Absence of conflict of interest.
Citation
Highlights
- The study's objective was to examine the net impact of twelve workforce development programs in Washington state on employment, earnings, and public benefits receipt outcomes. This profile focuses on the Workforce Investment Act (WIA)/ Workforce Innovation and Opportunity Act (WIOA) Adult program. The author investigated similar research questions for the net impact of other programs, the profiles can be found here:
- WIA/WIOA Dislocated Worker Program
- WIA/WIOA Youth Program
- Professional-Technical Education Programs
- Worker Retraining Program
- Basic Education for Adults Programs
- Integrated Basic Education and Skills Training (I-BEST) Programs
- Private Career School Programs
- Registered Apprenticeships
- Aerospace Training Programs
- WorkFirst Program
- Division of Vocational Rehabilitation (DVR) Program
- The study used a difference-in-differences design with a matched comparison group. Using administrative data, the author conducted statistical models to compare the outcomes of the program participants and the comparison group members one and three years after program exit.
- The study found that WIA/WIOA Adult program participation was significantly related to higher employment, higher earnings, and lower public benefits receipt.
- This study receives a moderate evidence rating. This means we are somewhat confident that the estimated effects are attributable to the WIA/WIOA Adult program, but other factors might also have contributed.
Intervention Examined
Workforce Investment Act (WIA)/Workforce Innovation and Opportunity Act (WIOA) Adult Program
Features of the Intervention
The Workforce Innovation and Opportunity Act (WIOA) Adult program, which succeeded its predecessor the Workforce Investment Act (WIA), is a workforce development program that serves job-ready adults across the United States, particularly low-income individuals. Intensive services provided for participants include career counseling, support services (e.g., childcare, transportation), and skills training. The participants can access training through training accounts in which individuals choose training providers and training types that are available within the program guidelines and meet their needs. WIOA took effect in 2014 and differs from WIA due to its enhanced coordination across workforce programs that are administered by regional Workforce Development Councils. This structure aims to increase participants' enrollment in multiple workforce programs. The present study focuses on the WIA/WIOA Adult programs in Washington state, noting that the study period coincided with the transition from WIA to WIOA. In Washington, the programs are overseen by the regional Workforce Development Councils in the state's twelve Workforce Development Areas.
Features of the Study
The study used a difference-in-differences design to examine the impact of WIOA/WIA Adult programs in Washington state on employment, earnings, and public benefits receipt outcomes. The author matched WIA/WIOA Adult 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 WIA/WIOA Adult program. The study sample included two cohorts. The 2014-2015 cohort included 3,630 individuals (1,844 intervention and 1,786 comparison) and was predominantly female (55%), White (60%), with an average age of 39. The 2016-2017 cohort included 10,811 individuals (5,575 intervention and 5,236 comparison) and was predominantly male (55%), White (61%), with an average age of 45.
The primary data sources were administrative data from the WIA/WIOA Adult 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 WIA/WIOA Adult program participants had significantly more quarterly hours worked than comparison group members at both one year and three years after program exit. However, the study found no significant differences in employment rate between the groups at one year or three years after program exit.
Earnings and wages
- The study found that WIA/WIOA Adult program participants had significantly higher hourly wages and higher quarterly earnings than comparison group members three years after program exit, but found no significant differences one year after program exit.
Public benefits receipt
- The study found that WIA/WIOA Adult 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 Adult program, but other factors might also have contributed.