Toward More Valid Evaluations Of Training Programs Serving the Disadvantaged

Abstract

The paper challenges the widespread assumption that the wage effects of federal training programs are reliable and unbiased estimates of productivity effects and social benefits. Evidence is presented that the reputations of government training programs are unreliable and that employers stigmatize those eligible for TJTC and CETA OJT contracts. Graduates of classroom training programs which are known to be funded by JTP A are likely to be similarly stigmatized. TJTC eligibles are seriously underpaid by employers and JTPA graduates may experience a similar fate. Consequently, the true effects of JTP A on the productivity of disadvantaged workers may be considerably larger than its effects on wages. Methods of obtaining estimates of productivity effects are described.