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The 2021 net impact and cost-benefit evaluation of Washington state’s workforce development programs (Dula, 2021)

Absence of conflict of interest.

Citation

Dula, C. (2021). The 2021 net impact and cost-benefit evaluation of Washington state’s workforce development programs. Washington Workforce Training and Education Coordinating Board. [WorkFirst Program]

Highlights

Intervention Examined

WorkFirst Program

Features of the Intervention

The WorkFirst program is a workforce development program that provides supports and services for people receiving Temporary Assistance to Needy Families (TANF). Services include career counseling, job search assistance, and subsidized costs to aid education program completion. Families, case managers, and local community agencies collaborate on this program to offer employment and training opportunities and to help participants attain and retain employment. 

Features of the Study

The study used a difference-in-differences design to examine the impact of the WorkFirst program in Washington state on employment, earnings, and public benefits receipt outcomes. The author matched WorkFirst program participants to similar nonparticipants using propensity scores developed from socio-demographic information. The comparison group members included individuals who registered to use Washington’s WorkSource employment centers and online job-search portals as part of the Wagner-Peyser federal program, but did not participate in the WorkFirst programs. The study sample included two cohorts. The 2014-2015 cohort included 27,890 individuals (16,229 intervention and 11,661 comparison) and was predominantly female (69%), White (57%), with an average age of 32. The 2016-2017 cohort included 21,717 individuals (13,118 intervention and 8,599 comparison) and was predominantly female (68%), White (55%), with an average age of 33. 

The primary data sources were administrative data from the WorkFirst program and Washington's WorkSource employment centers and online job-search portals. The author conducted statistical models to examine differences in outcomes between the intervention and comparison groups at one year and three years after program exit. Outcomes included employment rate, quarterly hours worked, hourly wage, quarterly earnings, and quarterly Unemployment Insurance (UI) benefits received. 

Findings

Employment

  • The study found that WorkFirst program participants had significantly higher employment rates than comparison group members one year after program exit, but had significantly lower employment rates three years after program exit. The study also found that program participants had significantly more quarterly hours worked than comparison group members at both one year and three years after program exit. 

Earnings and wages

  • The study found that WorkFirst program participants had significantly higher hourly wages and higher quarterly earnings than comparison group members one year after program exit. However, no significant differences were found between the groups three years after program exit. 

Public benefits receipt

  • The study found that WorkFirst program participants received significantly more in quarterly UI benefits than comparison group members one year after program exit, but received significantly less in quarterly UI benefits three years after program exit. 

Considerations for Interpreting the Findings

The study reports a less stringent statistical significance level, considering p-values of less than 0.10 to be significant, though it is standard practice to consider statistical significance if the p-value is less than 0.05. Only results that demonstrate a p-value of less than 0.05 are considered statistically significant in this profile.

Causal Evidence Rating

The quality of causal evidence presented in this report is moderate because it was based on a well-implemented nonexperimental design. This means we are somewhat confident that the estimated effects are attributable to the WorkFirst program, but other factors might also have contributed. 

Reviewed by CLEAR

April 2024