Employment Retention and Advancement (ERA) Demonstration Delivery, Take-Up, and Outcomes of In-Work Training Support for Lone Parents

Abstract

This report presents new findings from Britain’s Employment Retention and Advancement (ERA) demonstration programme, launched in autumn 2003. ERA was designed to test the effectiveness of a programme to improve the labour market prospects of low-paid workers and long-term unemployed people. One of ERA’s key goals was to encourage human capital development by supporting and incentivising training among low-wage workers. The programme provided personal adviser support and financial incentives for completing training and working full-time.

This report looks at the delivery, take-up, and outcomes of ERA’s training support and incentives. A central question is whether intensive adviser support and financial incentives encourage training beyond what would normally occur. Because training encompasses a broad range of activities, this report details the kinds of training courses people took in ERA. Finally, it is important to assess whether training leads to better labour market outcomes. Some programmes have increased training with no corresponding effect on earnings. One hypothesis to explain these results is that the training might not have been in courses relevant to advancement. Therefore, this study examines the occupational relevance of the courses taken.

Keywords: Job training, employment retention and advancement, welfare to work, mixed methods, random assignment evaluation

JEL Classification: I38, J62, J60, P46, I00