We know more about programs that work to unlock economic mobility than ever before.
Key components of sectoral employment programs that make them effective, according to a 2020 paper by leading economists:
“Increasing the provision for valuable transferable sector-specific skills that are under-provided by employers . . . The close involvement of sectoral employment program staff with employers in targeted sectors may help staff to recognize the types of training that are under-provided because of poaching concerns but highly valued by employers.”
“Sector-focused training providers might be particularly attuned to changes in the demand for different skills in their targeted sectors. Thus, the programs may be able to redesign training offerings to speed up labor supply adjustments.”
“The provision of wraparound services, including life skills training and job placement and retention services. If employers in high-wage sectors do not generally consider candidates with the backgrounds of the typical sector-focused training program participants, even if they are potentially qualified for open positions, then such services may be essential for matching such disadvantaged candidates to appropriate jobs.”
Rigorous evaluations show that these intensive sectoral employment programs with strong employer partnerships create opportunity for low-income and BIPOC families.
Per Scholas Workforce Program (ActivateIT in Denver)
Intensive, tuition-free IT bootcamp, 15 to 18 weeks, with additional supports (resumes, job placement). Over 85% served in poverty, over 85% BIPOC.
Two rigorous randomized evaluations found it increases annual earnings 20% to 30%, two to six years after random assignment.
ActivateWork, right here in Denver, offers Per Scholas (one of 18 cities).
Source: Arnold Ventures
Photo Credit: Per Scholas
Year Up
Intensive, year-long workforce training & apprenticeship program for young adults ages 18 to 24 not in jobs or school full-time, with low incomes, focused on sectors with jobs in high demand.
Multiple large random evaluations show it increases earnings by 40%: new report shows lasting wage increases over five years.
Sources: Arnold Ventures, U.S. Department of Health & Human Services 2021 5-year evaluation
Photo Credit: Year Up
Project Quest
Comprehensive support & resources for low-income individuals (high focus in TX on Latina learners in healthcare sector) in occupational training programs at local community colleges, including certifications in high-growth sectors of the local economy.
A randomized evaluation found increased average annual earnings by $5,239 nine years after program entry.
Source: Economic Mobility Corporation
Photo Credit: Joanna Kulesza, The New York Times
Jewish Vocational Service (JVS) Boston Skills Training Program
Intensive 5.5 months of job training - technical skills training, job readiness workshops, basic skills support, case management, referrals to outside agencies, tax preparation assistance, long-term follow-up, and more; serves overwhelmingly unemployed or very low-income individuals.
A randomized evaluation showed increased annual earnings by 35% in the second year after random assignment.
Source: Public/Private Ventures
Photo Credit: JVS Boston
Wisconsin Regional Training Partnership (WRTP)
2–8-week training programs & placement based on employer requests or clear labor market needs; for this study: construction, healthcare, & manufacturing.
Study participants: almost 80% Black, almost 50% had convictions on their records.
A randomized evaluation showed increased earnings by 24% over two years.
Source: Public/Private Ventures
Photo Credit: WRTP | BIG STEP
Several other targeted, well-designed workforce development and postsecondary programs have been rigorously evaluated, and also shown to substantially increase wages or graduation rates.
Accelerated Study in Associate Programs (ASAP)
Comprehensive supports: financial assistance, advising, career counseling, tutoring, reformed remedial courses, for: first-generation students, students of color, and students in poverty.
Two randomized evaluations in NYC and OH both show it doubles graduation rates, and increases transfers to 4-year colleges by 50%.
Source: MDRC
Photo Credit: The City University of New York (CUNY)
Nevada Reemployment and Eligibility Assessment
Mandatory program for UI recipients costs less than $250 per participant; UI eligibility review, labor market information, individual reemployment plan, provision of reemployment services all at One-Stop Career Center in a single interview.
Two large randomized evaluations showed increased earnings by 18% over 1.5 years and 15% over 3 years.
Source: Arnold Ventures
Photo Credit: Employment Security Division, NV DETR
Jewish Vocational Service (JVS) Boston English for Advancement Program
Employment-focused language instruction, career coaching, job placement assistance; relatively less intensive, lower cost.
A randomized evaluation showed increased earnings by 15% in the second year after random assignment (once training was complete).
Source: Economic Mobility Corporation
Photo Credit: Leise Jones, Economic Mobility Corporation
The programs above show that a better future is possible. The status quo, however, will not be how we get there.
Job Training Under WIOA Often Doesn’t Boost Wages
Mathematica 2017 study: rigorous large-scale, randomized evaluation of the federal Adult and Dislocated Worker programs - authorized under the Workforce Innovation & Opportunity Act (WIOA) - included 28 sites across the U.S.
Two groups: only full-WIOA group was offered training, both offered core & other non-training services
Key finding: offering training through Adult & Dislocated Worker programs failed to demonstrate causal impact on earnings.
NOTE: some full-WIOA participants did not ultimately enroll in training, and some core-and-other-non-training participants enrolled in training using other funding sources. The lack of impact does not necessarily reflect training quality exclusively.