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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. [Registered Apprenticeships]

Highlights

Intervention Examined

Registered Apprenticeship (RA)

Features of the Intervention

Registered Apprenticeships are workforce development programs that provide individuals with both classroom instruction and on-the-job training from a journey-level trade professional. Apprentices receive progressively increasing wages in these paid learning experiences as they gain more knowledge and skills related to their occupation of interest. Registered Apprenticeship programs require that participants be at least 16 years old and often require at least a high school diploma or GED. Registered Apprenticeship programs in Washington State are governed by the Washington State Apprenticeship and Training Council and administered by Washington’s Department of Labor and Industries.  

Features of the Study

The study used a difference-in-differences design to examine the impact of Registered Apprenticeships programs in Washington state on employment, earnings, and public benefits receipt outcomes. The author matched Registered Apprenticeship 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 Registered Apprenticeships program. The study sample included two cohorts. The 2014-2015 cohort included 4,958 individuals (2,583 intervention and 2,375 comparison) and was predominantly male (87%), White (75%), with an average age of 31. The 2016-2017 cohort included 5,763 individuals (3,153 intervention and 2,610 comparison) and was predominantly male (87%), White (70%), with an average age of 31. 

The primary data sources were administrative data from the Registered Apprenticeship programs 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 Registered Apprenticeship 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 Registered Apprenticeship 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 Registered Apprenticeship participants received significantly more in quarterly UI benefits than comparison group members three years after program exit, but did not find a statistically significant difference one year 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 Registered Apprenticeships, but other factors might also have contributed. 

Reviewed by CLEAR

April 2024