Working Paper: NBER ID: w28248
Authors: 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.
Keywords: Sectoral Employment Programs; WorkAdvance; Earnings Gains; Low-Wage Workers; Workforce Development
JEL Codes: J24; J38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| sectoral employment programs (J68) | earnings gains (E25) |
| sectoral employment programs (J68) | employment rates (J68) |
| sectoral employment programs (J68) | job quality (J24) |
| sector-focused training programs (M53) | higher-wage jobs (J39) |
| higher-wage jobs (J39) | earnings gains (E25) |
| WorkAdvance program (J68) | share of participants employed in targeted sectors (J68) |
| occupational and soft skills training (J24) | earnings impacts (J31) |
| sectoral employment programs (J68) | persistent earnings gains (G35) |