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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 upfront screening, occupational and soft skills training, and wraparound services. The programs generate substantial and persistent earnings gains (11 to 40 percent) following training completion. 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 under-provided from poaching concerns) and reductions of employment barriers to high-wage sectors for non-traditional workers appear to play key roles.

Suggested Citation

  • Lawrence F. Katz & Jonathan Roth & Richard Hendra & Kelsey Schaberg, 2020. "Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance," NBER Working Papers 28248, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28248
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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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