Job Training Programs for Dislocated Workers: The Positive Effects of the Workforce Innovation and Opportunity Act
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Date
2016-12
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Abstract
There has been a substantial amount of research the past several decades measuring
the effectiveness of federally subsidized Department of Labor (DOL) programs to assist the
unemployed. However, there is little to no research yet evaluating the most recent renewal of
programs as defined by the Workforce Innovation and Opportunity Act (WIOA) of 2014. This paper
measures the WIOA’s effectiveness in helping dislocated workers who have obtained new skills,
training, or education - a critically important opportunity for those who have experienced a job
separation. The analysis uses probit to predict the probability of workers entering employment
after training and propensity score matching on observational data to approximate an experimental
setup. The matched data are then used in estimating the change in earnings conditional upon finishing
training. The results are positive and statistically significant in support of the hypothesis that WIOA services help the unemployed to upgrade their skills and improve their prospects in the workforce.
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Keywords
job training, dislocated workers, workforce investment and opportunity act, WIOA