth Employment Programs: The Heterogeneous Effects of Summer Jobs," NBER Working Papers 23443, National Bureau of Economic Research, Inc.
    12. David Card & Jochen Kluve & Andrea Weber, 2018. "What Works? A Meta Analysis of Recent Active Labor Market Program Evaluations," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 894-931.
    13. David Cutler & Angus Deaton & Adriana Lleras-Muney, 2006. "The Determinants of Mortality," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 97-120, Summer.
    14. Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    15. Adriana Kugler & Maurice Kugler & Juan Saavedra & Luis Omar Herrera Prada, 2015. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," NBER Working Papers 21607, National Bureau of Economic Research, Inc.
    16. Alexander Gelber & Adam Isen & Judd B. Kessler, 2016. "The Effects of Youth Employment: Evidence from New York City Lotteries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(1), pages 423-460.
    17. Arthi, Vellore, 2018. "“The Dust Was Long in Settling”: Human Capital and the Lasting Impact of the American Dust Bowl," The Journal of Economic History, Cambridge University Press, vol. 78(1), pages 196-230, March.
    18. Price Fishback, 2017. "How Successful Was the New Deal? The Microeconomic Impact of New Deal Spending and Lending Policies in the 1930s," Journal of Economic Literature, American Economic Association, vol. 55(4), pages 1435-1485, December.
    19. Lleras-Muney, Adriana, 2002. "Were Compulsory Attendance and Child Labor Laws Effective? An Analysis from 1915 to 1939," Journal of Law and Economics, University of Chicago Press, vol. 45(2), pages 401-435, October.
    20. Orazio Attanasio & Arlen Guarín & Carlos Medina & Costas Meghir, 2017. "Vocational Training for Disadvantaged Youth in Colombia: A Long-Term Follow-Up," American Economic Journal: Applied Economics, American Economic Association, vol. 9(2), pages 131-143, April.
    21. Claudia Goldin & Lawrence F. Katz, 2008. "Mass Secondary Schooling and the State: The Role of State Compulsion in the High School Movement," NBER Chapters, in: Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy, pages 275-310, National Bureau of Economic Research, Inc.
    22. Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-395, June.
    23. Peter Z. Schochet & John Burghardt & Sheena McConnell, 2008. "Does Job Corps Work? Impact Findings from the National Job Corps Study," American Economic Review, American Economic Association, vol. 98(5), pages 1864-1886, December.
    24. David Card, 2011. "Origins of the Unemployment Rate: The Lasting Legacy of Measurement without Theory," American Economic Review, American Economic Association, vol. 101(3), pages 552-557, May.
    25. Steckel, Richard H., 1986. "A Peculiar Population: The Nutrition, Health, and Mortality of American Slaves from Childhood to Maturity," The Journal of Economic History, Cambridge University Press, vol. 46(3), pages 721-741, September.
    26. Thomas D. Cook & William R. Shadish & Vivian C. Wong, 2008. "Three conditions under which experiments and observational studies produce comparable causal estimates: New findings from within-study comparisons," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(4), pages 724-750.
    27. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-620, September.
    28. Nathaniel Hendren & Ben Sprung-Keyser, 2019. "A Unified Welfare Analysis of Government Policies," NBER Working Papers 26144, National Bureau of Economic Research, Inc.
    29. Carlos A. Flores & Alfonso Flores-Lagunes & Arturo Gonzalez & Todd C. Neumann, 2012. "Estimating the Effects of Length of Exposure to Instruction in a Training Program: The Case of Job Corps," The Review of Economics and Statistics, MIT Press, vol. 94(1), pages 153-171, February.
    30. repec:mpr:mprres:6097 is not listed on IDEAS
    31. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    32. Adriana Kugler & Maurice Kugler & Juan E. Saavedra & Luis Omar Herrera-Prada, 2022. "Long-Term Educational Consequences of Vocational Training in Colombia: Impacts on Young Trainees and Their Relatives," Journal of Human Resources, University of Wisconsin Press, vol. 57(1), pages 178-216.
    33. Facundo Alvaredo & Lucas Chancel & Thomas Piketty & Gabriel Zucman, 2018. "Distributional National Accounts," Post-Print halshs-03342488, HAL.
    34. Mark R Rosenzweig & Christopher Udry, 2020. "External Validity in a Stochastic World: Evidence from Low-Income Countries," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 343-381.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moszoro Marian W., 2024. "The direct employment impact of public investment," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 60(1), pages 59-74, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kluve, Jochen & Ripani, Laura & Rosas-Shady, David, 2015. "Experimental Evidence on the Long Term Impacts of a Youth Training Program," IDB Publications (Working Papers) 7367, Inter-American Development Bank.
    2. Acevedo, Paloma & Cruces, Guillermo & Gertler, Paul & Martinez, Sebastian, 2020. "How vocational education made women better off but left men behind," Labour Economics, Elsevier, vol. 65(C).
    3. Jonathan M.V. Davis & Sara B. Heller, 2017. "Rethinking the Benefits of Youth Employment Programs: The Heterogeneous Effects of Summer Jobs," NBER Working Papers 23443, National Bureau of Economic Research, Inc.
    4. Lehner, Lukas & Kasy, Maximilian, 2022. "Employing the unemployed of Marienthal: Evaluation of a guaranteed job program," INET Oxford Working Papers 2022-29, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    5. Clay, Karen & Lingwall, Jeff & Jr, Melvin Stephens, 2021. "Laws, educational outcomes, and returns to schooling evidence from the first wave of U.S. state compulsory attendance laws," Labour Economics, Elsevier, vol. 68(C).
    6. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.
    7. Sophie van Huellen & Duo Qin, 2019. "Compulsory Schooling and Returns to Education: A Re-Examination," Econometrics, MDPI, vol. 7(3), pages 1-20, September.
    8. Bruno Crépon & Gerard J. van den Berg, 2016. "Active Labor Market Policies," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 521-546, October.
    9. Wendy Cunningham & Pablo Acosta & Noël Muller, 2016. "Minds and Behaviors at Work," World Bank Publications - Books, The World Bank Group, number 24659.
    10. Marios Michaelides & Peter Mueser & Jeffrey Smith, 2019. "Youth Unemployment and U.S. Job Search Assistance Policy during the Great Recession," University of Cyprus Working Papers in Economics 13-2019, University of Cyprus Department of Economics.
    11. Santiago Caicedo & Miguel Espinosa & Arthur Seibold, 2022. "Unwilling to Train?—Firm Responses to the Colombian Apprenticeship Regulation," Econometrica, Econometric Society, vol. 90(2), pages 507-550, March.
    12. Campaniello, N & Gray, R & Mastrobuoni, G, 2015. "Returns to Education and Experience in Criminal Organizations: Evidence from the Italian-American Mafia," Economics Discussion Papers 13795, University of Essex, Department of Economics.
    13. David McKenzie, 2017. "How Effective Are Active Labor Market Policies in Developing Countries? A Critical Review of Recent Evidence," The World Bank Research Observer, World Bank, vol. 32(2), pages 127-154.
    14. Matthew Fisher-Post, 2020. "Examining the Great Leveling: New Evidence on Midcentury American Inequality," PSE Working Papers hal-02876981, HAL.
    15. Anders Stenberg & Olle Westerlund, 2015. "The long-term earnings consequences of general vs. specific training of the unemployed," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-26, December.
    16. Matthew Fisher-Post, 2020. "Examining the Great Leveling: New Evidence on Midcentury American Inequality," World Inequality Lab Working Papers hal-02876981, HAL.
    17. Chen, Xuan & Flores, Carlos A. & Flores-Lagunes, Alfonso, 2015. "Going Beyond LATE: Bounding Average Treatment Effects of Job Corps Training," IZA Discussion Papers 9511, Institute of Labor Economics (IZA).
    18. Bratti, Massimiliano & Ghirelli, Corinna & Havari, Enkelejda & Santangelo, Giulia, 2018. "Vocational Training for Unemployed Youth in Latvia: Evidence from a Regression Discontinuity Design," IZA Discussion Papers 11870, Institute of Labor Economics (IZA).
    19. Karen Clay & Jeff Lingwall & Melvin Stephens, Jr., 2016. "Laws, Educational Outcomes, and Returns to Schooling: Evidence from the Full Count 1940 Census," NBER Working Papers 22855, National Bureau of Economic Research, Inc.
    20. Ozkan Eren & Serkan Ozbeklik, 2014. "Who Benefits From Job Corps? A Distributional Analysis Of An Active Labor Market Program," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(4), pages 586-611, June.

    More about this item

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:27103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/nberrus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.