Download - John J. Heldrich Center for Workforce Development

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Download - John J. Heldrich Center for Workforce Development

Findings from the Evaluation of the Newark/EssexConstruction Careers ConsortiumPrepared for: New Jersey Institute for Social JusticeSeptember 12, 2007William Mabe, Ph.D., Senior Project Manager


John J. Heldrich Center forWorkforce DevelopmentCore Findings• The N/ECCC program significantly improves earningsof adult participants (age 20 and older).• A variety of factors contribute to the success of theprogram.• The program is more effective for adults than foryouth.– The program is, however, as effective as other trainingprograms at helping youth obtain favorable employmentoutcomes.2


John J. Heldrich Center forWorkforce DevelopmentOverview of the Evaluation• The evaluation used multiple, rigorousmethodologies to:– Establish the extent to which the N/ECCC program hasbeen effective at helping its participants obtain unionapprenticeships and increase their earnings.– Identify the elements of the program that have addedvalue to the program as well as those that havedetracted from the program’s value.3


John J. Heldrich Center forWorkforce DevelopmentFinding 1:Despite strict entrance requirements, the N/ECCCprogram serves individuals with barriers toemployment.• N/ECCC participants tend to have:– Limited employment histories– Low average earnings– Limited academic skills• Twelve percent of participants had formerlybeen incarcerated4


John J. Heldrich Center forWorkforce DevelopmentFinding 2:The N/ECCC program is effective at improving theearnings of adult participants (20 and older atenrollment).• Half of adult participants are placed into anapprenticeship.• In the two years after completing theprogram, adult graduates earn significantlymore than they did before enrolling in theprogram.5


John J. Heldrich Center forWorkforce DevelopmentAverage Annual Earnings of N/ECCC Program Completers WhoWere 20 or Older at Enrollment$20,000$18,000$16,000$14,000Earnings per Year$12,000$10,000$8,000$6,000$4,000$2,000$0-4 -3 -2 -1 0 1 2 3Year Relative to When Program Was CompletedSource: New Jersey Unemployment Insurance Wage Records,Provided by the New Jersey Department of Labor and Workforce Development6


John J. Heldrich Center forWorkforce DevelopmentFinding 2 (continued):• N/ECCC graduates earn more than similarindividuals who receive One-Stop training.– About $5,000 more in the first year after training– About $8,000 more in the second year after training• N/ECCC graduates experience greater wagegrowth after training than this comparison group.– About $5,000 more wage growth from the first year beforetraining to the first year after training– About $8,500 more wage growth from the second year beforetraining to the second year after training7


John J. Heldrich Center forWorkforce DevelopmentFinding 2 (continued):The N/ECCC program even benefits those adults whodo not obtain apprenticeships.• In the second year after training, the N/ECCCgraduates who did not obtain apprenticeships:− earn about $5,000 more than comparison groupmembers− experience $5,000 more wage growth between thesecond year before training to the second year aftertraining than comparison group members.8


John J. Heldrich Center forWorkforce DevelopmentFinding 4:The N/ECCC program is no more successful than otherforms of training at improving the employmentprospects of the youngest participants (younger than20 at the time of enrollment).• Only 25 percent of younger graduates obtainedapprenticeships• Earnings of youth graduates were significantly lowerthan those of adult graduates– $7,760 in the first year after graduation– $10,793 in the second year after graduation10


John J. Heldrich Center forWorkforce DevelopmentFinding 4 (continued):• N/ECCC graduates who were younger than 20 atenrollment:– Were as likely to be employed in any of the eight quartersafter graduation as members of the comparison group– Earned wages that were equal to the wages of comparisongroup members in both the first and second years aftercompleting training11


John J. Heldrich Center forWorkforce DevelopmentRecommendations:N/ECCC could take the following steps to furtherstrengthen the program:• Develop a plan for addressing the discrepancy inoutcomes between youth and adult participants• Strengthen outreach to the Hispanic community• Strengthen the relationships with the Newark One-Stop Career Center• Identify ways to increase the repayment rate on postgraduateloans the students receive12


John J. Heldrich Center forWorkforce DevelopmentQuestions and Discussion13

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