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Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance

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Listed:
  • Lawrence F. Katz
  • Jonathan Roth
  • Richard Hendra
  • Kelsey Schaberg

Abstract

This paper examines the evidence from randomized evaluations of sector-focused training programs that target low-wage workers and combine up-front screening, occupational and soft-skills training, and wraparound services. The programs generate substantial and persistent earnings gains (12%–34%) following training. Theoretical mechanisms for program impacts are explored for the WorkAdvance demonstration. Earnings gains are generated by getting participants into higher-wage jobs in higher-earning industries and occupations, not just by raising employment. Training in transferable and certifiable skills (likely underprovided from poaching concerns) and reductions of employment barriers to high-wage sectors for nontraditional workers appear to play key roles.

Suggested Citation

  • Lawrence F. Katz & Jonathan Roth & Richard Hendra & Kelsey Schaberg, 2022. "Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance," Journal of Labor Economics, University of Chicago Press, vol. 40(S1), pages 249-291.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/717932
    DOI: 10.1086/717932
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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy

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