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UNITED STATES DEPARTMENT OF LABOR

The 2021 net impact and cost-benefit evaluation of Washington state’s workforce development programs (Dula et. al, 2021)

Review Guidelines

Causal Evidence Guidelines

Absence of conflict of interest.

Citation

Dula, C. (2021). The 2021 net impact and cost-benefit evaluation of Washington state’s workforce development programs. Washington Workforce Training and Education Coordinating Board. [WIA/WIOA Dislocated Worker Program]

Highlights

Intervention Examined

Workforce Investment Act (WIA)/Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker Program

Features of the Study

The study used a difference-in-differences design to examine the impact of the Workforce Investment Act (WIA)/Workforce Innovation and Opportunity Act (WIOA) Dislocated Worker program in Washington state on employment, earnings, and public benefits receipt outcomes. The WIA/WIOA Dislocated Worker program is a workforce development program that provides employment supports and services for people who have been terminated, laid off, or have received notice of termination/lay off.  

The author matched Dislocated Worker program participants to similar nonparticipants using propensity scores developed from socio-demographic information. The comparison group members included individuals who registered to use Washington’s WorkSource employment centers and online job-search portals as part of the Wagner Peyser federal program, but did not participate in the Dislocated Worker program. The study sample included two cohorts. The 2014-2015 cohort included 4,732 individuals (2,430 intervention and 2,302 comparison) and was predominantly male (54%), White (73%), with an average age of 47. The 2016-2017 cohort included 2,055 individuals (1,035 intervention and 1,020 comparison) and was predominantly male (59%), White (67%), with an average age of 47. 

The primary data sources were administrative data from the Dislocated Worker program and Washington's WorkSource employment centers and online job-search portals. The author conducted statistical models to examine differences in outcomes between the intervention and comparison groups at one year and three years after program exit. Outcomes included employment rate, quarterly hours worked, hourly wage, quarterly earnings, and quarterly Unemployment Insurance (UI) benefits received.  

Findings

Employment

  • The study found that Dislocated Worker program participants had significantly higher employment rates and more quarterly hours worked than comparison group members one year after program exit. However, the study found no significant differences between the groups three years after program exit. 

Earnings and wages

  • The study found no significant differences between the groups in hourly wages or quarterly earnings at one year or three years after program exit. 

Public benefits receipt

  • The study found that Dislocated Worker program participants received significantly less in quarterly UI benefits than comparison group members three years after program exit, but did not find a statistically significant difference one year after program exit. 

Considerations for Interpreting the Findings

The study reports a less stringent statistical significance level, considering p-values of less than 0.10 to be significant, though it is standard practice to consider statistical significance if the p-value is less than 0.05. Only results that demonstrate a p-value of less than 0.05 are considered statistically significant in this profile.  

Causal Evidence Rating

The quality of causal evidence presented in this report is moderate because it was based on a well-implemented nonexperimental design. This means we are somewhat confident that the estimated effects are attributable to the WIA/WIOA Dislocated Worker program, but other factors might also have contributed. 

Reviewed by CLEAR

April 2024

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