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Employment Programs; Federal Programs; Job Training That DOCUMENT RESUME ED 241 725 CE 038 465 AUTHOR; Mailer, Charles; And Others TITLE Evaluation of the Economic Impact of the Job Corps Program. Third Follow-up Report. INSTITUT:ON Mathematica Policy Research, Princeton, N.J. SPONS AGENCY Employment and Training Administration (DOL), Washington, D.C. Office of Policy, Evaluation and Research. PUB DATE Sep 82 CONTRACT 23-34-76-06 NOTE 309p.; For related documents, see ED 203 060-061 and ED 206 865. PUB TYPE Reports - Evaluative/Feasibility (142) EDRS PRICE MF01/PC13 Plus Postage. DESCRIPTORS *Cost Effectiveness; *Economically Disadvantaged; *Employment Programs; Federal Programs; Job Training *Program Effectiveness; Youth Problems; *Youth Programs IDENTIFIERS *Economic Impact; *Job Corps ABSTRACT This.report presents data and findings on the economic impact of Job Corps on its participants and analyses of the program's benefits in relation to its costs. Findings are based on postprogram experience of individuals enrolled in the`Job Corps in 1977, compared to a group of disadvantaged youth not in the program. The first three chapters introducei the rep'ort, review the Job Corps program and the evaluation, and discuss the estimation procedures used in the data analysis underlying subsequent chapters. Chapters .4 through 7 present the empirical findings on whether Job Corps is successful in (1) increasing employment and earnings; (2) improving future labor market opportunities through higher education, military training, and other human capital activities; (3) reducing dependence on welfare assistance and other public transfers; and 14) reducing criminality among former Corps members. The comparative evaluationlbf Job Corps benefits and costs is summarized in chapter 8. Chapter 9 examines issues pertaining to drawing general inferences about Job Corps from the existing data and discusses the'generalizability of the findings. Chapter 10 offers some concluding remarks. It confirms that JobCorps had a positive and sizable impact on participants and that its economic benefits for society are greater thanits costs. (YLB) *************************************1********************************* * Reproductions supplied by EDRS are the best that can be made * * ,. from the original document. * *********************************************************************** tin Contract Number 23-34-76-06 . (NJ r- Authors: Charles Mallar r-4 Stuart Kerachsky Craig Thornton C\I David 'Long LL.1 Editor: Thomas Good Research Assistants: Kwo-Long Lai Gary Labovich PROJECT REPORT EVALUATION OF THE ECONOMIC-IMPACT OF THE JOB CORPS PROGRAM THIRD FOLLOW-UP REPORT SEPTEMBER 1982 Prepared for: Office of Pdlicy Evaluation and Research Employment and Training Adm1 istration U.S. Department of Labor Washington, D.C. 20213 Prepared by: 1.1 R. DEPARTMENT OF EDUCATION NATIONAL INSTITUTE OF EDUCATION r Dto A Id 0.611 4I SitilH. I'. e4P 4111MA 11(1 Mathematics Policy Research, Inc. It'0144tm P.O. Box 2393 Princeton, New Jersey 08540 , THIS REPORT WAS PREPARED UNDER A CONTRACT WITH THE OFFICE OF POLICY EVALUATION AND RESEARCH OF THE EMPLOYMENT AND TRAINING ADhIN;STRAT/ON, U.S. DEPARTMENT OF LABOR. ORGANIZATIONS UNDER- TAKING SUCH PROJECTS UNDER GOVERNMENT SPONSORSHIP ARE ENCOURAGED TO STATE THEIR FINDINGS AND EXPRESS THEIR JUDGMENTS FREELY. THEREFORE, POINTS OS VIEW OR OPINIONS STATED DO NOT NECESSARILY REPRESENT THE OFFICIAL POSITION OF THE DEPARTMENT OF LABOR. 41. EXECUTIVE SUMMARY THIRD FOLLOW-UP REPORT OF THE EVALUATION OF THE ECONOMIC IMPACT OF THE JOB CORPS PROGRAM 4 ti This is the third fellow-up report of a study designed to provide the Department of Labor with a comprehensive evaluation of the economic impact of the Job Corps program, a program that provides economically disadvantaged youths between 16 and 211 years of age with basic education, vocahtional training, and related services in a residential setting in an attempt to help the youths become more productive workers, improve their lifetime earnings prospects, and, help them become more responsible citizens. The report addresses three major issues: (1) the short-term economic impact of Job Corps on program participants, (2) the longevity of these program effects, and (3)'whether the benefits of Job Corps outweigh the costs of the program. The information provided in this report is based on the most comprehensive data yet available to conduct a study on Corpsmembers. The first detailed personal interviews were conducted in the spring of 1977 with a sample of Corpsmembers thenparticipatiigin the program and with a comparable group of disadvantaged youths who had not attempted to enroll in Job Corps. At periods 9, 244 and, most recently, 54 months after the ',baseline survey, reinterviews were conducted with all of the youths in the comparison group and With Corpsmembers who had been out of the program for a sufficient length of time to provide the needed postprogram information. The baseline survey obtained detailed information on the demo- graptic characteristics of the youths, their socio-economic backgrounds, and their work histories and related activities beginning 6 months before the Corpsmembers enrolled in the program and continuing up to the date of . \\ the interview, which, on average, represented approximately 6 Months of program ekperience. The three follow-up surveys continued to collect detailed information on work histories and related activities dUring the postprogram period after Corpimembers had been out of the program from 42 to 54 months altogether. The fourth survey (the third follow-up interview) provides the new information for this resort. Occurring nearly two and one-half years'after the second follow-up survey, this third follow-up greatly extends the postprogram observation period, thereby yielding the most comprehensive data set y t available to conduct a study on the postprogram behavior of Corpsmember,. The third fallow-up survey increases the average length of observed postprogram experiences for Corpsmembers from just over 18 months to nearly 48 monthsmore than doubling the length of the postprogram observation peribd. Over 3,900 youths were interviewed for the third follow-up, which represents nearly TO percent of the baseline observitions and just over 90,percent of the second follow-up observations. Altogether, the data base for this evaluation contains both baseline and some follow-up data on approximately 5,200 youths. On average, from the information obtained in the baseline survey through the second folloi-up, Job Corps was found to be successful in the short term at achieving its primary objective - -to improve the economic prospects of Corpsmembers. However, the usefulness'of this finding was severely constrained by the short/length of the postprogram observation periodbetween.12 and 24 months, with an average per Corpsmember of approximately 18 months. The estimated time trend in participant impacts over the first two postprogram years showed a rapid increase in employment and related benefits for Corpsmembers during the first few months after 11 5 leaving Job Corps and then relatively ,opstant effects throughout the remainder of two-year period. Little, if anything, was known about the economic impact of Job Corps on participants after the second postprogram year. On the one hand, it was thought that the effects might decline, as had previously been found for some adult employment and training programs. Op the other hand, it was thought that the effects might grow furtherover time--especially for a youth program such as Job Corps, which, by causing participants to increase postprogram investments in human capital (e.g.,.there were observed * increases in postsecondary education and military service), could lead to future increases in earnings. With the additional follow-up data, we now 9. have a unique opportunity (i.e., a sufficient sample oven four postprogram years) to obtain empirical evidence on the duration of Job Corps benefits beyond the second postprogram year. The findings covered in this report are based on estimates of the differences between the postprogram behavior of Corpsmembers and what their behavior would have been had they not participated in Job Corps (which includes some amount of alternative education,, training, and work experience that they forego in.."favor of participating in Job Corps). The most important of these findings can be highlighted as follows: 1. The estimated effects of Job Corps on former participants' postprogram behavidr are generally consistent with hypothe- sized economic impacts and the important program goal of improving Corpsmembers' economic prospects. During the first four postprogram years, we find that Job Corps is at least moderately successful overall in achieving its desired effects: (1) increasing employment and earnings, (2) improving rutdre labor-market opportunities through' work experienci, military service, higher education and training, better health, and geographic mobility, (3) reducing dependence on welfare assistance and other public transfers, and (4) reducing criminality. iii 6 2. In terms of size and statistical significance, some of the. most noteworthy effects of Job Corps on the behavior of former participants are (on t per-Corpmmember basis, including military jobs, and averaged over the four-year observation period, see further in Table 1): o an Increase in employment of over three weeks per year o an- increase in earnings of approximately $655 per year and overa 15 percent increase (controlling for npnlinear trends) o a very substantial
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