Improved Targeting of Social Programs: An Application to a State Job Coaching Program for Adults with Intellectual Disabilities
In a climate of flat or shrinking budgets, can programs reallocate existing resources to improve efficiency? We illustrate the potential for gains from redirecting resources using data from a state job coaching program that is designed to increase employment among adults with intellectual disabilities (ID). We model selection into the program and employment outcomes for participants and non-participants allowing for potentially heterogeneous response among observationally equivalent individuals. In our simulations, we find that state ID population employment can be increased from 10.7 percent to an upper bound of 16.7 percent by a program administrator who can allocate the job coaches to those with the most to gain. This is a 56 percent increase in the overall employment rate. While we assume that program administrators know more about individual program participants than we do, we can consider an administrator who has only the information available to the econometrician. In this case, targeting gains based only on observable characteristics would lead to 11.8 percent employment, which is an 11 percent increase in the overall employment rate. Surprisingly, a simple rule that only requires administrators to predict employment success when treated (based on observables) will achieve almost the same results.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heckman, James J. & Vytlacil, Edward J., 2000. "The relationship between treatment parameters within a latent variable framework," Economics Letters, Elsevier, vol. 66(1), pages 33-39, January.
- 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.
- James Heckman & Carolyn Heinrich & Jeffrey Smith, 2002. "The Performance of Performance Standards," NBER Working Papers 9002, National Bureau of Economic Research, Inc.
- Heckman, James J. & Heinrich, Carolyn J. & Smith, Jeffrey A., 2002. "The Performance of Performance Standards," IZA Discussion Papers 525, Institute for the Study of Labor (IZA).
- Melayne Morgan McInnes & Orgul Demet Ozturk & Suzanne McDermott & Joshua R. Mann, 2010. "Does supported employment work?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(3), pages 506-525.
- A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
- Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:51392. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.