Absence of conflict of interest.
Citation
Kanengiser, H., & Schaberg, K. (2022). Employment and earnings effects of the WorkAdvance demonstration after seven years. March. New York: MDRC. [Bronx Site – Per Scholas]
Highlights
- The study's objective was to examine the long-term impact of WorkAdvance on employment and earnings for adults who were unemployed or earning low wages.
- The study was a randomized controlled trial that assigned individuals across four sites to either the WorkAdvance (treatment) group or to a control group. The primary data source was administrative data on employment and earnings from the National Directory of New Hires (NDNH). The authors used a statistical model to compare the outcomes of the treatment and control group members.
- The study found that, seven years after random assignment, study participants in the Bronx site who were assigned to the WorkAdvance intervention had higher average earnings, compared to individuals who were assigned to the control group.
- The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to WorkAdvance, and not to other factors.
Intervention Examined
WorkAdvance
Features of the Intervention
WorkAdvance was informed by prior research on sectoral strategies. Programs that employ a sectoral strategies approach aim to train individuals for high-quality jobs in specific industries or occupational clusters with robust local demand and opportunities for career progression. WorkAdvance also incorporated insights from earlier studies on job retention and career advancement strategies. WorkAdvance aimed to expand on these existing findings by investigating whether sector programs emphasizing career advancement could serve as a pathway to upward mobility for individuals with low incomes.
The WorkAdvance program model has five main components: 1) intensive screening, 2) career-readiness services, 3) occupational skills training leading to a credential, 4) job development and placement, 5) retention and advancement services.
Features of the Study
The study was a randomized control trial that assigned individuals across four sites to either the WorkAdvance program group or a control group. Individuals assigned to the control group had the option to enroll in other community services. The WorkAdvance intervention was delivered by distinct local organizations at four study sites: Per Scholas in the Bronx, New York; St. Nicks Alliance in Brooklyn, New York; Madison Strategies Group in Tulsa, Oklahoma; and Towards Employment in northeast Ohio. The study examined the impact of WorkAdvance programs separately for each site, and in a pooled analysis that combined participants from all sites. This study profile summarizes findings from the Bronx site. Findings from other sites and from the pooled analysis are reported in separate study profiles.
For the analysis of the Bronx site, the sample included 349 participants who were randomly assigned to participate in the WorkAdvance program delivered by Per Scholas, and 341 participants who were randomly assigned to the control group. Per Scholas is a nonprofit organization that provides information technology (IT) training and employment services in New York City.
WorkAdvance targeted adults who were either unemployed or earning low wages (less than $15 per hour), with family incomes below 200 percent of the federal poverty level. At the Bronx site, study participants were, on average, 31 years old and were predominantly male (87 percent). At baseline, 30 percent of study participants in the Bronx had already obtained a postsecondary degree, and 13 percent were employed. Among participants at the Bronx site, 36 percent identified as Hispanic/Latino, 44 percent identified as Black, non-Hispanic, 5 percent identified as white, non-Hispanic, and 9 percent identified as Asian/Pacific Islander, non-Hispanic. At baseline, 10 percent of participants at the Bronx site reported that they had a prior criminal conviction.
The primary data source used was administrative data on employment and earnings from the NDNH. This dataset provided insights into the long-term economic outcomes of study participants, collected seven years after random assignment. This extended follow-up period aimed to assess whether the WorkAdvance programs led to sustained career advancements beyond initial job placements. The study had two pre-specified confirmatory outcomes: 1) total annual earnings in year seven following random assignment; and 2) the share of individuals with earnings of $40,000 or more in year seven following random assignment.
The authors utilized a statistical model to compare the long-term outcomes of individuals assigned to the treatment and control groups.
Findings
Earnings and Wages
- The study found that, in the Bronx site, individuals assigned to the WorkAdvance group earned $4,844 more on average than individuals assigned to the control group, seven years after random assignment.
- In the Bronx site, the study did not detect any statistically significant association between assignment to the WorkAdvance intervention and an individual’s likelihood of earning $40,000 or more, earning $30,000 or more, or earning $20,000 or more, seven years after random assignment.
Employment
- In the Bronx site, the study did not detect any statistically significant association between assignment to the WorkAdvance intervention and an individual’s likelihood of being employed in year seven after random assignment.
Considerations for Interpreting the Findings
WorkAdvance intervention impacts on year-seven average earnings varied across study sites. The Bronx – Per Scholas site was the only site in which favorable and statistically significant impacts on year-seven earnings were detected.
Causal Evidence Rating
The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to WorkAdvance, and not to other factors.