An Evaluation of Local Investments in Workforce Development: 2014 Update

“The evaluation examines outcomes and impacts for participants in Travis County-funded community-based workforce programs over time. Seven providers with long-standing County contracts have been the focus of an ongoing evaluation of the outcomes and impacts of local workforce services investments led by the Ray Marshall Center since 2006: 1. American YouthWorks; 2. Austin Academy; 3. Austin Area Urban League; 4. Capital IDEA; 5. Goodwill Industries of Central Texas; 6. Skillpoint Alliance; 7. Workforce Solutions–Capital Area Workforce Board.

The evaluation examines outcomes and impacts for participants in community-based workforce programs over time. This 2014 Update report has three objectives: to extend the labor market outcomes analysis for 2009-2011 participants from all seven providers; to add 2012 participants for each provider to the evaluation; and to identify the impact of participation in a County-funded workforce program in comparison with individuals who received other publicly-funded workforce services” (p.1).

“The purpose of Travis County’s investment in local workforce development services is to help disadvantaged residents build the skills needed for employment. Accordingly, each program is evaluated based on its participants’ outcomes. Output and outcome performance goals are established for each provider in its contract with the County. Among the various performance measures utilized, three are shared across the majority of providers:

• Number of unduplicated clients served,
• Percentage of clients who retained employment for 6 months, and
• Average wage at entry” (p.3).

“The quasi-experimental impact analysis seeks to gauge the “value-added” from workforce program participation by comparing labor market outcomes for participants with those of a matched comparison group. Comparison group members were drawn from The Workforce Information System of Texas (TWIST) records and include Travis County residents who registered for employment with the state’s Work In Texas program or who received job search services at local Workforce Solutions Career Centers or online. Quasi-experimental approaches tend to work well when participants for whom comparison groups are created have sufficient prior employment and earnings histories and when data are available on a sufficient number of variables with which to perform the match” (p. 5).

(Abstractor: Author)

“Employment outcomes varied greatly across providers, from a 19 percentage-point increase in quarterly employment across all post-service quarters at American YouthWorks, to an increase of two percentage points at Workforce Solutions – REM, to a decrease of three percentage points at Goodwill. The earnings outcomes associated with the increased employment also varied across providers. Employed participants from American YouthWorks, Austin Area Urban League and Goodwill earned approximately $1,300 to $1,600 more, on average, in the post-service period compared to their average pre-service earnings. Employed participants from Ascend Center for Learning, Skillpoint Alliance, and Workforce Solutions earned approximately $900, on average, in the post-service period based on the same comparison. Participants of Capital IDEA, the long-term training provider in the evaluation, show particularly strong earnings gains in the post-service period. Across all cohorts from 2003 through 2012, average quarterly earnings for those employed were up more than $3,000 from the average pre-service earnings, an increase of about 70 percent. It is possible that more recent cohorts have a higher share of participants still in training, meaning that the individuals who did not complete the program may be driving the outcomes presented here” (p.64). “Participation in any skills building appears to have some association with increased employment stability, as evidenced by higher shares of participants in all of the programs meeting the monetary eligibility requirements for Unemployment Insurance benefits in the post-service period. Few participants from any program submitted a claim for UI benefits in the quarters examined. The quasi-experimental analysis compares the outcomes of participants to those of a matched comparison group, providing important context for understanding the benefits of participation in a Travis County-funded workforce development program. Results show that none of the six shorter-term programs had a significant impact on employment rates, while Capital IDEA had a modest positive impact with an increase of just less than 2 percentage points. Two of the six shorter-term programs – American YouthWorks and Workforce Solutions – had a significant positive impact on earnings, while two programs had no significant impact and two had a significant negative impact” (p.65).

• Last Updated:
• Created:
• Resource Publication Date: 2015
• Author(s): Smith, Tara; Christensen, Kristin; and Cumpton, Greg.
• Organizational Author(s): Ray Marshall Center, LBJ School of Public Affairs, University of Texas at Austin
• Funding Source: Travis County Health and Human Services Department
• Resource Availability: Publicly available
• Posted by: Long Dang
• Posted in: Workforce System Strategies