Skip Navigation
| Skip Navigation |
|
|
|
|
|
The Congress is considering proposals to replace the Comprehensive Employment and Training Act (CETA), which expires at the end of fiscal year 1982. This paper, requested by the Senate Budget Committee, describes current CETA training programs and analyzes their effects on the post-program earnings of adult participants.
Howard S. Bloom of the National Commission for Employment Policy (on leave from Harvard University) and Maureen A. McLaughlin of the Congressional Budget Office prepared this paper. Howard Bloom was principally responsible for Chapter III and the appendixes; Maureen McLaughlin was principally responsible for Chapters II and IV. The paper was written under the supervision of Nancy M. Gordon, Martin D. Levine, Daniel H. Saks, and Ralph E. Smith. In addition, Burt S. Barnow, Seymour Brandwein, Daniel M. Koretz, Michael J. McKee, Larry L. Orr, Bruce Vavrichek, Ronald S. Warren, and John M. Yinger provided helpful comments. Carl P. Schmertmann and T. Scott Thompson provided invaluable computer assistance. Francis Pierce edited the paper. Rosetta Swann typed the drafts and prepared the paper for publication.
In accordance with CBO's mandate to provide objective and impartial
analysis, this paper contains no recommendations.
| Kenneth M. Smith | Alice M. Rivlin | |
| Chairman, NCEP | Director, CBO |
July 1982
SUMMARY
CHAPTER I. INTRODUCTION
CHAPTER II. CETA TRAINING
CHAPTER III. THE EFFECTS OF CETA TRAINING ON THE POST-PROGRAM EARNINGS OF ADULT PARTICIPANTS
CHAPTER IV. ISSUES AND OPTIONS FOR FUTURE JOB-TRAINING PROGRAMS
APPENDIX A. ESTIMATING THE EFFECT OF CETA TRAINING ON PARTICIPANTS' FUTURE EARNINGS
APPENDIX B. ACCOUNTING FOR THE UNUSUALLY LOW EARNINGS EXPERIENCED BY PARTICIPANTS IN THE YEAR BEFORE THEY ENTERED A CETA TRAINING PROGRAM
APPENDIX C. VALIDATING THE SOCIAL SECURITY EARNINGS DATA
APPENDIX D. ESTIMATING THE BIAS CAUSED BY CETA PARTICIPANTS IN THE COMPARISON GROUP
APPENDIX E. FINDINGS BY OTHER STUDIES ABOUT THE RELATIVE EFFECTIVENESS OF CLASSROOM TRAINING, ON-THE-JOB TRAINING AND WORK EXPERIENCE
APPENDIX F. COMPONENTS OF THE AVERAGE EARNINGS GAIN EXPERIENCED BY FEMALE PARTICIPANTS
APPENDIX G. EXAMINING THE RELATIONSHIP BETWEEN POST-PROGRAM EARNINGS GAINS AND THE LENGTH OF TRAINING
APPENDIX H. COMBINING RESULTS FOR DIFFERENT GROUPS OF PARTICIPANTS, DIFFERENT POST-PROGRAM YEARS, AND DIFFERENT TYPES OF TRAINING
| TABLES | |
| 1. | SPENDING FOR COMPREHENSIVE EMPLOYMENT AND TRAINING ACT PROGRAMS, FISCAL YEARS 1975-1982 |
| 2. | CHARACTERISTICS OF NEW ADULT PARTICIPANTS IN CETA COMPREHENSIVE TRAINING PROGRAMS (TITLE II-B,C), FISCAL YEAR 1980 |
| 3. | DISTRIBUTION OF PARTICIPANTS BY OCCUPATION FOR WHICH TRAINING WAS PROVIDED, FISCAL YEAR 1976 |
| 4. | DESCRIPTION OF CETA COMPREHENSIVE TRAINING PROGRAMS (TITLE II-B,C), FISCAL YEAR 1980 |
| 5. | THE EFFECT OF CETA TRAINING ON AVERAGE ANNUAL POST-PROGRAM EARNINGS BY SEX AND TYPE OF TRAINING |
| 6. | LABOR FORCE PARTICIPATION, EMPLOYMENT, HOURS WORKED, AND WAGE RATES BEFORE AND AFTER CETA TRAINING |
| 7. | CETA PARTICIPANT AGE, EDUCATION AND MINORITY STATUS |
| 8. | EARNINGS GAINS BY SEX AND PREVIOUS EMPLOYMENT EXPERIENCE |
| 9. | EARNINGS GAINS BY SEX, TYPE OF TRAINING, AND LENGTH OF TRAINING |
| 10. | EARNINGS GAINS BY SEX, MINORITY STATUS, AND TYPE OF TRAINING |
| A-l. | ESTIMATES OF AVERAGE ANNUAL POST-PROGRAM EARNINGS GAINS AT EACH STEP IN THE ANALYSIS |
| A-2. | CHARACTERISTICS OF FEMALE PARTICIPANTS AND COMPARISON GROUP MEMBERS IN THE SAMPLE |
| A-3. | CHARACTERISTICS OF MALE PARTICIPANTS AND COMPARISON GROUP MEMBERS IN THE SAMPLE |
| B-l. | ESTIMATED PORTION OF THE PRE-PROGRAM DIP THAT WOULD HAVE REMAINED IN THE ABSENCE OF TRAINING |
| B-2. | THE RELATIONSHIP BETWEEN p AND  s |
| B-3. | ESTIMATES OF s AND p |
| C-l. | THE RATIO OF AVERAGE ANNUAL EARNINGS ACCORDING TO SOCIAL SECURITY DATA AND AVERAGE ANNUAL EARNINGS ACCORDING TO SURVEY DATA |
| C-2. | PERCENTAGE OF THE SAMPLE THAT REACHED THE SOCIAL SECURITY EARNINGS MAXIMUM BETWEEN 1970 AND 1978 |
| C-3. | PERCENTAGE OF MALE CETA PARTICIPANTS WHO REACHED THE SOCIAL SECURITY MAXIMUM DURING THE PREPROGRAM AND POST-PROGRAM PERIODS |
| D-l. | PARTICIPANT AND COMPARISON GROUP POPULATION SIZE BY SEX, MINORITY STATUS AND TYPE OF TRAINING |
| D-2. | CONTAMINATION PROPORTIONS RESULTING FROM 1975-1976 ADULT CETA PARTICIPANTS BY SEX, MINORITY STATUS AND TYPE OF TRAINING |
| D-3. | CONTAMINATION PROPORTIONS INCLUDING ALL 1974-1978 ADULT CETA PARTICIPANTS BY SEX AND MINORITY STATUS |
| E-l. | AVERAGE PRE-PROGRAM EARNINGS BY SEX, TYPE OF TRAINING, AND PRE-PROGRAM YEAR |
| F-l. | THE COMPONENTS OF EARNINGS FOR FEMALE CETA PARTICIPANTS BEFORE AND AFTER TRAINING |
| F-2. | PERCENTAGE OF THE AVERAGE EARNINGS GAIN EXPERIENCED BY ADULT FEMALE PARTICIPANTS DUE TO EACH OF THE FOUR BASIC COMPONENTS OF EARNINGS |
| G-l. | THE MARGINAL CHANGE IN POST-PROGRAM EARNINGS ASSOCIATED WITH AN ADDITIONAL DAY OF TRAINING BY SEX AND TYPE OF TRAINING |
| H-l. | F TESTS FOR POOLING RESULTS BY CETA ENTRY GROUP, POST-PROGRAM YEAR, TYPE OF TRAINING, MINORITY STATUS AND SEX |
| FIGURES | |
| 1. | AVERAGE ANNUAL EARNINGS FOR FEMALE CETA PARTICIPANTS AND COMPARISON GROUP MEMBERS FROM 1964 TO 1978 |
| 2. | 1975 FEMALE CETA PARTICIPANTS' AVERAGE ANNUAL EARNINGS FROM 1964 TO 1978 |
| 3. | 1976 FEMALE CETA PARTICIPANTS' AVERAGE ANNUAL EARNINGS FROM 1964 TO 1978 |
| 4. | AVERAGE ANNUAL EARNINGS FOR MALE CETA PARTICIPANTS AND COMPARISON GROUP MEMBERS FROM 1964 TO 1978 |
| 5. | 1975 MALE CETA PARTICIPANTS' AVERAGE ANNUAL EARNINGS FROM 1964 TO 1978 |
| 6. | 1976 MALE CETA PARTICIPANTS' AVERAGE ANNUAL EARNINGS FROM 1964 TO 1978 |
| 7. | EARNINGS AFTER TRAINING RELATIVE TO THE PAST LONG-TERM EARNINGS TREND OF A CETA PARTICIPANT WHO EXPERIENCED A POST-PROGRAM EARNINGS GAIN |
| A-l. | EARNINGS AFTER TRAINING RELATIVE TO THE PAST LONG-TERM EARNINGS TREND OF A CETA PARTICIPANT WHO EXPERIENCED A POST-PROGRAM EARNINGS GAIN |
| F-l. | POST-PROGRAM EARNINGS GAINS VERSUS GROSS EARNINGS CHANGES |
The Comprehensive Employment and Training Act (CETA), which authorizes most job training programs for low-income persons, is scheduled to expire at the end of fiscal year 1982. Several proposals for new legislation are now before the Congress.1 Two important issues in the design and operation of job training programs are: whom to serve and what services to provide. To provide background information on these issues, this paper analyzes the effects of CETA training on participants' post-program earnings.
This document is available in its entirety in PDF.
1. The Administration's proposal, the Job Training Act of 1982--S. 2184--was introduced in the Senate on March 9, 1982. The Senate passed the Training for Jobs Act--S. 2036--on July 1, 1982, and the House Committee on Education and Labor reported the Job Training Partnership Act--H.R. 5320--on May 17, 1982.