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Going, Going...Gone? Workforce Development Programs for the Poor Since the War on Poverty

Going, Going...Gone? Workforce Development Programs for the Poor Since the War on Poverty. Harry J. Holzer Georgetown University June 2012. Outline. Beginnings: Employment and Training in the War on Poverty CETA: The High-Water Mark

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Going, Going...Gone? Workforce Development Programs for the Poor Since the War on Poverty

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  1. Going, Going...Gone? Workforce Development Programs for the Poor Since the War on Poverty Harry J. Holzer Georgetown University June 2012

  2. Outline • Beginnings: Employment and Training in the War on Poverty • CETA: The High-Water Mark • JTPA and WIA: Devolving Programs, Shrinking Funding, Changing Labor Market • Beyond WIA: Important New Developments • Evaluation Evidence: What Works? • Conclusion

  3. Beginnings: E and T in the War on Poverty • Before War on Poverty: MDTA, Response to Fears of Automation and Structural Unemployment • New Focus: Poor/Minorities • What was Done: 1) Job Corps; 2) Others: NYC, WIN, JOBS….$2B by end of LBJ years • Based on Little Evidence or Understanding • Opposition to Broader Program, but acknowledgement of diverse needs – Jobs as well as Skills

  4. CETA: The High-Water Mark • Training: Classroom, OJT, subsidized work –Directly Funded by federal government • PSE Funding: First Countercyclical, then Structural (aimed at Disadvantaged) – Up to 2M by late 1970s • Other direct job creation: TJTC • Focus on Youth (YEDPA, YIEPP) and minorities • Funding: $18B (current $)

  5. JTPA and WIA Years • JTPA: 1982; WIA: 1998; Not Reauthorized • Declining Funds (to $5B) • Devolution and Reorientation • Growing Doubts, Changing Economy

  6. Doubts and Changing Economy • Doubts about Cost-Effectiveness of Training and DJC • Changing Economy: Growing Returns to Education and Achievement, and awareness of gaps – Training seen as weak substitute • Also: Support for Work Incentives, Worker Institutions – Little support from Left or Right

  7. Devolution and Reorientation of JTPA and WIA • Elimination of PSE • Less Long-Term Training, More Services • More Universal – Less Disadvantaged • Employers – Dual Customer Focus • More Decentralized Structure – Local PICs and WIBs • Worker Choice (ITAs) • Dislocated as well as Disadvantaged

  8. Beyond WIA • Shift from D of L to D of ED • Pell Grants! Now $35B – Much for Independent Students doing Vocational Education - But Few Services/Guidance and Low Completion Rates • Also: CTE, School to Work… • Remediation: I-BEST • TAACCCT and Other Grant Programs

  9. Beyond WIA (Cont’d) • Sectoral Training: States and NFWS – Benefits to the Disadvantaged? • Incumbent Worker Training: States • Hard to Employ: Disconnected Mothers,Ex-Offenders and NCPs • ARRA: One-Time Increase

  10. Evaluation Evidence • Huge Literature! • Experimental and Non-Experimental Approaches • JTPA, WIA v. Other Efforts • Very Different Populations, Programs • Training v. Direct Job Creation

  11. JTPA and WIA • JTPA: National JTPA Study – Modest Effects for Adults (Women v. Men), Nothing for Youth, Fadeout • WIA: Nonexperimental (Heinrich et al., Andersson et al.) – Modest Effects for Adults, Little Fadeout so far

  12. Sectoral Programs • PPV Study – Large Impacts, 2 Years Later • Year Up – Similar for Youth • Remaining Questions… • Caution: CET in San Jose v. Replication

  13. Other Populations and Approaches • Welfare Recipients: NEWWS, etc. • Youth: Job Corps (Youth Build, YSCC); ChalleNGe, Youth Opportunities for out of school; Career Academies for in-school • Hard to Employ: Transitional Jobs • Community Colleges: Opening Doors (I-BEST)

  14. Direct Job Creation • Expense, Substitution, Post-Program Impacts? • Results: Net Job Creation if carefully targeted; Post-Program Impacts only if intensive (NSW, TJ) • Tax Credits: TJTC, WOTC – Limited impact, little post-program (Hamersma) • Youth: YIEPP

  15. Conclusion • Small Effects from Small Programs • One Size Doesn’t Fit All! • Sectoral Programs • Hard to Employ: TJs, finanicial incentives and supports • Youth: Paid Work Experience, Hi-quality CTE as pathway to Labor Market and/or Postsecondary Ed. • Not Just Higher Ed – Integration of Higher Ed and Workforce and Closer Alignment with Labor Demand

  16. We’ve Learned Much Since War on Poverty… • Original Insights • Much Learned from Program Evolution and Experimentation/Evaluation • Deserves More Funding and Support, but with Realistic Expectations

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