Outcome Mechanisms for Improved Employment and Earnings through Screened Job Training: Evidence from an RCT

Matthew Baird (), John Engberg () and Italo A. Gutierrez ()
Additional contact information
Matthew Baird: RAND
John Engberg: RAND Corporation
Italo A. Gutierrez: Amazon

No 14435, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This study fills a gap in the literature on the outcome mechanisms in which successful training programs improve employment and earnings, such as raises on the job or longer job duration. The city of New Orleans implemented a job training program as an RCT for low-income workers. Individuals in the treatment group were more likely to work in the target industries and move out of low-skill industries. In the first 9 months after training, the treatment group experienced higher earnings with new employers and with existing employments. After 9 months, the effects were driven by higher probability of staying with an employer (with now-higher earnings). Findings encourage patience on the part of trainees and the government, as workers may not find their stable, target employment immediately. Government may also want to find ways to improve early connections with employers after training.

Keywords: job training; RCT; disadvantaged workers (search for similar items in EconPapers)
JEL-codes: J24 J38 J64 M53 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2021-06
New Economics Papers: this item is included in nep-lma
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