Indiana University SPEA Edward J. Bloustein School of Planning and Public Policy University of Pennsylvania AIR American University

Panel Paper: Does Federally-Funded Job Training Work? Non-Experimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms

Friday, November 13, 2015 : 10:35 AM
Orchid A (Hyatt Regency Miami)

*Names in bold indicate Presenter

Jeffrey Smith, University of Michigan
We study the job training provided under the Workforce Investment Act (WIA) to adults and dislocated workers in two states. Our substantive contributions center on impacts estimated non-experimentally using administrative data. These impacts compare WIA participants who do and do not receive training. In addition to the usual impacts on earnings and employment, we link our state data to the Longitudinal Employer Household Dynamics (LEHD) data at the U.S. Census Bureau, which allows us to estimate impacts on the characteristics of the firms at which participants find employment. We find moderate positive impacts on employment, earnings and desirable firm characteristics for adults, but not for dislocated workers. Our primary methodological contribution consists of assessing the value of the additional conditioning information provided by the LEHD relative to the data available in state Unemployment Insurance (UI) earnings records. We find that value to be zero.