There is no conflict of interest.
Citation
McConnell, S., Schochet, P. Z., Rotz, D., Fortson, K., Burkander, P., & Mastri, A. (2021). The effects of employment counseling on labor market outcomes for adults and dislocated workers: Evidence from a nationally representative experiment. Journal of Policy Analysis and Management, 40(4), 1249-1287. https://doi.org/10.1002/pam.22305
Highlights
- The study's objective was to examine the impact of Adult and Dislocated Worker Program Intensive Services on employment and earnings.
- The study used a randomized controlled trial that assigned program participants to the treatment group (received core and intensive services) or the control group (received core services only). Using survey and administrative data, the authors conducted statistical models to compare the outcomes of treatment and control group members.
- The study found that the treatment group had significantly more earnings over 10 and 12 quarters and were significantly more likely to be employed 35 hours or more per week than the control group.
- This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to Adult and Dislocated Worker Program Intensive Services, and not to other factors.
Intervention Examined
Adult and Dislocated Worker programs
Features of the Intervention
Adult and Dislocated Worker programs are among the largest federally funded initiatives in the United States, designed to help job seekers find meaningful employment. These programs assist millions of eligible individuals, mainly focusing on English-speaking adults who have a high school diploma. All participants are eligible for core services, which provide labor market information and online tools for employment planning and career development. In addition to core services, the programs offer intensive services. These include personalized support such as assessments, case management, career counseling, referrals to additional services, and workshops. Some participants may also receive training and supportive services, such as skills training, on-the-job training, basic education, transportation assistance, and childcare.
Features of the Study
The study was a randomized controlled trial conducted across 28 localities in 19 states. Local area staff randomly assigned 4,361 eligible individuals within the randomly selected local areas to research groups. There were 2,181 participants in the treatment group and 2,180 participants in the control group. Participants in the treatment group had access to both core and intensive program services, while participants in the control group could only access the core program services. The majority of the analysis sample were women (61%), under the age of 51 (83%), from a racial or ethnic minority (44% Black, non-Hispanic and 12% Hispanic), spoke English as a primary language (95%), were unemployed at the time of random assignment (98%), and had a high school diploma or GED (70%). Data sources included study registration forms, follow-up surveys conducted via telephone at 15 and 30 months after randomization, and administrative data from the National Directory of New Hires (NDNH). The authors used statistical models to compare outcomes between the treatment and control group members.
Findings
Earnings and wages
- The study found that the core and intensive services group had significantly more earnings over 10 and 12 quarters compared to the core services group.
Employment
- The study found that the core and intensive services group was significantly more likely to be employed 35 or more hours per week than the core services group.
Considerations for Interpreting the Findings
The study authors note that results should be interpreted within the context of reduced funding and high unemployment rates, as the data were collected during the major recession of 2008. Also, 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 high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to Adult and Dislocated Worker Program Intensive Services, and not to other factors.