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Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance

Lawrence Katz, Jonathan Roth, Richard Hendra and Kelsey Schaberg

No 28248, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the evidence from randomized evaluations of sector-focused training programs that target low-wage workers and combine upfront screening, occupational and soft skills training, and wraparound services. The programs generate substantial and persistent earnings gains (11 to 40 percent) following training completion. Theoretical mechanisms for program impacts are explored for the WorkAdvance demonstration. Earnings gains are generated by getting participants into higher-wage jobs in higher-earning industries and occupations not just by raising employment. Training in transferable and certifiable skills (likely under-provided from poaching concerns) and reductions of employment barriers to high-wage sectors for non-traditional workers appear to play key roles.

JEL-codes: J24 J38 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-hrm, nep-lma and nep-ltv
Note: LS
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Published as Lawrence F. Katz & Jonathan Roth & Richard Hendra & Kelsey Schaberg, 2022. "Why Do Sectoral Employment Programs Work? Lessons from WorkAdvance," Journal of Labor Economics, vol 40(S1), pages S249-S291.

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