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Outcome mechanisms for improved employment and earnings through screened job training: Evidence from an RCT (Baird et al., 2021)

Review Guidelines

Absence of conflict of interest. 

Citation

Baird, M., Engberg, J., & Gutierrez, I. (2021). Outcome mechanisms for improved employment and earnings through screened job training: Evidence from an RCT. IZA Institute of Labor Economics (IZA DP No. 14435).

Highlights

  • The study's objective was to examine the impact of Career Pathways on employment and earnings outcomes.  
  • The study was a randomized controlled trial where adults were randomly assigned to a treatment group where they received the Career Pathways program, or to the control group where they did not receive any services. Using surveys and administrative data, the authors compared the outcomes of treatment and control group members. 
  • The study found no statistically significant relationships between program participation and employment and earnings outcomes. 
  • This study receives a high evidence rating. This means we are confident that any estimated effects would be attributable to Career Pathways and not to other factors. However, the study did not find statistically significant effects. 

Intervention Examined

Career Pathways

Features of the Intervention

The New Orleans Office of Workforce Development (OWD) created the Career Pathways program under a Workforce Innovation Fund (WIF) grant. The goal of the program was to train individuals in the high-demand industries of advanced manufacturing, health care, and information technology (IT). The program included classroom-based training that participants attended for 20 hours per week for two months. The program had an additional, optional two-month training to build on the skills in the first training. The OWD partnered with a community college, local firms, and other training providers to conduct the classroom-based training. After completion of the training, individuals could take tests to gain industry-based credentials. The program was designed to serve unemployed and underemployed adults interested in advanced manufacturing, health care, and IT industries. 

Features of the Study

The study was a randomized controlled trial conducted in New Orleans, Louisiana from 2016 to 2018. The authors recruited participants for the study and screened participants based on eligibility criteria including willingness to work, current employment status, drug testing, orientation attendance, and basic literacy. Eligible participants were randomly assigned to cohorts which were controlled for demographics based on age, annual income, employment status, and gender. The study included 20 cohorts across three career fields. The sample included 197 individuals in the treatment group, and 192 individuals in the control group. The treatment group received the intervention as designed, while the control group did not receive job training services and were not referred to other available programs. Data sources included surveys and social security databases. Employment data were collected quarterly from social security resources beginning in 2014 to provide sufficient baseline data and work history for study participants. The authors used statistical models to compare the outcomes of treatment and control group members.  

Findings

Employment

  • The study found no statistically significant differences in employment rates between the treatment and control groups.  

Earnings and wages

  • The study found no statistically significant differences in earnings  between the treatment and control groups.  

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 any estimated effects would be attributable to Career Pathways, and not to other factors. However, the study did not find any statistically significant effects. 

Reviewed by CLEAR

June 2024