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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. [Division of Vocational Rehabilitation (DVR) Program]

Highlights

Intervention Examined

Division of Vocational Rehabilitation (DVR) Program

Features of the Intervention

The Division of Vocational Rehabilitation (DVR) program within the Department of Social and Health Services is a workforce development program that provides supports and services to help individuals with disabilities attain employment. Services are tailored to the needs of the individual and can include assessments, counseling, vocational and academic training, physical and mental restoration services, assistive technology, services for independent living, services for mobility, transportation, communication services, job search, and job placement. 

Features of the Study

The study used a difference-in-differences design to examine the impact of the DVR program in Washington state on employment, earnings, and public benefits receipt outcomes. The author matched DVR 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 DVR program. The study sample included two cohorts. The 2014-2015 cohort included 6,710 individuals (4,347 intervention and 2,363 comparison) and was predominantly male (55%), White (71%), with an average age of 38. The 2016-2017 cohort included 6,933 individuals (4,616 intervention and 2,317 comparison) and was predominantly male (56%), White (70%), with an average age of 38. 

The primary data sources were administrative data from the DVR 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 DVR program participants had significantly higher employment rates than comparison group members one year after program exit, but found no significant differences three years after exit. The program participants also had significantly more quarterly hours worked at both one year and three years after program exit. 

Earnings and wages

  • The study found that DVR program participants had significantly higher hourly wages and higher quarterly earnings than comparison group members at both one year and three years after program exit. 

Public benefits receipt

  • The study found that DVR program participants received significantly more in quarterly UI benefits than comparison group members at both one year and 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 DVR Program, but other factors might also have contributed. 

Reviewed by CLEAR

April 2024