A Benefit-Cost Analysis of the Neighborhood Youth Corps: The Out-Of-School Program in Indiana

Michael E. Borus, John P. Brennan and Sidney Rosen

Journal of Human Resources, 1970, vol. 5, issue 2, 139-159

Abstract: Earnings of 604 participants in Neighborhood Youth Corps programs in five urban areas of Indiana and of 166 eligible nonparticipants (the control group) were examined in this study. On the basis of cost data and regression analyses of 1967 earnings, the following conclusions were reached: (1) The earnings gain as a result of NYC participation is substantial for males and high benefit-cost ratios are obtained by society. Thus the NYC program is much more than an "aging vat" for male participants. (2) Female participants, however, increase their post-program earnings very little and their benefit-cost ratios for society are almost always below one. (3) High school dropouts benefit more from the program than do graduates from high school. Therefore the program should continue to serve dropouts primarily. (4) The longer the participants remain in the NYC, the greater are the increases in post-program earnings. It appears, therefore, that if society wishes to increase the earnings of individual participants, the optimum strategy is to encourage early dropouts to remain in the program as long as possible.

Date: 1970
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