"Tuning In to Local Labor Markets: Findings From the Sectoral Employment Impact Study"

Since 2003, Public/Private Ventures has been rigorously studying if sector-focused programs can increase the earnings of disadvantaged workers and job seekers. They selected three community-based organizations to participate in the study:  a community-based organization focused on medical and basic office skills in Boston;  a social venture focused on information technology in the Bronx;  and an employer-union partnership focused on healthcare, manufacturing and construction in Milwaukee. Here are some findings from the P/PV study released in July, 2010: 

1. Participants in sector-focused training earned 29% more during a 2 year period than the control group members on average, or $337 more per month—about $4,000 more overall. 
2. Participants in sector-focused programs were significantly more likely to work and, in the second year, worked more consistently than control group members.
3. Program participants were significantly more likely to work in jobs with higher wages.
4. Program participants were significantly more likely to work in jobs that offered benefits.
5. For each subgroup analyzed, program participants had significant earnings gains as compared to their counterpart controls.

The implications for this in terms of sectoral program design are that the agency doing this work must be mature and be able to support participants for up to two years. They must also be ready and able to partner deeply with employers ready to hire and promote. The challenge I see in this study is that, despite great efforts to help participants increase their hourly wages and months worked, they are still earning between $11-$13 per hour (approx. $27K/year at best). Although this is well above the federal poverty level (for a single adult) of $10,830, we all know what it costs to live in an urban center like Boston or New York. It would be interesting to see if incomes continue to grow and think of ways to provide on-going incumbent worker training to continue to promote career growth through community colleges or apprenticeship programs.