What Works In Job Training: A Synthesis of the Evidence - July 22, 2014
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What Works In Job Training: A Synthesis of the Evidence July 22, 2014 u.s. department of labor u.s. department of commerce u.s. department of education u.s. department of health and human services
What Works In Job Training: A Synthesis of the Evidence
Contents
Executive Summary 1
1. Introduction 3
2. “What Works” for Adults 4
Post-secondary Education and Industry-recognized Credentials 4
Flexible and Innovative Skill-building Training Curricula and Strategies 5
Work-Based Training 7
Employer/Industry Engagement 9
Labor Market Information and Guidance 11
Cross-system Coordination and Integrated Education, Training, and Work Supports 12
3. “What Works” for Youth 16
Career Preparation and Career Education 16
Work Experience and Summer Programs 17
Work- and Industry-based Education, Training and Career Academies 17
Comprehensive and Integrated Models 19
4. Gaps in Evidence and Action Plan to Fill the Gaps 21
1. E
xpand and improve access to labor market, occupational, and skills data 22
and continue basic research on labor markets and employment.
2. Initiate pilots and demonstrations to test innovative strategies at reduced cost. 24
3. Improve systems and strategies to share evidence reviews. 24
Appendix A 26
Appendix B 27
iWhat Works In Job Training: approach that is right for all workers,
having access to accurate and up-to-date
A Synthesis of the Evidence labor market data, as well as information
and guidance about career and training
Executive Summary opportunities, can help individuals make
better decisions about training and
On January 30, 2014, President Barack Obama lead to better outcomes, and can help
directed Vice President Joseph Biden to lead a policymakers and program administrators
Government-wide review of Federal programs plan accordingly; and
in the workforce and training system to ensure • Lower-skilled individuals and those
they are designed to equip the nation’s workers with multiple barriers to employment
with skills matching the needs of employers benefit from coordinated strategies across
looking to hire. The review culminated in an systems, and flexible, innovative training
action plan to make the system more job-driven, strategies that integrate the education,
integrated, and effective. training, and support services they need to
prepare for and succeed in the workplace.
To inform the development of the action plan,
agencies were asked to summarize the evidence
on adult and youth job training strategies and What works for youth?
programs to “…determine what information The evidence on effective employment
is lacking and identify future research and and training-related programs for youth,
evaluation that can be undertaken to ensure the particularly the most disadvantaged youth,
Federal programs invest in effective practices.” is less extensive than for adults, and there
This document, prepared by the Secretaries of are fewer positive findings from evaluations.
Labor, Commerce, Education and Health and Nonetheless, some important themes emerge
Human Services, with input from several other from existing evidence on job training for youth,
Federal agencies and staff, presents the results some of which are consistent with findings from
of that evidence summary. research on adults:
What works for adults? • arly exposure to a range of career
E
• A post-secondary education, particularly a and higher education information and
degree or industry-recognized credential opportunities is associated with better
related to jobs in demand, is the most post-secondary education outcomes.
important determinant of differences in • Work experience for youth still in school,
workers’ lifetime earnings and incomes; including paid summer jobs, has some
• Flexible and innovative training and post- important results in terms of educational
secondary education approaches, such as outcomes, particularly if job skills and
contextual learning and bridge programs education are combined.
are expanding and show promise; • Occupation- and industry-based training
• The more closely training is related to programs, including Career Academies,
a real job or occupation, the better the show some promising employment
results for training participants; outcomes for youth. Work-based learning,
• Employer and industry engagement such as paid internships, cooperative
strategies may improve the alignment of education, and some transitional jobs
training to employer needs; programs suggest that low-income,
• Since there is no single job training economically disadvantaged youth are
1successful in programs where they receive • xpand analysis on the long-term impacts
E
wages. Strategies that allow high school of training approaches that have shown
students to accelerate their transition to to have strong short-term impacts and
college or start preparing for a career early appear to be the most job-driven, such
can also improve youth outcomes. as industry-recognized certificates,
• Youth disconnected from work and apprenticeships, and career pathways;
school, including those who also have • Disaggregate subgroup impacts to better
serious disadvantages such as early-child understand how promising approaches
bearing, homelessness, or involvement can help particular groups of workers and
with the criminal justice system, have the future workers, including the long-term
most difficult challenges succeeding in unemployed, dislocated workers, low
adulthood, but there is some evidence that skilled workers, persons with disabilities,
they can benefit from comprehensive and youth, women, and those with barriers to
integrated models that combine education, employment;
occupational skills, and support services.1 • Expand analysis of program components
to examine the effect of key components
Next Steps: Expand what works and fill of program models and untangle what
the gaps in evidence specific strategies or mix of strategies are
Moving forward, it is important to encourage most effective;
the adoption of job training approaches • Replicate and evaluate promising models
that have evidence of effectiveness, and to and approaches in different settings to
continue to expand the evidence base on provide more useful information about
what works. This can be done by taking the how communities and agencies can adopt
following actions: or adapt proven strategies;
• Measure and evaluate outcomes of
employer engagement and public/private
MDRC (2013). Building Better Programs for Disconnected Youth.
footnote 1
training partnerships; and
New York: NY: MDRC.
• Expand and improve access to essential
labor market and administrative data and
evaluate ways that consumers, program
administrators, and policymakers access
and use labor market information.
21. Introduction supports (e.g., job search assistance), and
other important strategies, such as employer/
On January 30, 2014, President Barack Obama industry engagement and cross-agency/system
signed a memorandum directing collaboration.
Vice President Joseph Biden to lead a
Government-wide review of Federal programs The effective or promising job training strategies
in the workforce and training system to ensure and programs in this synthesis were identified
these programs are designed to equip the through literature reviews, structured evidence
Nation’s workers with skills matching the reviews of evaluations conducted for Federal
needs of employers looking to hire.2 This Clearinghouses, and research summaries.3 The
review, which involved the Secretaries of Labor, synthesis is as transparent as possible about the
Commerce, Education, Health and Human quality and quantity of evidence that supports
Services, and staff from other Federal agencies, each program or strategy, recognizing that
culminated in an action plan to make the evidence standards vary across disciplines and
workforce and training system more job-driven, across Federal agencies. For more information
integrated, and effective. on the types of evidence used in this review,
please see the Appendix.
To inform the development of the action
plan, agencies were tasked with summarizing This report is organized as follows: the first
“existing evidence of the job training strategies section synthesizes evidence on what works
that most effectively achieve the goals of this for adults to improve their employment and
memorandum, determine what information educational outcomes, while the second section
is lacking, and identify future research and discusses what works for youth. The third
evaluation that can be undertaken to ensure section summarizes the main findings based on
the Federal programs invest in effective evidence to date, highlights gaps in evidence,
practices.” This document presents that and suggests directions for future research.
summary: a synthesis of evidence on adult and Summaries and study reviews profiled in Federal clearinghouses,
footnote 3
like the Department of Education’s What Works Clearinghouse (WWC),
youth job training strategies, training-related the Department of Health and Human Services’ Findyouthinfo.gov,
and the Department of Labor’s Clearinghouse for Labor Evaluation
Presidential Memorandum -- Job-Driven Training for Workers.
footnote 2 and Research (CLEAR) are important resources. These clearinghouses
The White House. Retrieved from http://www.whitehouse.gov/the- review evaluation studies and findings and use transparent criteria for
press-office/2014/01/30/presidential-memorandum-job-driven-train- determining the quality of evidence produced.
ing-workers
32. “What Works” for Adults method, sample, and time frame of the analysis.
Recent studies suggest these returns may be
Findings from research and evaluations on even higher, averaging between 10 to 15 percent
job training for adults suggest several themes per year.4
relevant to the Job-Driven Training Initiative:
Post-secondary training that takes less than
• post-secondary education, particularly a
A two years (e.g., certificate programs) also has
degree or industry-recognized credential been shown to have valuable returns. In 2012,
related to jobs in demand, is the most individuals with professional certifications or
important determinant of differences in licenses earned more than those without these
workers’ lifetime earnings and incomes; credentials at each level of education below a
• Flexible and innovative training and post- bachelor’s degree.5 Post-secondary training
secondary education approaches, such as programs that result in credentials related to
contextual learning and bridge programs technology, state licensure, and in-demand
are expanding and show promise; occupations are associated with particularly
• The more closely training is related to positive outcomes.6 For example, one study
a real job or occupation, the better the found that earnings were higher for people
results for training participants; with sub-baccalaureate degrees in business,
• Employer and industry engagement computer/technical, and health fields
strategies may improve the alignment of compared to those with degrees in service
training to employer needs; and education fields.7
• Since there is no single job training
approach that is right for all workers, To date, studies on credentials have mainly used
having access to accurate and up-to-date non-experimental evaluation designs. A number
labor market data, as well as information of experimental demonstrations currently
and guidance about career and training in the field, including the Health Profession
opportunities, can help individuals make Opportunity Grants, are using random
better decisions about training and assignment designs and the findings will help
lead to better outcomes, and can help to further the evidence base on the impact of
policymakers and program administrators industry-driven training and credentials.
plan accordingly; and
• Lower-skilled individuals and those Goldin, C. & Katz, L. F. (2008). The Race between Education and
footnote 4
with multiple barriers to employment Technology. The Belknap Press. Cambridge, MA.
5
Ewert, S. & Kominski, R. (2014). Measuring Alternative Educational
benefit from coordinated strategies across Credentials: 2012. Washington, DC: U.S. Census Bureau.
systems, and flexible, innovative training Holzer, H. J. & Lerman, R. I. (2009). The Future of Middle-Skill
6
Jobs. Brookings Institution. http://www.brookings.edu/~/media/
strategies that integrate the education, research/files/papers/2009/2/middle%20skill%20jobs%20hol-
training, and support services they need to zer/02_middle_skill_jobs_holzer.pdf; and Jacobson, L. S., LaLonde,
R. J., & Sullivan, D.G. (2005). Estimating the Returns to Community
prepare for and succeed in the workplace. College Schooling for Displaced Workers. Journal of Econometrics,
125(1-2). Retrieved from http://repec.iza.org/dp1017.pdf; and Jepsen,
C., Troske, K., & Paul Coomes. 2009. The Labor-Market Returns to
Post-secondary Education and Industry- Community College Degrees, Diplomas, and Certificates. University of
recognized Credentials Kentucky Center for Poverty
Research Discussion Paper Number 2009-08. Retrieved from http://
Much research confirms the value of a college www.ukcpr.org/Publications/DP2009-08.pdf.
degree (Associates, Bachelors, or Graduate). In Crissey, S. & Bauman, K. (2010). Between a Diploma and a Bachelor’s
7
Degree: The Effects of Sub-Baccalaureate Postsecondary Educational
general, studies have found that one additional Attainment and Field of Training on Earnings. Presented at the Annual
year of schooling leads to earnings gains of Meeting of the Population Association of America, Dallas, TX, April
2010. Retrieved from http://www.edweek.org/media/censusdiplo-
between six to nine percent, depending on the mas-34jobs.pdf.
4Flexible and Innovative Skill-building establishing coursework aligned with career
Training Curricula and Strategies ladders, or pathways. Career ladders provide
Training institutions, especially community a sequence of training steps that lead to
colleges, are developing new ways to structure progressively more advanced jobs in a single
and deliver training, not only for traditional career or occupation. To create these pathways,
students, but also for non-traditional students. community colleges typically re-map existing
Some of these approaches include providing courses into job-specific clusters and create
options for accelerating coursework; integrating new industry-recognized credentials for each.
work-based and classroom-based instruction; Students can stack these credentials, building
and linking courses and requirements in up their qualifications to move along a career
ways that accumulate skills along a specific pathway or up a career ladder. Formal career
career pathway, facilitate the persistence and ladders are typically created in partnership
completion of programs, and lead to industry- with local employers. In addition to helping
recognized credentials and jobs. Although design curricula for these programs, employers
there is limited evaluation evidence on the may provide instruction; sponsor work study,
effectiveness of these emerging instructional internship, or apprenticeship positions;
models to-date, the face validity of several provide funds for training, including state
new strategies seems especially promising of the art equipment; and recruit students.
for students who also are working, workers Career pathways studies are being developed
seeking to retrain for a new occupation, and for a number of different sectors (e.g., health,
low-skilled workers with little prior post- advanced manufacturing), many of which
secondary education experience. Several offer a range of tracks that enable employed
emerging skill-building training approaches and unemployed workers of different
appear particularly promising: (1) curriculum education levels and different levels of
re-design, (2) contextual and bridge programs, experience to enroll.9
and (3) cohort models.
At this time, there are only preliminary
Curriculum Re-design. evaluations of career pathways training.
Some of the innovative curriculum designs However, several randomized control trials
being adopted include: (1) modularized are underway, including the HHS-ACF Health
curricula providing job-specific training in Profession Opportunity Grant evaluation and
smaller increments than typical certificate or the Innovative Strategies for Improving Self-
AA programs; (2) flexible class scheduling to Sufficiency (ISIS) demonstration, which are
facilitate combining school and work; (3) varying formally testing several models.
approaches to compressing material to reduce
time in class and accelerate progress, such as Contextual and Bridge Programs.
self-paced instruction and distance learning; and Another promising skill-building training
(4) arranging for multiple entry and exit points to approach for adults involves coordinating
make it easier to leave and resume schooling as academic and occupational instruction by
work and family demands require.8 providing basic educational remediation
concurrently with, rather than as a prerequisite
Another approach many community colleges for, college-level courses. These “bridge”
are taking to engage and retain adult students programs, used in a number of community
in post-secondary occupational training is colleges, are typically one or two-semester
footnote 8
Martinson, K. & Holcomb, P. (2007). Innovative Employment footnote 9
Fein, David J. (2012). Career Pathways as a Framework for Pro-
Approaches and Programs for Low-Income Families. Urban Institute. Re- gram Design and Evaluation: A Working Paper from the Innovative Strat-
trieved from http://www.urban.org/UploadedPDF/411467_employment.pdf. egies for Increasing Self-Sufficiency (ISIS) Project. Abt Associates, Inc.
5interventions that aim to accelerate students’ the program, which has an interdisciplinary
acquisition of basic academic skills in a curriculum for GED preparation that integrates
supportive learning environment. Sometimes material from the health care and business
instruction is delivered in the context of an fields, spend more time in class over the course
industry or occupation. of a semester than is typical for GED programs
and also receive intensive advising. Preliminary
One contextualized Bridge approach that results from an impact evaluation showed that
appears promising is the Integrated Basic students in this program persisted in college at a
Education and Skills Training (I-BEST) program higher rate than students in a regular GED Prep
developed by the Washington State Board for course: 12 percent of Bridge students enrolled
Community and Technical Colleges. In I-BEST, in a CUNY community college the first semester
a basic skills instructor and an occupational after completing the course and continued into
instructor co-teach college level courses the second semester, compared with only 3
in fields such as health care and advanced percent of GED Prep students.12
manufacturing. A non-experimental study
found that I-BEST participants were more likely Future evaluations should continue to test
to earn college credit, attain a credential, and variations of the bridge and integrated
demonstrate basic skills gains on a standardized contextual instructional models, such as
assessment than a comparison group of programs connected to specific occupations
basic skills students who took a college-level and industries and those that integrate
occupational course on their own. However, supplemental services that help students at
participation in I-BEST had no impact on the school balance childrearing, employment, and
probability of persistence into the next year, real other extracurricular responsibilities.
wages, or the average number of hours worked
after leaving the program.10 This supports the Cohort Models.
findings of other evaluations, which have found Qualitative research by the National Center for
that Bridge programs can increase completion the Study of Adult Learning and Literacy found
of remedial skills courses, but do not appear that belonging to a cohort, or a tightly knit,
to have an effect on outcomes following the reliable group of student peers with a common
program, such as persisting in other college purpose, contributes to developing skills and
courses and programs.11 persisting in courses and programs.13 Similarly,
a report on the completion rates and job
More student support and advising may placement rates of participants in Tennessee’s
improve the effectiveness of bridge programs, Technology Centers indicates that intensive
evidence from a recent evaluation of LaGuardia cohort-based and job-driven/career-driven
Community College of the City University postsecondary education and training can lead to
of New York (CUNY) GED Bridge to Health significant improvements in completion rates and
and Business program suggests. Students in job placement.14
The I-BEST program is one of 9 career pathways programs cur-
footnote 10
rently under evaluation by the Administration for Children and Families
footnote 12
Martin, V. & Broadus, J. (2013). Enhancing GED Instruction to
as part of the Innovative Strategies for Increasing Self- Sufficiency (ISIS) Prepare Students for College and Careers: Early Success in LaGuardia
evaluation. Community College’s Bridge to Health and Business program. MDRC.
11
Fein, David J. and E. Beecroft (2006). College as a job advancement Retrieved from http://www.mdrc.org/sites/default/files/Enhancing_
strategy: Final report on the New Visions Self-Sufficiency and Lifelong GED_Instruction_brief.pdf.
Learning Project. Abt Associates Inc. Retrieved from http://www.
13
Drago-Severson, E., Helsing, D., Kegan, R., Popp, N., Broderick, M., &
abtassociates.com/reports/new_visions_final.pdf; and Scrivener et al. Portnow, K. (2001). The Power of a Cohort and of Collaborative Groups.
(2008). A Good Start: Two-Year Effects of a Freshmen Learning Com- Focus on Basics (5), Issue B: 15-22.
munity Program at Kingsborough Community College. Retrieved from
14
Hoops, J. (2010). A Working Model for Student Success: The Ten-
http://www.mdrc.org/sites/default/files/A%20Good%20Start.pdf. nessee Technology Centers. Complete College America. Retrieved from
http://files.eric.ed.gov/full text/ED536826.pdf.
6Work-Based Training and Education In addition to job training, there is some
Most training in the U.S. occurs at the workplace: evidence in the U.S. and elsewhere that firms
over a quarter of all workers report that they and workers benefit from education and literacy
receive some formal job training from their programs offered at work. For example, The
employers, and about 70 percent of firms indicate Program for the International Assessment of
they offer some type of training to employees, Adult Competencies’ Survey of Adult Skills
mainly management and mid-level workers.15 found that the participation rate in job-related
education and training in the United States
Research clearly finds that workers and, to a in 2012 ranged from 21 percent for adults
greater extent, their employers, benefit from with the lowest literacy skills to 69 percent for
workplace training.16 For employers, who are adults with the highest literacy skills.20 A quasi-
more likely to provide firm-specific training experimental evaluation of a workplace literacy
(e.g., training on company procedures, software, program for low-skilled manufacturing workers
policies, equipment) than general training that found that average wage growth for participants
could be valuable in the labor market outside was higher than that for non-participants and
the firm (e.g., training on management or sales that participants were more likely to apply for
skills), firm training can reduce worker turnover and to receive a promotion than comparable
and associated costs, and improve productivity, non-participants.21 A random assignment study
if the training is of high quality and if workers’ of workplace literacy programs conducted
expectations about the benefits of training are in late 1990s also found positive impacts
fulfilled.17 There is also some evidence that firms of literacy programs on worker outcomes,
that invest in education and training realize including improved skills, attendance, and job
significant and positive returns to shareholders, performance; higher receipt of job benefits;
suggesting the importance of training to successful and development of new career plans.22 The
businesses.18 However, quantitative estimates same results were evident from a 1997 survey
on the return-on-investment to firm training in of Canadian employers who offered workplace
the U.S. are limited, due in large part to a lack of literacy instruction.23
standardized measures and publicly-available data,
particularly on the direct costs of training.19 Public policies have also been developed to fund
or enhance workplace-based training, several
Lerman, Robert I., Signe-Mary McKernan and Stephanie Riegg
footnote 15
of which appear to have positive employment
(2004). The Scope of Employer-Provided Training in the United States:
Who, What, Where, and How Much? In Job Training Policy in the and earnings outcomes for workers: (1)
United States, Christopher J. O’Leary, Robert A. Straits, and Stephen subsidized on-the-job (OJT), (2) registered
A. Wandner, eds. Kalamazoo, MI: W.E. Upjohn Institute, pp. 211-244.
Retrieved from http://research.upjohn.org/up_bookchapters/168. apprenticeships, and (3) subsidized jobs and
16
Lynch, Lisa M. (1994). Introduction. In Training and the Private transitional employment.
Sector: International Comparisons, Lisa M. Lynch, ed. University of
Chicago Press.
17
Wagner, Shelbye (2004). An Examination of the Utility of Training: The Organization for Economic Co-operation and Development.
footnote 20
Relationships with Turnover and Promotion. Emploria State Univer- (2013). Survey of Adult Skills [data file], Retrieved from http://www.
sity Department of Psychology and Special Education. Unpublished oecd.org/site/piaac/overviewoftheoecdskillsoutlook2013.htm.
manuscript; and Wagner, Richard and Robert Weigand (2004). Can the 21
Krueger, A. and Rouse, C. (1994). New Evidence on Workplace
Value of Training be Measured? A Simplified Approach to Evaluating Education. Working Paper 4831. Cambridge, MA: National Bureau of
Training. Health Care Manager, Vol. 23, Issue 1, pp. 71-77. Economic Research.
18
Laurie J. Bassi, Jens Ludwig, Daniel P. McMurrer, and Mark Van 22
Moore, M. T., Myers, D., & Silva, T. (1998). Addressing Literacy Needs
Buren (2000), “Profiting From Learning: Do Firms” Investments in at Work: Implementation and Impact of Workplace Literacy Programs:
Education and Training Pay Off?” Research White Paper, ASTC and Final Report of national evaluation of NWLP partnerships.
SABA; and Almeida, Rita and Pedro Carneiro (2008). The Return to 23
Bloom, M., Burrows, M. et al. (1997). The Economic Benefits of Im-
Firm Investments in Human Capital. The World Bank Social Protection proving Literacy Skills in the Workplace. Ottawa ON: The Conference
and Labor Discussion Paper No. 0822. Board of Canada.
19
Ibid.; and Lynch (1994).
7Publicly Subsidized On-The-Job Training (OJT). experimental evaluation found that participants
Subsidizing workplace-based learning appears in registered apprenticeship programs earned
to be an important approach that meets about $8,000 a year and over $200,000 in
employer needs and worker skills development. their lifetime more than a comparison group of
A common type of subsidized employment individuals who did not participate in registered
called OJT, available through workforce apprenticeships.26
development agencies and other programs
provides a subsidy to firms amounting to about Subsidized Public Employment with Training.
50 or 60 percent of the wages the firm pays In addition to subsidized OJT, other forms of
to a new worker for a specified period of time subsidized employment approaches in the U.S.
(e.g., six or nine months) to offset the costs of fund work-based jobs and experience, mainly
training. While there is usually no commitment in the public and non-profit sectors. These
to hire the person as a regular employee after programs are usually targeted to particular
the end of the subsidy period, most programs groups of workers, such as the unemployed
and employers have that expectation. Over during periods of high unemployment, youth
the past four decades, evaluations have found during summer periods, or welfare recipients.
that subsidized OJT has positive employment While evidence on the effects of subsidized
and earnings outcomes.24 In-firm, on-the-job public employment is very mixed, there
training, whether subsidized or not, has also are some important findings from highly
been associated with better employment structured, subsidized employment programs,
outcomes in many other countries, a such as supported work experience for welfare
review of causal evaluations on job training recipients and wage-paying transitional jobs for
internationally has shown.25 the unemployed.27
Registered Apprenticeships. Some subsidized employment programs focus
Registered apprenticeship is a comprehensive, on providing individuals who have significant
formal, work-place-based training model that barriers to employment with work experience
involves a close public-private partnership and basic job skills training. Very early
of government, firms, unions, and training experimental and non-experimental evaluations
institutions. Participants in registered found that subsidized employment improved
apprenticeship programs receive industry- workforce attachment and work hours among
specified technical instruction and wages from very low-skilled youth with little prior work
employers. Upon program completion, which experience and among adults (particularly
often takes three or more years, participants women and some adult male groups) with
receive a nationally-recognized certification moderate-to-low levels of education and
administered by the Office of Apprenticeship little recent work experience.28 Studies in the
at the U.S. Department of Labor. Evidence 1970s also found that supported employment
suggests that registered apprenticeship was associated with moderate increases in
programs are quite effective. A recent quasi- employment and earnings among long-term
Ibid; and Kleinman, Liu, Mastri, Reed, Reed, Sattar, & Ziegler
footnote 24
(2012). An Effectiveness Assessment and Cost-Benefit Analysis of Kleinman, et al. (2012).
footnote 26
Registered Apprenticeship in 10 States. Mathematica Policy Research. 27
Bloom et. al. Promoting Work in Public Housing: The Effectiveness of
Prepared for the U.S. Department of Labor, Employment and Training Jobs-Plus. MDRC. http://www.mdrc.org/sites/default/files/full_485.
Administration. pdf; and Card, Kluve, & Weber (2010). Active Labour Market Policy
25
Evidence Review: Employment and Training. (2014). What Works Evaluations: A Meta-Analysis. The Economic Journal, 120, F452-F477.
Centre for Local Economic Growth. Retrieved from http://what- 28
Summary and Findings of the National Supported Work Demonstra-
worksgrowth.org/wp-content/uploads/2014/04/Employment-Train- tion. (1980). Board of Directors, MDRC. Retrieved from http://www.
ing-Full-Report.pdf. mdrc.org/sites/default/files/full_249.pdf.
8welfare recipients and more modest gains Subsidized employment also has shown
among former drug addicts and young school promise for young adults with cognitive
dropouts with high rates of delinquency. Some disabilities, with large employment and
studies in the 1980s and 1990s found that earnings gains among those with moderate
subsidized employment had substantial impacts levels of mental retardation.32
for adult women, but impacts have been more
mixed for broader segments of the young adult More recently, a large-scale subsidized
dropout population.29 employment program for unemployed workers
mounted under the American Recovery and
A few more recent experimental evaluations Reinvestment Act (ARRA) showed more
on subsidized transitional jobs focused on low promise. From 2009 to 2010, states accessed
income and disadvantaged workers also showed $1.3 billion in funding from the Temporary
mixed results. One such evaluation, of the Assistance for Needy Families (TANF)
Center for Employment Opportunities (CEO) Emergency Fund to help cover the costs of
in New York City, an employment program creating or expanding subsidized employment
that placed former prisoners in transitional programs for low-income, unemployed workers
jobs, found statistically significant impacts in the wake of the Great Recession. By the
in terms of reduced criminal recidivism and fund’s expiration, in September 2010, states had
arrests for program participants compared placed more than a quarter of a million people
to a control group that did not go into the in subsidized jobs.33 One quasi-experimental
program. However, these employment and evaluation of the program in Florida also
earnings impacts were not maintained after found that, compared to individuals who were
the end of the subsidized job.30 Other evidence eligible for but did not take part in subsidized
shows that subsidized jobs can have positive employment, program participants experienced
impacts on employment and earnings when significantly greater increases in earnings even
more job-specific training and subsequent job after the subsidy ended. 34
placement is incorporated into the design. For
example, a rigorous evaluation of the effects of Employer/Industry Engagement
Philadelphia’s Transitional Work Corporation Employer and industry engagement in job
(TWC) on long-term and potential long-term training programs can take many forms,
welfare/TANF recipients found that, after 18 including the direct involvement of employers
months, participants in the transitional jobs in determining training demanded by the
program experienced statistically significant labor market, developing curricula, providing
increases in earnings compared to a control worksite internships, making equipment
group that did not participate in the program, Kerachsky, S., Thornton, C., Bloomenthal, A., Maynard, R., &
footnote 32
as well as significant decreases in both receipt of Stephans, S. (1985). Impacts of Transitional Employment for Mentally
TANF and TANF payment amounts.31 Retarded Young Adults: Results of the STETS Demonstration. Mathe-
matica Policy Research, Inc. Retrieved from http://www.mdrc.org/sites/
Bell, S. H. & Orr, L.L. (1994). Is Subsidized Employment Cost
footnote 29
default/files/impacts_of_transitional_employment_fr.pdf.
Effective for Welfare Recipients? Experimental Evidence from Seven 33
Pavetti et. al (2011). Creating Subsidized Employment Opportunities
State Demonstrations. Journal of Human Resources, University of
for Low-Income Parents: The Legacy of the TANF Emergency Fund.
Wisconsin Press, vol. 29(1), pp. 42-61.
Retrieved from http://www.cbpp.org/files/2-16-11tanf.pdf; and Farrell
30
Redcross et al. (2010). Work After Prison: One-Year Findings from
et. al (2011). Subsidizing Employment Opportunities for Low-Income
the Transitional Jobs Reentry Demonstration. Retrieved from http://
Families: A Review of State Employment Programs Created Through the
www.mdrc.org/sites/default/files/full_615.pdf.
TANF Emergency Fund. MDRC. Retrieved from http://www.mdrc.org/
31
Bloom, D., Rich, S., Redcross, C., Jacobs, E., Yahner, J., & Pindus,
publication/subsidizing-employment-opportunities-low-income-families.
N. (2009). Alternative Welfare-to-Work Strategies for the Hard-to- 34
Roder, A. & Elliott, M. (2013). Stimulating Opportunity: An Evaluation
Employ. MDRC. Retrieved from http://www.mdrc.org/sites/default/
of ARRA-Funded Subsidized Employment Programs. Economic Mobility
files/full_19.pdf.
Corporation. Retrieved from http://economicmobilitycorp.org/uploads/
stimulating-opportunity-full-report.pdf.
9and technology available for programs, and One recent random assignment evaluation
developing and teaching courses. Strong of sectoral training programs that provided
partnerships among the public workforce integrated job readiness, basic skills, technical
system, education providers, and employers training, case management, supportive services,
in key sectors appear to be critical for and job placement assistance found that, over
improving employment and earnings the 24-month study period, participants in some
outcomes for workers. programs earned 18 percent more, were more
likely to be employed, and worked significantly
Sectoral Training. more hours than members of the control
More than half of the nation’s states are group.39 This evaluation reinforced findings
implementing sectoral training strategies from earlier studies that found that employers
– partnerships of employers within one also benefit from partnerships with training
industry that bring government, education, programs. For example, in a 2009 survey of
training, economic development, labor, and Pennsylvania employers, 84 percent of those
community organizations together to focus who indicated they participated in industry
on the workforce needs of an industry within partnerships reported significant increases in
a regional labor market.35 Sectoral training productivity. A 2008 study in Massachusetts
strategies include a wide area of focus and found that sector initiatives resulted in a 41
strategies, but most often: (1) address current percent reduction in employee turnover, a 19
and emerging skills gaps; (2) provide a percent reduction in work revision, and a 23
means to engage directly with industry across percent reduction in customer complaints.40
traditional boundaries; (3) better align state
and local programs and resources serving There is, therefore, reason to be optimistic about
employers and workers; and (4) address issues sectoral training strategies. The number of
at multiple firms in ways that individual firms, sectoral training programs is growing, and there
which independently could not solve the issues, are also several ongoing formal evaluations
can benefit.36 from which findings will become available over
the next few years. However, more evaluations
Over the past decade, local and national are needed to determine long-term impacts,
foundations have supported the sector model, effective ways to integrate work and training,
including 22 regional workforce funding and career advancement outcomes.41
collaboratives, more than 80 associated
workforce partnerships, and the National Fund Layoff Aversion and Worker Retraining.
for Workforce Solutions initiative.37 Sectoral One way that incumbent workers may
education and training programs that take a be retrained is through public-private
regional, industry-focused and occupation- partnerships that respond quickly to firm
specific approach to building skills may be needs, including sometimes working in tandem
effective in increasing employment and the to avert layoffs. Over the last decade, for
receipt of credentials.38 example, the Department of Labor and state
and local Workforce Investment Boards (WIBs)
footnote 35
Woolsey, L. & Groves, G. (2013) State Sector Strategies Coming
of Age: Implications for State Workforce Policy Makers. Maguire, S., Freely, J., Clymer, C., Conway, M. & Schwartz, D.
footnote 39
36
Ibid. (2010). Tuning In to Local Labor Markets: Findings from the Sectoral
37
Ibid. Employment Impact Study. Philadelphia, PA: Public/Private Ventures.
38
Glover, R. W. & King, C. T. (2010). Sectoral Approaches to Work- 40
Woolsey, Lindsey and Groves, Garrett (2013). State Sector Strategies
force Development: Toward and Effective U.S. Labor-Market Policy. Coming of Age: Implications for State Workforce Policy Makers.
In Human Resource Economics and Public Policy: Essays in Honor of 41
Glover & King. (2014).
Vernon M. Briggs Jr. W.E. Upjohn Institute for Employment Research.
Retrieved from http://research.upjohn.org/up_bookchapters/190/.
10have used Workforce Investment Act dislocated Labor Market Information and Guidance
worker funds for incumbent worker training to The workforce development system and the U.S.
prevent layoffs or minimize the effect of layoffs Bureau of Labor Statistics collect and publish
on workers and communities. Companies information on skills required for particular
can be determined “at risk” of closing or occupations, along with average wages and
necessitating layoffs for a variety of factors, projections of future demand. Evidence from
from quality problems to management several evaluations suggests that having labor
instability to declining sales, and addressing market information improves workers’ ability
these risk factors before they become acute to make informed decisions about training
increases available options and the likelihood and employment. For example, a major RCT
of successfully averting layoffs. Strategies evaluation of individual training accounts
to address the risk factors can include (ITAs) available through the workforce
retraining existing workers to increase investment system, which allow workers to
efficiency or adopting new technologies choose their training and training provider,
and process improvements. resulted in more positive outcomes when
workers received structured guidance and
Some layoff aversion strategies have both information compared to workers who received
economic development and retraining the ITA and selected training options on their
objectives. For example, at the California own.43 Similarly, a recent evaluation of workers
Manufacturing Technology Consulting eligible for trade adjustment assistance found
(CMTC), the Department of Commerce- suggestive evidence that guidance on career
sponsored Manufacturing Extension opportunities was associated with higher
Partnership (MEP) serving southern California, persistence in occupational training. Longer-
works with eight different local Workforce term follow-up will indicate whether they also
Investment Boards and other partners to have higher completion rates.44
implement business services, retraining, and
layoff aversion programs. The MEP program The importance of labor market information
has also conducted layoff aversion programs and guidance when making training decisions is
on behalf of the public workforce system in consistent with broader evidence about the role
Pennsylvania, South Carolina, Oklahoma, guidance and assistance to unemployed workers
Missouri, Michigan, New York, and several can play. An experimental evaluation of
other states over the last decade. services to unemployment insurance recipients
in Nevada found that recipients who received
While there are no evaluations yet of the impact labor market information, reemployment
of MEP and other economic development/ planning, and job search skills training, had
workforce development collaborations on worker Perez-Johnson, I., Moore, Q., & Santillano, R. (2011). Improving
footnote 43
skills, there are suggestive results in terms of the Effectiveness of Individual Training Accounts: Long-Term Findings
jobs created and increased firm sales on which from an Experimental Evaluation of Three Service Delivery Models.
Mathematica Policy Research. Retrieved from http://www.mathemati-
further research should be conducted.42 ca-mpr.com/~/media/publications/PDFs/labor/ITA_fnlrpt.pdf.
44
Dolfin, S., Berk, J. (2010). National Evaluation of the Trade Adjust-
ment Assistance Program: Characteristics of Workers Eligible Under the
footnote 42
Layoff Aversion Fact Sheet, MEP National Program Office. Re- 2002 TAA Program and their Early Program Experiences. Mathematica
trieved from http://www.nist.gov/mep/upload/Layoff-Aversion2014.pdf. Policy Research. Retrieved from http://wdr.doleta.gov/research/Full-
Text_Documents.
11reduced periods of unemployment, sped up re- Training, Education, and Employment Services
employment, and increased earnings compared Combined.
to a control group that received no special Evidence suggests that comprehensive and
services.45 Subsequent experimental tests integrated strategies to concurrently address
are underway by the Department of Labor to employment, training and education can
confirm these earlier findings. help low-skilled workers in the labor market,
including a number of evaluations of job
Given the emerging evidence on the training programs for low-skilled and low-
importance of labor market information for income individuals conducted in the mid- to late
reemployment and training success, several 1990s as part of the nation’s efforts to reform
states and programs are using official labor welfare. Some studies compared the relative
market information to develop consumer effectiveness of programs that focused mainly
reports, or scorecards, that publish results on immediate job placement to programs that
of training programs (e.g., graduation rates provided training first, before job placement.
and employment outcomes) to help workers The job-search-first approach emphasized
and students make the right decisions about immediately assigning people to short-term job
training. While there is no empirical evidence search activities with the aim of getting them
yet on the use and value of the scorecards, into the labor market quickly. The education-
the efforts are based on the emerging or-training-first approach emphasized basic
evidence about the importance of labor or remedial education, GED preparation, and
market information and guidance for workers to a lesser extent, vocational training (not
making decisions about training and careers.46 college) before steering participants toward the
Incumbent workers also may benefit from better labor market.47 The job-search-first approach
labor market information, but there is very little led to more rapid job placement, though after
research specifically on this issue. five years, both groups were similar in terms
of employment and earnings. However,
Cross-system Coordination and individuals who received a concurrent mix of
Integrated Education, Training, and training and employment services had better
Work Supports employment and earnings outcomes than either
Research on job training and skills development the direct job placement group or the education
indicates that many of the most promising job and training group.48
training strategies involve a mix of employment
services, job training, and supportive services. Other evidence on the effectiveness of
This inevitably requires coordination and integrating education and training comes from
collaboration across systems that provide research on approaches to improve skills of
specialized services or training, including incarcerated individuals to prepare them for
workforce development agencies, schools successful reentry after their release. Studies
and community colleges, and public and have found that education and training
non-profit human services and employment for incarcerated adults reduces recidivism
services agencies.
In the education-or-training-first programs, those who lacked a
footnote 47
high school diploma or GED were generally referred to basic education
Michaelides, M., Poe-Yamagata, E., Benus, J., Tirumalasetti, D.
footnote 45 courses, including remedial instruction in reading and math, English as
(2012). Impact of the Reemployment and Eligibility Assessment (REA) a second language classes, or preparation for the GED test. Those with a
Initiative in Nevada. Impaq International, LLC. Retrieved from http:// high school diploma or GED were generally referred to vocational train-
wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_08_ ing, rather than to degree-producing, postsecondary academic courses.
REA_Nevada_Follow_up_Report.pdf.
48
This finding is also supported by a synthesis of findings across 20 pro-
46
McConnell et al (2006). Managing Customers’ Training Choices: Find- grams examined using random assignment designs, including these 1990s
ings From The Individual Training Account Experiment. Retrieved from programs as well as some operated in the late 1980s. Of the 20, the two
http://wdr.doleta.gov/research/FullText_Documents/managing_cus- most successul had “mixed strategies” (Gueron and Hamilton 2002).
tomers_choices.pdf.
12and increases their rates of post-release Financial supports aim primarily to enable,
employment. A recent meta-analysis by the rather than persuade, people to work and
RAND Corporation of studies on correctional go to school. In addition, supports often
education conducted between 1980 and 2011 are designed to increase income in order to
found that the odds of recidivating among improve other aspects of family and child well-
inmates who participated in correctional being. Examples of financial supports include:
education were 43 percent lower than the financial aid and other income supports for
odds of recidivating among inmates who did needy students; relatively broad supports for
not participate in correctional education. workers (e.g., the earned income tax credit); and
They found that inmates who received education financial assistance aimed at helping families
pre-release had post-release employment rates cope with emergencies and other specific needs
13 percent higher than those who did not.49 for employment and training.
Another program that integrates education, Since assets also represent an important
training, and work supports is vocational potential source of support in sustaining work
rehabilitation (VR), which encompasses a and training, programs that directly contribute
variety of vocational and rehabilitative services to family savings also are important.51 Several
for individuals with disabilities, including tests of asset-building strategies suggest
vocational training, career counseling, on- modest success in increasing assets but little
the-job training, and job search services, effect on employment and earnings - possibly
to help them prepare for, secure, regain because savings remained very low.52 Recent
or retain employment. Some state-level experimental evidence also suggests that
quasi-experimental studies examining the increased access to housing vouchers is not
impact of vocational rehabilitation services in itself sufficient to affect employment.53 But
on employment and earnings found positive a more comprehensive approach for public
employment effects, but more rigorous housing residents tested under the Jobs-Plus
evaluations of these services are needed to be Demonstration found positive impacts on
conclusive. Some benefit-cost analyses of the employment and earnings when earnings were
program suggest considerable returns, but there treated more flexibly for rent (i.e., did not lead
is great variation. to rent increase), and individuals received
employment and labor market information and
Support Services. supports for training and employment.54 These
Studies show that, along with work experience, findings suggest the importance of expanding
education, and training, a range of supports supports and reducing disincentives to work,
and services is needed, such as child care along with employment and training services.
and transportation, to enable disadvantaged
individuals to participate in job training.50 Again, such programs also typically include an incentive aspect, in that
footnote 51
program contributions are conditioned on the amounts that families save.
Davis, L.M., Bozick, R. et al. (2013). Evaluating the Effectiveness
footnote 49
52
Golden, O., Loprest, P., & Mills, G. (2012). Economic Security for
of Correctional Education: A Meta-Analysis of Programs That Provide
Extremely Vulnerable Families: Themes and Options for Workforce De-
Education to Incarcerated Adults. Santa Monica, CA: RAND Corporation.
velopment and Asset Strategies. Urban Institute. Retrieved from http://
50
Herbst, C.M. & Tekin, E. (2011a). Do child care subsidies influence
www.urban.org/UploadedPDF/412699-Economic-Security-for-Ex-
single mothers’ decision to invest in human capital? Economics of
tremely-Vulnerable-Families.pdf
Education Review. (30). pp. 901-912. Retrieved from http://www.chris- 53
Wood, M., Turnham, J., Mills, M. (2008). Housing Affordability and
herbst.net/files/Download/C._Herbst_Subsidies_Human_Capital.pdf.
Family Well-Being: Results from the Housing Voucher Evaluation. Abt
Associates Inc. Retrieved from http://www.abtassociates.com/reports/
Woods_Turnham_Mills_%5B11%5D_HPD.pdf.
54
Riccio, J.A. (2010). Sustained Earnings Gains for Residents in a Public
Housing Jobs Project. Policy Brief. MDRC: New York.
13Job Search and “Soft Skills” Training. it has no long-term employment impact. At the
Various studies suggest that “soft skills” intensive end of the scale, some programs have
training (which includes work-related skills been shown to produce positive impacts. For
like preparing a resume and understanding example, a fairly intensive, theory-based, job
work expectations, as well as life skills that search training program, Winning New Jobs
can be applied more broadly, including (WNJ), which offers a series of structured
household management, financial literacy, and workshops for unemployed workers that focus
balancing work and parenting responsibilities) on strengthening self-esteem and other coping
is an important complement to training and skills to promote resiliency in dealing with
education. This training aims to develop the job loss, rejection and financial stress during
workplace competencies that research shows job search, has been tested in unemployment
employers want workers to possess, such as offices in Michigan and several other countries
good interpersonal skills, honesty, punctuality, and had positive findings.57 There is little
and good time management. The importance research on other specific soft skills models.
of these skills was also shown by research from
the National Research Council (NRC). In 2012, Student Support Strategies.
the NRC developed a taxonomy of “21st Century Other promising strategies for adult job
Skills” that consists of three competency training are those focused on engaging people
domains: cognitive, intrapersonal, and in jobs and training programs and increasing
interpersonal. The NRC found that, among the their persistence and success in these
non-cognitive competencies, conscientiousness activities. These strategies may be designed
- being organized, responsible, and hardworking to complement particular jobs and training
- has the strongest correlation with positive programs, but are conceptually distinct
work and educational outcomes.55 This expands from the jobs and training opportunities
upon policies endorsed by the Secretary’s themselves. Studies that appear to support the
Commission on Achieving Necessary Skills effectiveness of support strategies include an
(SCANS) in the 1990s, which focused on implementation evaluation of the Community-
developing and teaching specific occupational Based Job Training Grant program, which
competencies as well as soft skills.56 found a need to better prepare and support
low-income, low-skill participants so they
Job search assistance programs and job clubs could succeed in occupational training.58 In
typically support the acquisition of soft skills on addition, a recent experimental evaluation of
how to search for a job, create a good resume, the long-term effects of a learning communities
and understand job requirements. Programs program at a community college appears
range from low-intensity job readiness training to support this finding. The study found
typically provided at the beginning of a job that students benefited from receiving a
club to higher-intensity approaches, such as single semester of academic support even
monthly home visits by highly trained staff several years later; participation in the
lasting up to several years. Even basic job search learning communities was associated with
assistance speeds up job placement, although the attainment of a greater number of credits
footnote 57
Caplan et al. (1989). Job Seeking, Reemployment, and Mental
Pellegrino, J.W. and Hilton, M.L. (2012) Education for Life and
footnote 55
Health: A Randomized Field Experiment in Coping with Job Loss. Insti-
Work: Developing Transferable Knowledge and Skills in the 21st Centu- tute for Social Research, University of Michigan. Retrieved from http://
ry. Washington, DC: National Research Council. www.isr.umich.edu/src/seh/mprc/PDFs/Job%20Seeking.pdf.
56
Kane, M., Berryman, S., Goslin, G., & Meltzer, A. (1990). The Secre- 58
Eyster et. al (2012). Implementation Evaluation of the Community-Based
tary’s Commission on Achieving Necessary Skills. US Department of Job Training Grant (CBJTG) Program. Urban Institute. Retrieved from
Labor. Retrieved from http://wdr.doleta.gov/SCANS/idsrw/idsrw.pdf. http://www.urban.org/uploadedpdf/412890-Implementation-Evalua-
tion-of-the-Community-Based-Job-Training-Grant-Program.pdf.
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