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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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    Cited by:

    1. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    2. Francesco Filippucci, 2022. "What Do NEETs Need? The Effect of Combining Activation Policies and Cash Transfers," Working Papers halshs-03524083, HAL.
    3. Dahlberg, Matz & Egebark, Johan & Vikman, Ulrika & Özcan, Gülay, 2024. "Labor market integration of refugees: RCT evidence from an early intervention program in Sweden," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 614-630.
    4. Fredrik Andersson & Harry J. Holzer & Julia I. Lane & David Rosenblum & Jeffrey Smith, 2024. "Does Federally Funded Job Training Work? Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms," Journal of Human Resources, University of Wisconsin Press, vol. 59(4), pages 1244-1283.
    5. Ernst, Ekkehard & Merola, Rossana & Reljic, Jelena, 2024. "Fiscal policy instruments for inclusive labour markets: A review," GLO Discussion Paper Series 1406, Global Labor Organization (GLO).
    6. Monica P. Bhatt & Sara B. Heller & Max Kapustin & Marianne Bertrand & Christopher Blattman, 2023. "Predicting and Preventing Gun Violence: An Experimental Evaluation of READI Chicago," NBER Working Papers 30852, National Bureau of Economic Research, Inc.
    7. Bürgisser, Reto, 2023. "Policy Responses to Technological Change in the Workplace," SocArXiv kwxn2, Center for Open Science.
    8. Lehner, Lukas & Kasy, Maximilian, 2022. "Employing the unemployed of Marienthal: Evaluation of a guaranteed job program," INET Oxford Working Papers 2022-29, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    9. Richard Blundell, 2024. "Beyond tax credits and the minimum wage: the challenge of labour market inequality," Fiscal Studies, John Wiley & Sons, vol. 45(1), pages 25-42, March.
    10. David Card & Jesse Rothstein & Moises Yi, 2024. "Industry Wage Differentials: A Firm-Based Approach," Journal of Labor Economics, University of Chicago Press, vol. 42(S1), pages 11-59.
    11. Dan A. Black & Lars Skipper & Jeffrey A. Smith & Jeffrey Andrew Smith, 2023. "Firm Training," CESifo Working Paper Series 10268, CESifo.
    12. Holzer, Harry J., 2023. "Can Workforce Development Help Us Reach Full Employment?," IZA Discussion Papers 16624, Institute of Labor Economics (IZA).
    13. Lipowski, Cäcilia & Salomons, Anna & Zierahn-Weilage, Ulrich, 2024. "Expertise at work: New technologies, new skills, and worker impacts," ZEW Discussion Papers 24-044, ZEW - Leibniz Centre for European Economic Research.
    14. Diego Dabed Sitnisky & Sabrina Genz & Emilie Rademakers, 2023. "Resilience to Automation: The Role of Task Overlap for Job Finding," Working Papers 2312, Utrecht School of Economics.
    15. Driton Qehaja & Albian Krasniqi, 2021. "Who is Most Likely to Remigrate? Evidence from Kosovo’s Returned Migrants," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 98-110.
    16. Samuel Bentolila & Antonio Cabrales & Marcel Jansen, 2023. "Does Dual Vocational Education and Training Pay Off?," Studies on the Spanish Economy eee2023-34, FEDEA.
    17. Barham, Tania & Cadena, Brian C. & Turner, Patrick S, 2023. "Taking a Chance on Workers: Evidence on the Effects and Mechanisms of Subsidized Employment from an RCT," IZA Discussion Papers 16221, Institute of Labor Economics (IZA).
    18. Chowdhury, Shyamal & Hasan, Syed & Sharma, Uttam, 2024. "The Role of Trainee Selection in the Effectiveness of Vocational Training: Evidence from a Randomized Controlled Trial in Nepal," IZA Discussion Papers 16705, Institute of Labor Economics (IZA).
    19. Humlum, Anders & Munch, Jakob R. & Rasmussen, Mette, 2023. "What Works for the Unemployed? Evidence from Quasi-Random Caseworker Assignments," IZA Discussion Papers 16033, Institute of Labor Economics (IZA).
    20. Raj Chetty & Will Dobbie & Benjamin Goldman & Sonya R. Porter & Crystal S. Yang, 2024. "Changing Opportunity: Sociological Mechanisms Underlying Growing Class Gaps and Shrinking Race Gaps in Economic Mobility," Working Papers 24-38, Center for Economic Studies, U.S. Census Bureau.
    21. Humlum, Anders & Munch, Jakob R. & Plato, Pernille, 2023. "Changing Tracks: Human Capital Investment after Loss of Ability," IZA Discussion Papers 15992, Institute of Labor Economics (IZA).
    22. Francesco Filippucci, 2022. "What Do NEETs Need? The Effect of Combining Activation Policies and Cash Transfers," PSE Working Papers halshs-03524083, HAL.
    23. Jason Jabbari & Haotian Zheng & Stephen Roll & Daniel Auguste & Oren Heller, 2024. "How Did Reskilling During the COVID-19 Pandemic Relate to Entrepreneurship and Optimism? Barriers, Opportunities, and Implications for Equity," Journal of Family and Economic Issues, Springer, vol. 45(2), pages 410-429, June.

    More about this item

    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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