Citation
Hollenbeck, K., & Huang, W-J. (2006). Net impact and benefit-cost estimates of the workforce development system in Washington State. Upjohn Institute technical report no. TR06-020. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. [Community and Technical College Job Prep Training]
Highlights
- The study’s objective was to examine the impact of the Community and Technical College (CTC) Job Preparatory Training program on the employment rate, earnings, and public benefit receipt of adults in Washington State.
- The authors used a nonexperimental design to compare the short-term (3 quarters after program exit) and long-term (9 to 12 quarters after program exit) employment, earnings, and public benefit receipt between those who took part in the CTC training program and those who registered for employment services at the state Labor Exchange.
- The study found that, compared with those who registered for services at the Labor Exchange, participants in the CTC training program had higher employment and earnings, although findings for public benefit receipt were mixed.
- The quality of causal evidence presented in this report is low because the authors compared the treatment and comparison groups at different follow-up points and the groups were therefore not equivalent. This means we are not confident that the estimated effects are attributable to the CTC Job Preparatory Training program; other factors are likely to have contributed.
- This study also examined the effectiveness of other workforce development programs. Please click here to find CLEAR profiles of those studies.
Intervention Examined
Community and Technical College (CTC) Job Preparatory Training Program
Features of the Intervention
The CTC Job Preparatory Training program extended the mission of community and technical colleges to provide applied training for technical occupations that typically do not require a bachelor’s degree. The program was available to all high school graduates and those ages 18 and older. It was offered in every county of Washington State.
Features of the Study
The authors used a nonexperimental statistical procedure called propensity-score matching to create a comparison group of people who registered for services at the Labor Exchange and were similar to CTC training participants in terms of gender, race, ethnicity, age, educational attainment, location, and employment history. The authors collected Unemployment Insurance records for those who had exited a CTC training program or Labor Exchange from July 2001 to June 2002 to estimate the long-term impacts of the CTC training program in quarters 9 to 12 after program exit. The authors also collected Unemployment Insurance records for those who exited CTC training or Labor Exchange from July 2003 to June 2004 to estimate the short-term impacts in the 3 quarters following program exit. The 25,463 CTC training participants who exited in 2001–2002 were matched to a sample of 16,973 comparison group members, which was drawn from the 179,583 adults who registered at the Labor Exchange. The 25,023 CTC training participants who exited in 2003–2004 were matched to a sample of 15,407 comparison group members, which was drawn from the 151,842 adults who registered at the Labor Exchange. The authors then compared the employment, quarterly hours worked, quarterly earnings, hourly wages, and public benefits receipt of the CTC training and comparison groups before and after participation. Program participants were on average 31 years old; 56 percent of participants were female and about one-quarter were minorities.
Findings
Employment
- The authors reported that, compared with those who registered for services at the Labor Exchange, the percentage of quarters employed for those who took part in the CTC training program increased by 9.2 percentage points more 3 quarters after program exit and by 6.7 percentage points more 9 to 12 quarters after program exit. The average number of hours worked increased for those who participated in the CTC training program, with an average increase of 71.3 hours 3 quarters after program exit and 39.7 hours 9 to 12 quarters after program exit.
Earnings
- The authors reported that average quarterly earnings increased for those who took part in the CTC training program compared with those who registered at the Labor Exchange, with an average increase of $1,423 3 quarters after program exit and $917 more 9 to 12 quarters after program exit. The hourly wage also increased for the CTC training group, with an average increase of $2.95 per hour 3 quarters after program exit and $1.87 per hour 9 to 12 quarters after program exit.
Public benefits receipt
- The authors reported that, compared with those who registered with the Labor Exchange, the percentage of CTC training participants receiving Unemployment Insurance, Temporary Assistance for Needy Families (TANF) benefits, food stamps, and enrolling in Medicaid decreased (by 1.2, 0.5, 4.1, and 3.0 percentage points more, respectively) 3 quarters after program exit. The amount of TANF benefits and food stamps received also decreased by $11.3 and $28.20, respectively, 3 quarters after program exit, compared with the Labor Exchange group. The percentage of CTC participants who received Unemployment Insurance decreased by 2.7 percentage points 9 to 12 quarters after program exit, and the amount received decreased by $15.70. In the same time period, the percentage receiving TANF benefits increased by 0.6 percentage points and the amount of TANF benefit and food stamps received increased by $13.60 and $12.10, respectively.
Considerations for Interpreting the Findings
Although the authors accounted for many characteristics of the treatment and comparison groups in their analysis, the decision to define the groups based on their date of program exit rather than program entry is problematic. For example, if the average length of participation was 6 months for the CTC training group compared with one month for the Labor Exchange group and we compared the groups’ earnings 6 months after their recorded exit dates, we would see CTC training participants’ earnings about 12 months after they started receiving services and Labor Exchange participants’ earnings about 7 months after they started receiving services. If everyone stayed on their original upward-sloping wage trajectory, it would appear as though the CTC training participants earned more 6 months after their exit dates. However, this would not be attributable to receiving CTC training; it would be caused by the difference in elapsed time across the groups (12 months for CTC training participants versus 7 months for Labor Exchange participants). Therefore, studies defining the groups based on exit date instead of entry date without accounting for program length can receive only a low evidence rating.
Causal Evidence Rating
The quality of causal evidence presented in this report is low because the authors compared the treatment and comparison groups at different follow-up points, and the groups were therefore not equivalent. This means we are not confident that the estimated effects are attributable to the CTC Job Preparatory Training program; other factors are likely to have contributed.
Additional Sources
Hollenbeck, K. (2011). Short-term net impact estimates and rates of return. In D.J. Besharov & P.H. Cottingham (Eds.), The Workforce Investment Act: Implementation experiences and evaluation findings (pp. 347-370). Kalamazoo, MI: W.E. Upjohn Institute for Employment Research.