Earnings Progression Among Workforce Development Participants: Evidence from Washington State

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Earnings Progression Among Workforce Development Participants: Evidence from Washington State

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2011-11

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This research measures earnings progression among participants in federally funded Workforce Investment Act (WIA) programs in the state of Washington during the period 2001-2008, compared to that among participants in less intensive workforce services. Unlike previous evaluations that have emphasized earnings levels, this study addresses earnings progression in order to assess whether workers reach economic self-sufficiency within a short time after program participation. Using merged administrative data from the Unemployment Insurance system and the state's Services, Knowledge and Information Exchange System for workforce management, the question addressed by this research is: What is the difference in earnings progression between individuals in Washington who have received services from WIA Title I-B Adult training, intensive, or core programs and those who received services from only the Labor Exchange program? The primary method used to address this question is averaged individual-level ordinary least squares regressions weighted according to propensity scores to help account for self-selection into the treatment. The analysis finds that participants in the WIA Adult program had similar earnings progression as individuals in the less intensive program, Labor Exchange.