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

32 Pages Posted: 14 Jun 2021

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.

JEL Classification: J24, J38, J64, M53

Suggested Citation

Baird, Matthew and Engberg, John B. and Gutierrez, Italo, Outcome Mechanisms for Improved Employment and Earnings Through Screened Job Training: Evidence from an RCT. IZA Discussion Paper No. 14435, Available at SSRN: https://ssrn.com/abstract=3865460

Matthew Baird (Contact Author)

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States

John B. Engberg

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States
412 683 2300 (Phone)

HOME PAGE: http://www.rand.org

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