1. What the European Social Fund Can Learn from the WIA Experience
Ten Years of the Workforce Investment Act: Interpreting the Research on WIA and Related Programs
November 2009
What the European Social Fund Can Learn from the WIA Experience
Paul Decker

2. Research Related to WIA
WIA Implementation Studies
Impact Studies
WIA and other programs
Adults and dislocated workers
Experimental and nonexperimental
Individual Training Account (ITA) Research
Implementation
ITA Experiment
Related voucher programs

3. WIA Implementation Service coordination Customer empowerment
Universal access
Accountability
Engaging the private sector
Local flexibility
Youth program improvement

4. Impacts of WIA on Adults
Post Evidence
National JTPA Study (Experimental)
Increase in earnings modest but persistent
Similar for men and women (in dollar terms)
Services were cost effective for society
Recent WIA Studies (Nonexperimental)
WIA increases earnings; impacts persistent
Effects of training positive and growing
Effects of core/intensive positive and declining

5. Impacts of WIA on Dislocated Workers
Post-1995 Evidence
Job Search Assistance/WPRS (Experimental and Nonexperimental)
Reduces UI spells
Increases earnings modestly, impact fades
Customized or one-size-fits all can work
Cost effective
Studies of Training (Nonexperimental)
Trade Adjustment Assistance no effect
Community college increases earnings for older workers, cost-effective

6. Impacts on Dislocated Workers (cont.)
Recent WIA Studies (Nonexperimental)
Small earnings gains, at best, for WIA overall
Evidence particularly disappointing for training
Nonexperimental estimates are flawed in this case
Estimated social net benefits are negative

7. Structure of ITA Experiment
ITA Experiment tested three models, including the common “guided choice” model

8. Findings From ITA Experiment
Abolishing counseling requirements reduces counseling but increases pursuit and take up of ITAs; no significant impact on training part.
Local counselors reluctant to be too prescriptive in guiding training decisions, even when given clear authority; denials extremely rare
When ITA amounts are customized, counselors are generous and average ITAs increase substantially;
Most prescriptive, generous ITA approach generates higher earnings than least prescriptive