Does Occupational Training by the Trade Adjustment Assistance Program Really Help Reemployment? Success Measured as Occupation Matching
Does Occupational Training by the Trade Adjustment Assistance Program Really Help Reemployment? Success Measured as Occupation Matching
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贸易调整援助计划职业培训真的有助于再就业吗?
DOI:
10.1111/roie.12009
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发表时间:
2012
期刊:
影响因子:
--
通讯作者:
Jooyoung Park
中科院分区:
文献类型:
--
作者:
Jooyoung Park
The Trade Adjustment Assistance (TAA) Program is a dislocated worker program established by the U.S. Department of Labor to reduce the adjustment cost of workers displaced due to import competition. The program offers occupational skills training and reemployment services. This paper investigates the impacts of successful skill acquisition through occupational skills training on post-participation labor market outcomes such as wage replacement rates, post-participation earnings, and retention rates. I use matching between the occupations of training and entered employment as an indicator of successful skill acquisition through training. The data set used in this study is the Trade Act Participant Report (TAPR) and is acquired through the Freedom Of Information Act. The data set shows a 37.53% of matching rates among occupational skills trainees. Matching is important in improving wage replacement rates. Trainees with a match display wage replacement rates that are 2 to 3 percentage points higher than trainees without a match. Trainees without a match display lower wage replacement rates than non-trainees. This is potentially due to their more limited skill sets that led them into training enrollment in the first place. Successful skill acquisition – indicated by a match – more than compensates this disadvantage of trainees. Trainees with and without a match display the same post-participation earnings. The results from wage replacement rates and post-participation earnings together suggest that although the trainees with a match displayed lower earnings prior to participation given individual characteristics, successful skill acquisition through training put these two groups of trainees on par with each other. These results suggest that the occupational choices matter and the training provision of the TAA program can be more fruitful if more resources are allocated to thorough worker assessment/counseling and good usage of local labor market information.