Long Term Effects of Sectoral Advancement Strategy

The WorkAdvance model was implemented between June 2011 and June 2013 by four providers — Per Scholas, St. Nicks Alliance, Madison Strategies Group, and Towards Employment — and a total of 2,564 individuals enrolled in the study. This report presents the long-term economic impacts of WorkAdvance and covers a two-year period occurring between four and eight years after individuals entered the study.

The essential theory behind WorkAdvance is that offering low-income individuals education and employment-related skills and experience in high-demand sectors will help them advance in the labor market. This theory informs the five key components of the WorkAdvance model:

• Intensive screening of program applicants before enrollment for motivation and readiness, to ensure program providers select participants who can take advantage of the training and qualify for jobs in the target sector.
• Sector-appropriate preemployment and career readiness services, including an orientation to the sector, career advancement coaching, and limited support services.
• Sector-specific occupational skills training aligned with employer needs, leading to certifications that are in demand in the regional labor market.
• Sector-specific job development and placement services based on strong relationships with employers and intended to facilitate entry into positions that participants have been trained for and that offer genuine opportunities for continued skills development and career advancement.
• Postemployment retention and advancement services, including ongoing contact, coaching, skills training, and rapid reemployment help if needed.

(This report is 118 pages long and was developed by MDRC.)

The following findings were identified by the researchers:

• The WorkAdvance program at Per Scholas increased average earnings in 2017 and 2018; there were no statistically significant effects on average earnings at the other three sites. There is evidence that some of the WorkAdvance programs increased the likelihood of individuals having earnings of at least $30,000 in some time periods. None of the WorkAdvance sites increased employment by a statistically significant amount in either long-term follow-up year.
• In the pooled sample from all four providers, WorkAdvance had no effect on employment but increased average earnings and the likelihood of individuals having high earnings.
• The overall pattern of economic impact findings suggests that the earnings-based impacts are driven by WorkAdvance group members having higher wages than control group members, rather than by being employed at a higher rate. This suggests WorkAdvance group members are advancing over time, as intended by the WorkAdvance model.
• The findings from the benefit-cost analysis are positive from the perspectives of the participants, the government, and society at all four sites.

Recommendations:

The following recommendation were identified by the researchers:

• Overall, the WorkAdvance results support the case for focusing on how sector programs can be improved. The long-term economic impacts show that sector programs can increase earnings in the longer term and can lead to advancement gains over time for low-income individuals, but not all sector programs will lead to increases in employment and earnings.
• Focusing future efforts on how to make the sectoral approach — in particular, the advancement-focused services — more consistently successful can help workforce providers strengthen sector-based programs.

• Last Updated:
• Created:
• Resource Publication Date: 2020
• Author(s): Lois Engel
• Funding Source: Robin Hood Foundation, MDRC, U.S. Department of Health and Human Services
• Resource Availability: Publicly available
• Posted by: Wesley Peterson
• Posted in: Workforce System Strategies