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Open Access

Does Federally Funded Job Training Work?

Nonexperimental Estimates of WIA Training Impacts Using Longitudinal Data on Workers and Firms

Fredrik Andersson, Harry J. Holzer, Julia I. Lane, David Rosenblum and View ORCID ProfileJeffrey Smith
Journal of Human Resources, July 2024, 59 (4) 1244-1283; DOI: https://doi.org/10.3368/jhr.0816-8185R1
Fredrik Andersson
Fredrick Andersson is at Bank of America.
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Harry J. Holzer
Harry J. Holzer is at Georgetown University and the American Institutes for Research.
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Julia I. Lane
Julia I. Lane is at New York University and the Coleridge Initiative.
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David Rosenblum
David Rosenblum is at the U.S. Department of Labor.
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Jeffrey Smith
Jeffrey Smith is at the University of Wisconsin, NBER, IZA, CESifo, and HCEO ().
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Abstract

We study the effect of U.S. Workforce Investment Act (WIA) training in two states using matched employer–employee data. This allows us to estimate the impact of training on firm characteristics and to assess the value of firm characteristics measured prior to training as conditioning variables. We find moderate positive impacts of training on employment and earnings for adults, but not for dislocated workers. We find limited evidence of positive effects on firm characteristics for adults in one state, but clear evidence of effects on industry of employment for most groups. Firm characteristics add little value as conditioning variables.

JEL Classification:
  • I38
  • J08
  • J24
  • Received August 1, 2016.
  • Accepted January 1, 2022.

This open access article is distributed under the terms of the CC-BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0) and is freely available online at: https://jhr.uwpress.org.

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Journal of Human Resources: 59 (4)
Journal of Human Resources
Vol. 59, Issue 4
1 Jul 2024
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Does Federally Funded Job Training Work?
Fredrik Andersson, Harry J. Holzer, Julia I. Lane, David Rosenblum, Jeffrey Smith
Journal of Human Resources Jul 2024, 59 (4) 1244-1283; DOI: 10.3368/jhr.0816-8185R1

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Does Federally Funded Job Training Work?
Fredrik Andersson, Harry J. Holzer, Julia I. Lane, David Rosenblum, Jeffrey Smith
Journal of Human Resources Jul 2024, 59 (4) 1244-1283; DOI: 10.3368/jhr.0816-8185R1
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  • Article
    • Abstract
    • I. Introduction
    • II. The WIA Program
    • III. Data
    • IV. Treatment and the Parameter of Interest
    • V. Identification and Estimation
    • VI. Results: Determinants of Training Receipt
    • VII. Results: Impacts on Earnings and Employment
    • VIII. Results: Firm Characteristics
    • IX. Results: Alternative Identification Strategies
    • X. WIA Costs and Benefits
    • XI. Conclusions
    • Acknowledgments
    • Footnotes
    • References
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Keywords

  • I38
  • J08
  • J24
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