New Estimates of Public Employment and Training Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program

59 Pages Posted: 1 Dec 2009

See all articles by Carolyn Heinrich

Carolyn Heinrich

Vanderbilt University; University of Texas at Austin

Peter R. Mueser

University of Missouri; IZA Institute of Labor Economics

Kenneth R. Troske

University of Kentucky - Department of Economics; University of Missouri at Columbia - Department of Economics; IZA Institute of Labor Economics

Kyung-Seong Jeon

University of Missouri at Columbia

Daver Kahvecioglu

IMPAQ International LLC

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 difference 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 the average participant in the WIA Adult program show that participating is associated with a several-hundred-dollar increase in 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 total gains. The marginal benefits of training exceed, on average, $400 in earnings each quarter three years after program entry. Dislocated Workers 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.

Keywords: nonexperimental program evaluation, workforce investment act

JEL Classification: J24, J48

Suggested Citation

Heinrich, Carolyn and Mueser, Peter R. and Troske, Kenneth R. and Jeon, Kyung-Seong and Kahvecioglu, Daver, New Estimates of Public Employment and Training Program Net Impacts: A Nonexperimental Evaluation of the Workforce Investment Act Program. IZA Discussion Paper No. 4569. Available at SSRN: https://ssrn.com/abstract=1515116

Carolyn Heinrich (Contact Author)

Vanderbilt University ( email )

2301 Vanderbilt Place
Nashville, TN 37240
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615-322-1169 (Phone)

HOME PAGE: http://peabody.vanderbilt.edu/bio/carolyn-heinrich

University of Texas at Austin ( email )

2315 Red River St.
Austin, TX 78713
United States
512-471-3200 (Phone)

HOME PAGE: http://www.utexas.edu/lbj/directory/faculty/carolyn-heinrich

Peter R. Mueser

University of Missouri ( email )

331 Professional Building
Dept. Economics and Truman School Public Affairs
Columbia, MO 65211
United States
573-882-6427 (Phone)

HOME PAGE: http://web.missouri.edu/~mueser/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kenneth R. Troske

University of Kentucky - Department of Economics ( email )

Lexington, KY 40506
United States

University of Missouri at Columbia - Department of Economics ( email )

118 Professional Building
Columbia, MO 65211
United States
573-882-4229 (Phone)
573-882-2697 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Kyung-Seong Jeon

University of Missouri at Columbia ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States
573-882-5566 (Phone)
573-882-2697 (Fax)

HOME PAGE: http://economics.missouri.edu/people/jeon.shtml

Daver Kahvecioglu

IMPAQ International LLC ( email )

1325 G Street, NW
Suite 900
Washington, DC 20005
United States

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