[Federal Register Volume 73, Number 2 (Thursday, January 3, 2008)]
[Notices]
[Pages 501-512]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25563]


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DEPARTMENT OF LABOR

Employment and Training Administration


Publication of the Five-Year Research, Demonstration, and 
Evaluation Strategic Plan for 2007-2012

AGENCY: Employment & Training Administration, Labor.

ACTION: Notice of publication of U.S. Department of Labor, Employment 
and Training Administration's Five-Year Research, Demonstration, and 
Evaluation Strategic Plan for 2007-2012.

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SUMMARY: Notice is hereby given of the publication of the U.S. 
Department of Labor, Employment and Training Administration's (USDOL/
ETA) Five-Year Research, Demonstration, and Evaluation Strategic Plan 
for 2007-2012, hereafter referred to as ``Strategic Plan''. The 
Strategic Plan is required under the Workforce Investment Act (WIA) of 
1998, Section 171. The attached Strategic Plan identifies the potential 
demonstration and pilot, multi-service, multi-state, research and 
evaluation efforts that will most assist ETA in carrying out workforce 
development programs under WIA.

FOR FURTHER INFORMATION CONTACT: Heidi M. Casta, USDOL/ETA, Office of 
Policy Development and Research, N-5641, 200 Constitution Avenue, NW., 
Washington, DC 20210; phone: (202) 693-3700; fax: (202) 693-2766; e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:
    a. Why has the USDOL/ETA developed a five-year research, 
demonstration, and evaluation strategic plan?
    Under Section 171 of WIA, the Secretary of Labor is required to 
submit, every two years, a plan that describes demonstration and pilot, 
multi-service, research and multi-state projects. The Strategic Plan 
focuses on priorities for USDOL/ETA concerning employment and training 
for the five-year period following the plan. By requiring such a plan, 
WIA has given USDOL/ETA the unique opportunity to conduct a literature 
review of previous employment and training studies and the research 
methodologies used for these studies, and to propose an agenda for the 
next five years (beginning July 2007) for pilots, demonstrations, 
research, and evaluation studies in areas related to workforce 
development programs and policies.
    b. What is the purpose of the plan, and how is it structured?
    The Strategic Plan provides an overview of prior research, current 
research and proposed direction for future research that builds on 
prior efforts. The Strategic Plan is composed of three major sections.
    The first section describes a sampling of projects conducted during 
the previous five year period (2002-2007) and provides a web link to 
the published reports. This section is organized in four subtopics:
     Workforce Investment Act.
     Internet Unemployment Insurance Claims.
     Personal Reemployment Accounts.
     Youth Programs.
    The second section describes a select sampling of current research, 
demonstration and evaluation projects and includes a web link to a list 
of current projects. This section is also organized in four subtopics:
     Labor Market and the Global Economy.
     Workforce Investment System Improvements.
     Existing and Emerging Labor Pools.
     Program Evaluation.
    The third section focuses on the six priority areas for research, 
demonstration, and evaluation projects for the next five-year period 
(2007-2012). This section is organizes by the following six priority 
areas:
     Integration of Workforce and Regional Economic 
Development.
     Methods of Expanding U.S. Workforce Skills.
     Increasing the Labor Market Participation of Underutilized 
Populations.
     Using State-Level Administrative Data to Measure Progress 
and Outcomes.
     Post-Secondary Education and Job Training.
     Unemployment Insurance (UI).

To Obtain an Electronic Copy of the Attached Report:

    To download the full report as a PDF, visit the ETA Occasional 
Paper series Web site at: http://wdr.doleta.gov/research/keyword.cfm.

    Signed at Washington, DC, this 27th day of December, 2007.
Emily Stover DeRocco,
Assistant Secretary, Employment and Training Administration.

Attachment

U.S. Department of Labor, Employment and Training Administration's 
five-year pilot, demonstration and evaluation strategic plan for 2007-
2012. As required under Section 171 of the Workforce Investment Act.

Table of Contents

Introduction
Section I. Prior Research
     Workforce Investment Act
     Internet Unemployment Insurance Claims
     Personal Reemployment Accounts
     Youth Programs
Section II. Current Research
     Labor Market and the Global Economy
     Workforce Investment System Improvements
     Existing and Emerging Labor Pools
     Program Evaluation
Section III. Future Research Priority Areas
     Integration of Workforce and Regional Economic 
Development
     Methods of Expanding U.S. Workforce Skills
     Increasing the Labor Market Participation of 
Underutilized Populations
     Using State-Level Administrative Data to Measure 
Progress and Outcomes
     Post-Secondary Education and Job Training
     Unemployment Insurance (UI)
Appendix A: Leading Business, Government and Academic Economists

I. Introduction

    Section 171 of the Workforce Investment Act (WIA) of 1998 requires 
the Secretary of Labor to submit, every two years, a plan that 
describes demonstration and pilot, multi-service, research and multi-
state projects that focus on priorities for the Department of Labor 
concerning employment and training for the five-year period following 
the plan. The Secretary is to consult with interested parties in the 
development of the plan and the plan is to contain strategies to 
address national employment and training problems. On behalf of the 
Secretary, Assistant Secretary Emily Stover DeRocco convened a meeting 
with experts from government, business and academia to discuss agency 
priorities and identify key research, demonstration, and evaluation 
priority areas for the 2007-2012 five-year period. This Five-Year 
Research, Demonstration and Evaluation Strategic Plan for 2007-2012 has 
been developed in accordance with the requirements of Section 171.

[[Page 502]]

    The Strategic Plan is composed of three major sections. The first 
section describes a sampling of research, demonstration and evaluation 
projects conducted in the previous five years (2002-2007) and provides 
a web link to published research, demonstration and evaluation 
projects. The second section describes a select sampling of current 
research, demonstration and evaluation projects and includes a web link 
to a list of current projects. The third section of the Strategic Plan 
focuses on the six priority areas for research, demonstration and 
evaluation projects for the next five-year period. It is important to 
note that specific projects under the six priority areas will be 
identified and determined each program year and planned for in 
accordance with available resources.

Section I. Prior Research

    During the past five years the Employment and Training 
Administration (ETA) has commissioned a variety of studies concerning 
employment and training. This section briefly describes some of the 
past research, demonstration and evaluation projects commissioned under 
the following broad categories: WIA, Internet unemployment insurance 
claims, personal reemployment accounts (PRAs), and programs to help 
disadvantaged youth.

Workforce Investment Act

    In its study of WIA funded by ETA, Social Policy Research 
Associates (SPRA) noted that WIA's key objective was to consolidate, 
coordinate, and improve employment, training, literacy and vocational 
rehabilitation programs in the United States. \1\ The study found that 
due to WIA's attempt to streamline services through integration, WIA 
partners gained a new understanding of each others' programs and a 
commitment to working collaboratively.
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    \1\ Social Policy Research Associates, The Workforce Investment 
Act after Five Years: Results from the National Evaluation of the 
Implementation of WIA, 2004.
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    However, the study found weaknesses in some partnerships. One of 
the weaknesses was the difficulty encountered in determining each One-
Stop partners' financial contribution towards supporting the One-Stop 
infrastructure. Partners also had difficulty dividing responsibilities 
to provide self-services and staff resource rooms.
    The SPRA study concluded that the diversity of service delivery 
across the One-Stop system was evidence of increased State and local 
flexibility that is one of the intents of the WIA reforms. In addition, 
the study found significant evidence of the emphasis WIA placed on 
performance and accountability through the performance-measurement 
system, including performance requirements for States, local areas, and 
training providers.
    In another ETA-funded study by the Nelson A. Rockefeller Institute 
of Government, the authors found that most of the studied States and 
their local workforce boards have moved beyond the work-first approach 
and have begun to place emphasis on training. \2\ However, the study 
found that resource levels were inadequate to address WIA's goal of 
universal access to core services and increasing access to training 
services. The Administration's proposed establishment of targeted 
funding for One-Stop infrastructure would help to address this concern 
as would its Career Advancement Account proposal and related efforts to 
reduce administrative and overhead costs associated with the system.
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    \2\ Barnow, Burt S., The Workforce Investment Act in Eight 
States: Overview of Findings from a Field Network Study, Interim 
Report, 2003.
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    In a report by Berkeley Policy Associates (BPA) from another study 
funded by ETA, researchers found that WIA placed a premium on 
innovation and flexibility in the provision of workforce services. As a 
result, local boards experienced tension between seeking greater 
flexibility and assuring that One-Stop service delivery was consistent 
across different organizations and locations. The study also concluded 
that WIA reinforced a customer-driven system that has the potential to 
substantially increase training choices for its customers and appears 
to have done so in its early implementation.\3\
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    \3\ Berkeley Policy Associates, Creating Partnerships for 
Workforce Investment: How Services are Provided under WIA, 2003.
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Individual Training Accounts

    A key goal of the WIA was to empower customers of the workforce 
investment system by giving them meaningful choices about the types of 
services they receive. The requirement that local workforce investment 
areas use vouchers or Individual Training Accounts (ITAs) to fund 
training was one way in which WIA addressed this goal. Nearly all of 
the 28 sites in an evaluation study funded by ETA planned to use ITAs 
predominantly for training adults and dislocated workers. The study 
found that the distribution of funds favored training as opposed to an 
emphasis on core and intensive services. The study also found that 
local areas have put financial caps on ITAs that vary depending on the 
site.\4\ Most sites did not establish schedules for completion of 
training, allowing customer-driven services that permit participants to 
proceed at the pace best suited to their needs. Most sites adhered to 
an informed choice model ensuring that those authorized for training 
receive ample information and guidance to make better personal choices.
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    \4\ Decker, Paul T., Ron D'Amico, and Jeffrey Salzman, The 
Evaluation of the Individual Training Account/Eligible Training 
Provider Demonstration, 2004.
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    The study found that the Consumer Report System, an information 
system that supports customer choice, was developed in all observed 
sites over the course of the evaluation. Most sites were planning on 
conducting an analysis of performance outcomes on behalf of training 
institutions. Results affirmed the notion that the Eligible Training 
Providers (ETP) List provided customers ample choices in most of the 
training fields.
    In another study funded by ETA, Mathematic Policy Research, Inc. 
(MPR) tested three approaches to the degree of customer choice in 
program selection and their effect on ITA participation.\5\ ``Approach 
1'' was designed to be the most directive of the approaches, requiring 
customers to receive intensive counseling and allowing counselors to 
reject customers' training choices that did not have a high return. The 
ITA amount was flexible to upwards of $8,000 in most sites. ``Approach 
2'' was the approach most similar to what local areas adopted in their 
transition to WIA, where counseling was required but less intensive 
than Approach 1. In Approach 2, counselors could not reject customers' 
choice of training that was on the State's list of ETP, and the ITA was 
a fixed amount (generally between $3,000 to $5,000). ``Approach 3'' was 
the least structured where customers were not required to participate 
in any counseling after being found eligible for training. Customers 
could select training from the State's list of ETP, and they had the 
same fixed amount as in Approach 2.
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    \5\ McConnell, Sheena, Elizabeth Stuart, Kenneth Fortson, Paul 
Decker, Irma Perez-Johnson, Barbara Harris, and Jeffrey Salzman, 
Managing Customers' Training Choices: Findings from the Individual 
Training Account Experiment, 2006.
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    The study found that participants who were required to take 
counseling (Approaches 1 and 2) were less likely to choose an ITA as 
the vehicle through which to receive training. Counseling presented an 
obstacle to receiving an ITA and discouraged customers from going 
through with the program. When counseling was voluntary (Approach 3),

[[Page 503]]

customers very rarely requested it, and the lack of required counseling 
led to more participants pursuing training through the use of ITAs.
    Average training costs per ITA customer with intensive counseling 
(Approach 1) were 36 percent higher than when such counseling was not 
provided. In the interim evaluation of the ITA demonstration, MPR noted 
that the comparison of costs did not include fees associated with 
counseling.\6\ Approach 3 customers were more likely than Approach 1 
and 2 customers to choose a program at a community college.
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    \6\ Perez-Johnson, Irma, Sheena McConnell, Paul Decker, Jeanne 
Bellotti, Jeffrey Salzman, and Jessica Pearlman, The Effects of 
Customer Choice: First Findings from the Individual Training Account 
Experiment, 2004.
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    The differences in approaches did not affect the rate of 
participation in training although reduced counseling requirements led 
ITA customers to enroll in training programs sooner. Despite 
counselors' fears that those without counsel were more likely to choose 
low-paying or high-turnover occupations, customers who did not face a 
counseling requirement chose occupations similar to those chosen by 
customers treated under more rigorous counseling approaches. Counseling 
did, however, broaden the set of training options customers considered. 
ETA will further explore the long-run impacts of the three ITA 
treatments on participant groups' earning, employment and retention.

Unemployment Insurance and One-Stop Centers

    A study by BPA found that because most claims for Unemployment 
Insurance (UI) are filed via telephone, mail, or the Internet, 
interactions between UI and One-Stop Center staff to facilitate 
reemployment of UI claimants has diminished.\7\ The primary purpose of 
the study was to find effective approaches to facilitate linkages 
between the two components of the workforce investment system. The 
study found that all interventions designed to increase One-Stop staff 
interaction with UI claimants, including required orientation, referral 
to a job opening, and mandatory job search workshops, increased 
quarterly earnings, reduced the duration of UI benefits and the average 
amount of benefits drawn, and increased the rate of employment.
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    \7\ Berkeley Policy Associates, Evaluation of the Strengthening 
Connections between Unemployment Insurance and One-Stop Delivery 
Systems Project, 2005.
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WIA and Business

    A study by SPRA evaluated the implementation of the WIA, 
specifically with regard to engaging business in strategic planning and 
Workforce Investment Boards.\8\ Local workforce areas were found to be 
lagging in their ability to engage the private sector seriously or get 
business members to participate in meaningful ways.
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    \8\ Dunham, Kate, Jeff Salzman, and Vinz Koller, Business as 
Partner and Customer under WIA: A Study of Innovative Practices, 
2004.
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    The study found that one of the biggest challenges faced was the 
need to build credibility with businesses. Most of the sites studied 
indicated that there was a direct connection between the availability 
of business services and improved relationships with businesses. 
Services provided to businesses involved a number of activities 
including coordinating service delivery among One-Stop partners, 
setting up organizational structures to staff and deliver services to 
businesses, selecting and training staff to deliver services to 
business clients, determining how businesses will access services, and 
funding, marketing, tracking and evaluating the services provided to 
businesses.

Internet Unemployment Insurance Claims

    A study by HeiTech Services, Inc. and MPR assessed the 
effectiveness of filing UI claims via the Internet and compared the 
system with telephone and in-person claims-taking methods.\9\ The 
report evaluated service delivery, security, fraud and abuse control, 
and cost effectiveness.
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    \9\ Kenyon, Robert, Karen Needels, Todd Anderson, James Gerding, 
and Michelle VanNoy, Internet Initial Claims Evaluation, 2003.
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    The study found that Internet claims filing systems provided 
convenient access to UI claim services, and Internet claims filers were 
satisfied with the services. UI Internet claimants had a greater 
opportunity to connect with reemployment services online. State data 
indicate that Internet filing did not lead to higher rates of 
overpayments or fraud, and the system security measures appeared to be 
adequate.
    Claimants using the Internet to file their UI claims tended to be 
more educated, white, younger, higher paid and working in higher-
skilled occupations and industries, and more likely to reside in urban 
areas. The Internet claims filing systems were a convenient and cost-
effective method of providing claims services to a segment of the UI 
claimant population.

Personal Reemployment Accounts

    PRAs are accounts of up to $3,000 offered to eligible individuals 
in addition to regular unemployment insurance benefits. Those who 
accept the offer of a PRA must forego free access to WIA intensive 
services within the One-Stop Center and must purchase these services at 
cost, using their PRA funds. Participants choosing a PRA agree to 
forego an ITA for the one-year period for which the PRA is valid. PRAs 
provide unemployed workers additional flexibility to devise their own 
reemployment plan.
    PRA funds can be used for two things: (1) To purchase reemployment 
services and training, and (2) as a reemployment bonus if program 
participants return to work by the 13th week of UI receipt. The goal of 
PRAs is to provide unemployed workers who are likely to exhaust their 
unemployment insurance benefits with additional assistance and 
incentives to find employment. The PRA model utilized, for the first 
time, the elements of reemployment bonus incentives, pricing of 
services, and targeting of UI claimants using Worker Profiling and 
Reemployment Services models.
    In a study commissioned by ETA to explore the use of reemployment 
bonuses, MPR evaluated the PRA model for customer choice among publicly 
funded reemployment services. The study predicted that a maximum amount 
of the $3,000 to be paid immediately to PRA recipients upon their 
reemployment would result in more individuals receiving a reemployment 
bonus than what was observed in previous reemployment bonus 
demonstrations conducted in Pennsylvania and Washington in the late 
1980s.
    In another study funded by ETA, the W.E. Upjohn Institute for 
Employment Research also explored the PRA model by conducting a 
simulation analysis relying on patterns of intensive, supportive, and 
training service usage of targeted UI claimants in Georgia. The study 
found that those who return to work within 13 weeks of their UI claim 
date may receive the unused balance in the PRA as a cash reemployment 
bonus with 60 percent paid at the time of employment and the remainder 
payable after six months of steady employment.\10\ Depending on the 
rules for PRA amounts, the pricing of services, and different 
behavioral responses, the study made various predictions as to the 
number of PRA

[[Page 504]]

offers a State could make with a fixed budget.
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    \10\ O'Leary, Christopher J. and Randall W. Eberts, Personal 
Reemployment Accounts: Simulation for Planning Implementation, 2004.
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    In another study funded by ETA, MPR assessed the implementation of 
PRAs in seven States selected to participate in a pilot project. 
Participant acceptance rates of PRAs among the States varied between 45 
and 80 percent of participants offered the PRAs.\11\ Interim report 
data shows that PRA bonus receipt for finding a job ranged from a low 
of 10 percent in a State with the second highest PRA acceptance rate to 
a high of 39 percent in a State with the second lowest PRA acceptance 
rate. Since purchasing services decreases the amount of the potential 
bonus, PRA program participants delayed such purchases while trying to 
qualify for the maximum bonus and purchasing services only if 
employment entry did not occur by the 13th week of UI receipt. Few 
account holders used the PRA to both purchase services and receive a 
bonus.
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    \11\ Kirby, Gretchen, Implementing Personal Reemployment 
Accounts: Early Experiences of the Seven Demonstration States, 2006.
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    In five of the seven demonstration States when PRA recipients used 
PRA funds to purchase reemployment services, most of these purchases 
were for supportive services such as transportation costs, and other 
general expenses that supported reemployment activities. In the 
remaining two States the majority of spending was directed toward 
training. Few PRA recipients used PRA accounts to purchase intensive 
services such as career counseling or resume development.
    MRP found that the structure of the PRAs contains a number of 
incentives that may at times, conflict. As a bonus for reemployment, 
PRA is treated as taxable income. Conversely, if the PRA is used for 
the breadth of supportive services available, PRA recipients get an 
additional untaxed $3,000 to spend on everyday expenses such as car 
repairs, clothing for interviews, or rent. If participants use the PRA 
fund for supportive services, i.e., as essentially a tax free addition 
to their unemployment benefit amount, then it may increase the 
disincentive towards early reemployment.

Youth Programs

    At the time of initial implementation of WIA, evaluations of youth 
programs were showing the programs to be ineffective in many States and 
local areas. The largest challenge to WIA proved to be moving away from 
large-scale summer youth programs and replacing them with comprehensive 
youth services. As a result of the disappointing findings for youth in 
the National Job Training Partnership Act Study, the following two 
demonstrations were conducted to address the issue of effective youth 
programs:

Quantum Opportunity Program

    The Quantum Opportunity Program (QOP) demonstration offered 
intensive and comprehensive services to help at-risk youth graduate 
from high school and enroll in postsecondary education or training. The 
demonstration consisted mainly of an after school program and targeted 
youth with low grades entering high schools with high dropout 
rates.\12\ The demonstration's primary goals were to increase the rates 
of high school graduation and enrollment in postsecondary education or 
training. Its secondary goals were to improve high school grades and 
achievement test scores and to reduce risky behaviors.
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    \12\ Maxfield, Myles, Allen Schirm, and Nuria Rodriguez-Planas, 
The Quantum Opportunity Program Demonstration: Implementation and 
Short-Term Impacts, 2003.
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    QOP cost $18,000 to $22,000 per enrollee over the full five-year 
period for the five Department of Labor (DOL) funded sites. The cost 
per enrollee at the two sites funded by The Ford Foundation differed 
substantially from this average and each other. Specifically, the 
Yakima program cost was $23,000, while the cost in the Philadelphia 
program was $49,000. An evaluation study concluded that although sites 
implemented the mentoring and developmental components relatively well, 
no site fully and effectively implemented the education component, and 
sites generally did not meet their enrollees' needs for some supportive 
services.\13\ Enrollees at the DOL sites spent an average of 23 percent 
of the annual goal of 750 hours on QOP activities, while the average 
annual participation in the two Ford-funded sites was more than twice 
the average annual participation of 126 hours in the five DOL sites. 
The fraction of enrollees who spent no time at all on QOP activities 
rose steadily from 1 percent to 36 percent over the duration of the 
program.
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    \13\ Schirm, Allen and Nuria Rodriguez-Planas, The Quantum 
Opportunity Program Demonstration: Initial Post-Intervention 
Impacts, 2004.
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    The net impact evaluation revealed that QOP did not increase either 
the likelihood of graduating from high school or engaging in 
postsecondary education or training. Nor did QOP improve high school 
grades and achievement test scores. Finally, QOP did not reduce the 
incidence of risky behaviors either. Despite the lack of overall 
impacts on education, the evaluation found promising results for those 
who were 14 or younger when they entered ninth grade. For these younger 
enrollees, QOP increased rates of high school completion and engagement 
in postsecondary education or training. Likewise, the evaluation found 
beneficial impacts at a number of sites participating in the 
demonstration. Most noteworthy is the Cleveland site, which experienced 
increased likelihoods of earning a diploma or GED and attending 
college. This site also showed beneficial impacts on some employment-
related outcomes, smoking and binge drinking rates, and the receipt of 
welfare or food stamps.

Center for Employment Training

    Young people who lack postsecondary education or vocational 
credentials face an uphill battle in the competition for jobs. The 
Center for Employment Training (CET) in San Jose, California produced 
strong positive effects on earnings over the four years after random 
assignment for youth and was replicated in new sites across the nation. 
ETA funded MDRC and BPA to collaboratively evaluate six of the 
replication sites and six more established CET sites. The study found 
that access to the program substantially increased youth participation 
in training activities.\14\ Effects were either negative or negligible 
across a range of outcomes including employment earnings, job 
characteristics, receipt of welfare, family income, marital status, 
household structure, alcohol and marijuana use, arrests, and 
childbearing over the five years after random assignment for the full 
sample and for all key subgroups, with the possible exception of 
younger youth at one site that replicated the CET model with high 
fidelity.
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    \14\ Miller, Cynthia, Johannes M. Bos, Kristin E. Porter, Fannie 
M. Tseng, Fred C. Doolittle, Deana N. Tanguay, and Mary P. Vencill, 
Working with Disadvantaged Youth: Thirty-Month Findings from the 
Evaluation of the Center for Employment Training Replication Sites, 
2003.
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    For a listing of past research, demonstration and evaluation 
projects visit ETA's Research Publication Database at http://wdr.doleta.gov/research/keyword.cfm.

Section II. Current Research

    During the past five years ETA has commissioned a variety of 
studies concerning employment and training. This section briefly 
describes some of the current research, demonstration and evaluation 
projects commissioned under the following broad categories: Labor 
Market and the Global Economy,

[[Page 505]]

Workforce Investment System Improvement, Existing and Emerging Labor 
Pools, and Program Evaluation.

Labor Market and the Global Economy

    To examine the impact of the global economy on the labor force and 
workforce programs, ETA has focused on projects that increase the 
understanding of the interaction between the labor market and the 
innovation economy. This includes methodologically rigorous projects 
that examine critical issues impacting the future of the nation's labor 
market.
    The President's High Growth Job Training Initiative which ETA 
launched in 2003 is a strategic effort to prepare workers to take 
advantage of new and increasing job opportunities in high growth, high 
demand and economically vital sectors of the American economy. This 
approach for closing skill gaps focuses on the 14 industry sectors that 
(1) are projected to add substantial numbers of new jobs to the economy 
or affect the growth of other industries; or (2) are existing or 
emerging businesses being transformed by technology and innovation 
requiring new skills sets for workers. The industry sectors include 
advanced manufacturing, aerospace, automotive, biotechnology, 
construction, energy, financial services, geospatial technology, health 
care, homeland security, hospitality, information technology, retail 
and transportation.
    Strategic partnerships form the foundation of the initiative. 
Partnerships include governors, economic development leaders, business 
and industry, educators, and the workforce investment system, who work 
collaboratively to develop solutions to the workforce challenges and 
labor shortages facing these industries. To date, ETA has invested more 
than $280 million in 149 partnerships. Each project targets the skill 
and talent needs of the high growth industries and provides the 
resources necessary to develop the capacity to train workers in the 
skills demanded by the 21st century economy. ETA is currently 
conducting an evaluation of the early investments and studying the 
implementation of the High Growth Job Training Initiative. The study 
will document best practices, lessons learned and project outcomes.
    The Building Talent, Jobs and Entrepreneurs for Growth in the New 
Economy demonstration project aggressively stimulates and accelerates 
both job and business growth by focusing on high growth targeted 
industries. The demonstration project being implemented by Lorain 
County Community College is developing a system of resources that 
addresses workforce development needs, promotes growth of existing 
businesses (especially small and medium businesses), and creates an 
environment that supports, nurtures, and values entrepreneurs. All 
three components, pursued with equal vigor, create a compelling design 
for comprehensive workforce and economic development that virtually 
ensures a thriving economic future.
    The Growing American Through Entrepreneurship (GATE) Project (known 
as Project GATE) is an innovative demonstration project in 
collaboration with the Small Business Administration to help emerging 
entrepreneurs in rural and urban communities achieve the American dream 
of owning their own business. Economic freedom is the foundation for 
individual success and prosperity. Project GATE supports economic 
freedom through promoting individual entrepreneurship. Project GATE 
seeks to energize local small business creation and help diverse urban 
and rural populations create, support and expand small businesses 
through the One-Stop Career Centers in three States, Pennsylvania, 
Maine and Minnesota. The random assignment project is composed of three 
phases: (1) The Implementation Design Phase which included developing 
the microenterprise package, selecting demonstration sites, detailing 
demonstration implementation plans, training demonstration staff, 
designing the process, impact, and benefit-cost analyses, and 
developing survey instruments for follow-up surveys; (2) The 
Demonstration Implementation Phase which included full implementation 
by the three sites; and ( 3) The Evaluation Phase where results of the 
project are being analyzed.
    The Lifelong Learning Account (LiLA) Pilot is a demonstration 
project being implemented in the State of Maine. LiLAs are individual 
asset accounts that leverage funds from employers and workers to 
finance education and training so that workers can upgrade their skills 
to meet the needs of business and industry while helping to advance 
their own careers and earnings potential. The demonstration with the 
State of Maine seeks to enhance the current mix of services provided by 
the State's One-Stop Career Centers by closely connecting LiLAs to 
employers, incumbent workers, community organizations, educational 
providers, and new sources of revenue for career development services.

Workforce Investment System Improvements

    The Evaluation of the WIA Performance Measurement System has two 
broad goals: (1) To assess the effectiveness of the current WIA 
performance measurement system; and (2) to identify alternative 
measures that might more effectively accomplish the aims of the system. 
The study will provide details of the WIA performance accountability 
system and explore the performance measurements systems' influences on 
partnerships and provider arrangements, service design and delivery and 
program outcomes.
    The Evaluation of the Impact and Cost-Effectiveness of Self-
Directed Services is studying the impact and cost-effectiveness of 
self-directed services. The evaluation includes both quantitative and 
qualitative analyses. The heart of the research design entails the 
estimation of the impacts of the use of self-directed services by 
comparing the outcomes of a large sample of self-directed services 
users who are UI claimants with a comparison group of claimants who do 
not use these services. The analysis is supported by a range of 
analytic components, including the administration and analysis of a 
survey of local areas to characterize self-directed service systems, 
the analysis of administrative data from a variety of sources for large 
samples of self-directed services users and the comparison group, the 
administration and analysis of a survey of self-directed service users 
(including employers and job seekers) to supplement what is available 
from administrative sources, and multiple rounds of site visits to a 
selected sample of local areas to provide an in-depth characterization 
of self-directed service systems.
    The Strengthening the Connections between UI Remote Services and 
One-Stop Services demonstration research project aims to strengthen the 
connections between remote unemployment insurance (UI) services and 
One-Stop Career Center services through development of collaborative 
procedures and customer-centric services that promote rapid employment. 
The demonstration seeks to: (1) Better connect UI to One-Stop Career 
Centers via data sharing and service provision making effective use of 
information gathered via the Internet for work registration and other 
potential services; (2) utilize labor market information and industry 
analysis to enhance the connection of UI claimants to targeted 
industries; (3) expand One-Stop Career Center and workforce development 
partnerships by

[[Page 506]]

appropriately connecting UI claimants to programs and services for 
which they may be eligible; and (4) help unemployed workers reconnect 
more rapidly with employment and supportive services.
    The grants to Intermediary Faith-Based and Community-Based 
Organizations build connections and help promote and sustain 
collaborations between grassroots faith-based and community-based 
organizations (FBCOs) and the people they serve with the One-Stop 
Career Centers. To evaluate the success of these efforts, ETA launched 
an evaluation to examine the 12 grants awarded in 2004 and the grants 
given to four intermediary organizations that received extensions in 
2004. The main goal of the evaluation is to provide information on 
whether the grants are effective in promoting sustainable 
collaborations among FBCOs, the One-Stop Career Centers, and employers 
as well as to determine which strategies were particularly effective, 
in what ways, and under what conditions.

Existing and Emerging Labor Pools

    The aging of the baby-boom generation, in combination with other 
demographic trends, is resulting in slower labor force growth. These 
circumstances make it even more critical that every available worker 
join the workforce to enable the continued competitiveness of American 
businesses in the 21st century. Therefore, it is critical to reach out 
to every available worker including older workers, immigrants, 
Hispanics, limited English proficient individuals, ex-offenders, among 
others, and ensure that all workers have the education, training, and 
skills needed to fill the jobs of the 21st century and strengthen 
America's competitiveness in a global economy.
    The Limited English Proficiency and Hispanic Worker Initiative 
(LEPHWI) selected five sites to test unique and innovative strategies 
for serving individuals with Limited English Proficiency (LEP) (those 
who do not speak English as their primary language and who have a 
limited ability to read, speak, write, or understand English) and 
Hispanic Americans, specifically, those who lack basic and occupational 
skills needed by high-growth occupations. The demonstration program is 
targeted to incumbent workers, new job entrants or youth who lack the 
language, basic skills, and occupational skills necessary to succeed in 
the 21st century workplace. The demonstration program emphasizes the 
use of innovative contextualized learning strategies which 
simultaneously provide language and occupational skills training that 
open career opportunities and pathways for LEP and Hispanic Americans. 
The evaluation of the LEPHWI is assessing the effectiveness of the 
contextualized learning strategies as well as participant outcomes.
    The Agribusiness Collaborative Demonstration Project being 
implemented in Tulare County, California aims to secure year-round 
employment for migrant seasonal farm workers as well as secure an 
employment bridge between seasonal agricultural work and seasonal non-
agricultural work. An evaluation of the demonstration project will 
measure the outcomes in terms of employment, earnings, retention, and 
the success of the cross-training model in providing re-occurring year-
round employment for farm workers.
    The Evaluation of the Prisoner Reentry Initiative is a random 
assignment impact evaluation examining the development of employment-
centered programs for ex-offenders and formally testing the 
effectiveness of faith-based organizations in serving ex-offenders re-
entering their communities. Specifically, the PRI seeks to reduce 
recidivism by helping non-violent, former prisoners find work and 
stable housing when they return to their communities. Key components of 
the evaluation include an examination of PRI grantees and their 
partners; the principal approaches to organizing, implementing, 
operating and administering PRI projects; the patterns of cooperation 
and linkages that evolve between PRI projects and partners such as the 
One-Stop system, the criminal justice system, local employers, and 
other stakeholders; PRI participants and the services they receive; and 
the short-term outcomes of PRI, including employment, degree 
attainment, housing, substance abuse, and recidivism.
    The Older Worker Study is an international research project that 
will provide an overview of national policy towards older workers in 
the U.S. labor force, and will be compared to about 20 Organization for 
Economic Co-operation and Development countries. The international 
comparative analysis will help inform public policy for keeping older 
workers engaged in the workforce.
    The Women in the Workforce research project is determining the 
extent to which highly-skilled and highly-educated women are leaving 
the workforce to attend to family needs. Highly-skilled and highly-
educated women who have left the workforce represent a ready, skilled 
source of labor for a variety of high growth industries facing a 
shortage of skilled workers. The project is documenting the extent of 
the problems these women face which contribute to them leaving the 
workforce in their prime working years, their demographic 
characteristics, and the occupations and industries impacted. The study 
is also examining industry best practices to keep highly-skilled and 
highly-educated women in the workforce, or to ease their transition 
back from an extended leave.

Program Evaluation

    ETA program evaluations contribute to the improvement of service 
delivery interventions of State and local WIA programs, and ultimately 
contribute to improved outcomes. ETA evaluations are coordinated with 
evaluations of WIA carried out by the States. Results from evaluation 
studies support continuous improvement of and inform policy and 
investment decisions.
    The Evaluation of Apprenticeship includes a survey of registered 
apprenticeship sponsors and visits to five States to identify current 
issues, concerns and conditions in the field, including the degree to 
which registered apprenticeship is integrated with other workforce 
development activities. The evaluation provides, for the first time, 
systematic information on: (1) Sponsor views (particularly in new high 
growth industries); (2) the costs and benefits of apprenticeship; (3) 
types of data maintained; (4) linkages with the One-Stop system; (5) 
administration of the apprenticeship system; and (6) what sponsors 
would like to see changed.
    The Evaluation of the Trade Adjustment Assistance (TAA) Program is 
a six-year study intended to generate information that will serve 
multiple purposes and aid in the development of: (1) Administrative 
guidance; (2) technical assistance; and (3) legislation and budgetary 
proposals for program reauthorization in 2007. The evaluation includes 
a qualitative analysis focusing on activities at the State and local 
level and a non-experimental net impact study. The evaluation is 
examining participant characteristics, program practices, management 
issues, as well as outcomes and impact of TAA including a quasi-
experimental impact analysis using a matched comparison group.
    The Evaluation of Rapid Response Services provides systematic 
information on rapid response services for dislocated workers by 
examining how such services are organized, funded, and implemented, as 
well the challenges States and localities encounter in providing rapid 
response services. The evaluation includes

[[Page 507]]

surveys of State and local areas engaged in conducting rapid response 
services.
    The Youth Offender Evaluation develops cross-site analysis of 
selected Round One, Two and Three demonstration project sites. The 
evaluation assesses the Youth Offender demonstration's success in 
effectively providing core reentry services, employability skills, and 
employment for youth offenders, gang members and youth at risk of gang 
or court involvement. The evaluation consists of a project model study 
and an outcomes study.
    For a listing of current research, demonstration and evaluation 
projects visit ETA's Research, Demonstration and Evaluation Projects 
Web site at http://wdr.doleta.gov/research/keyword.cfm.

Section III. Future Research Priority Areas

    This section of the Strategic Plan focuses on the six priority 
areas for research, demonstration and evaluation projects for the next 
five-year period. The six priority areas include: Integration of 
Workforce and Regional Economic Development, Methods of Expanding U.S. 
Workforce Skills, Increasing Labor Market Participation of 
Underutilized Populations, Using State-Level Administrative Data to 
Measure Progress and Outcomes, Post-secondary Education and Job 
Training, and Unemployment Insurance in a Global Economy. It is 
important to note that specific projects under the six priority areas 
will be identified and determined each program year and planned for in 
accordance with available resources.

Integration of Workforce and Regional Economic Development

    Workforce development programs have been the responsibility of the 
Department of Labor while economic development programs have been under 
the purview of the Department of Commerce. ETA's Workforce Innovation 
in Regional Economic Development (WIRED) Initiative is an approach to 
better coordinate workforce development and regional economic 
development and improve access to post-secondary education and skills 
development necessary for workers to succeed in innovation economies. 
By opening access to post-secondary education and skills training, 
workers will have expanded employment and advancement opportunities and 
businesses will have the skilled workers they need. Post-secondary 
education and training is explored further in a subsequent section.
    Following are several suggested research projects to evaluate the 
effects of integrating workforce investment and economic development:
     Measurement of integration success;
     Regional differences in economic performance and 
effectiveness;
     Causes of innovation ``hot spots''; and
     Effects of immigration on the economy and the labor force.

Measurement of Integration Success

    A key component of the President's High Growth Job Training 
Initiative, the Community-Based Job Training Grants and the WIRED 
Initiative is rooted in partnerships among business, education, the 
workforce system and economic development. One option to measure 
integration success is to conduct a long-term evaluation of these 
initiatives to look at evidence of the effect of the partnerships and 
the role they have on training outcomes and regional economic stability 
and growth. ETA has taken initial steps towards measuring integration 
through the High Growth Job Training Initiative early State evaluation 
and WIRED Initiative evaluation.

Regional Differences in Economic Performance/Effectiveness

    The question of why some regions do better than others has been the 
subject of intensive study in many branches of economics. International 
economic development studies look at this problem in relation to 
different countries around the globe. Within the United States, studies 
in entrepreneurship focus on the roots of Silicon Valley and how 
Silicon Valley can be cloned in other States.
    One approach to this research is to look at the jurisdictional 
challenges and interests that prevent collaboration on regional 
economic interests. In some areas, political jurisdiction issues stand 
in the way of regional economic considerations. Potential research 
questions include: Which regions have organized their economic and 
workforce activities along economic boundaries versus political 
jurisdictions? What governance vehicles are being used and how are they 
set up? How have these regions been able to overcome barriers that get 
in the way of working along economic boundaries? How should regional 
workforce boards re-align along economic regions versus political 
jurisdiction? What federal rules block regional workforce and economic 
development systems from organizing along economic jurisdictions versus 
political jurisdictions? How might Federal programs better support a 
more integrated strategy at the regional level?

Causes of ``Innovation Hot Spots''

    Much evidence shows that educational clusters and innovation are 
linked to workforce development. For instance, Silicon Valley was 
started by partnerships between Stanford and the University of 
California (Berkeley) with regional businesses. The Boston corridor was 
sparked by partnerships between MIT, Harvard and businesses. North 
Carolina benefited from partnerships between Duke, the University of 
North Carolina, and innovators. However, other educational clusters, 
such as those in Chicago and New York, have not led to innovation hot 
spots.
    A research project could be conducted that examines the reasons for 
the development of ``hot spots:'' Is it university research and 
development? Is it government institutions? Is it the workforce system 
in the area? Much can be learned from the National Innovation 
Initiative proposed by the Council on Competitiveness.\15\ One major 
question is whether the public workforce system is the right platform 
for initiating development of hot spots. If so, what is the role of the 
public workforce system? Is it possible that the community college is a 
better forum? In that case, resources should be directed further at 
community colleges.
---------------------------------------------------------------------------

    \15\ Council on Competitiveness Home Page, http://www.compete.org, Accessed 8/17/2006.
---------------------------------------------------------------------------

    A start to such research would be to look at examples of the impact 
of regional economic development on disadvantaged populations, such as 
in the WIRED regions in Indiana, Michigan, Alabama, and Mississippi. 
Are there places where the workforce investment system has played a key 
role in regional economic transformation? Innovation hot spots could be 
compared to other communities in order to have a baseline for 
comparisons. This would be an excellent subject for a short-term 
research paper.

Effects of Immigration on the Economy and Labor Force

    A potential research topic is the role of DOL in immigration in 
relation to workforce development. There are three possible roles. The 
first role could be to inform the U.S. population of the effect of 
immigration on the economy and wages. A second role could be to assist 
immigrants in assimilation, using Canada as a model. A third role is to 
facilitate labor market clearing so that employers would have the 
workers they need.

[[Page 508]]

    Also, it may be valuable to examine the role of faith-based and 
community based organizations in helping immigrant populations 
assimilate into the workforce. Many faith-based and community-based 
organizations that work with immigrants have strong cultural 
connections within the community and can be valuable partners in 
outreach, English language classes, bridging cultural barriers, and 
other supportive services immigrants need as they transition into the 
U.S. labor force.
    The latest studies on the effects of immigration on wages, by 
Professor Giovanni Peri of the University of California-Davis, show 
that immigrants increase the wages of native-born Americans by 
expanding aggregate demand. Professor David Card of the University of 
California-Berkeley and Dr. Pia Orrenius of the Dallas Federal Reserve 
find similar results. Studies showing that the wages of some Americans 
are adversely affected, such as those by Harvard's Professor George 
Borjas, show only a 4 percent negative effect on average among the 
lowest-paid workers. Implications of all these studies need to be 
examined as a group.
    Another research topic is immigration patterns. Immigrants who 
initially came into California or Texas, for example, have been 
migrating to Iowa and other States in search of better jobs. Such 
migration helps the functioning of regional labor markets. The markets 
are more efficient when workers migrate to the locations where more and 
better jobs are available. ETA's New American Centers Demonstration 
Project in Arkansas and Iowa is an initial step towards looking at this 
issue. New Americans Centers aim to assist immigrants in becoming a 
part of the local community through employment and immigration 
assistance. The purpose of the research demonstration is to speed the 
transition of immigrants into communities, promote stability and rapid 
employment with good wages, and enhance economic development.
    Another proposed research study relates to the issue of community 
colleges securing resources from the One-Stop system in order to pay 
for immigrant education/training programs. Many immigrants want to 
learn English in order to better assimilate and have better job 
opportunities. However, community colleges and volunteer systems often 
have limited capacity to accommodate student enrollments.\16\ Other 
immigrants wish to come and enter the skilled trades, such as plumbing, 
construction, and electrical work, areas where there is a shortage of 
workers in some parts of the United States. What is the extent of the 
problem, and how can it be solved?
---------------------------------------------------------------------------

    \16\ California Community Colleges Chancellor's Office Press 
Release (September 10, 2002), Community Colleges Experience Record 
Enrollments While Funding Concerns Mount, Accessed 3/1/2007.
---------------------------------------------------------------------------

    Another research paper could examine all the workforce implications 
of immigration, including possible roles for DOL that do not duplicate 
the roles of other Federal agencies that deal with the issue.

Methods of Expanding U.S. Workforce Skills

    Global competitiveness requires that we increase the skills of the 
U.S. workforce so that we retain our current competitive advantage. Our 
students are falling behind in international tests at the primary and 
secondary school levels.\17\ Furthermore, high school graduation rates 
in some parts of the country are below 70 percent, including Alaska (68 
percent), Florida (67 percent), Alabama (65 percent), Louisiana (64 
percent), Tennessee (63 percent), New Mexico (63 percent), Mississippi 
(63 percent), New York (61 percent), Georgia (61 percent), South 
Carolina (60 percent), and the District of Columbia (60 percent).\18\ 
Much of the responsibility for educating young people rests with the 
States, local school districts, and the Department of Education. 
However, once students drop out of high school with inadequate skills 
or education and join the ranks of the unemployed or work 
intermittently for low wages, DOL programs need to deal with the 
associated problems.
---------------------------------------------------------------------------

    \17\ TIMSS: Trends in International Mathematics and Science 
Study (1999 & 2003), U.S. Department of Education, National Center 
for Education Statistics, Accessed 3/1/2007.
    \18\ U.S. Department of Education, National Center for Education 
Statistics (2006), The Condition of Education 2006, NCES 2006-071, 
Washington, DC: U.S. Government Printing Office.
---------------------------------------------------------------------------

    Furthermore, DOL is aware that education is ongoing, and is part of 
a life-long process. The skills required by our workforce are rapidly 
changing due to changing technology. Furthermore, there is high job 
turnover within our labor force. In 2005, out of 133 million nonfarm 
wage and salary jobs, there were 57 million new hires and 55 million 
separations,\19\ among the most in the industrialized world. New jobs 
often require new skills, and our workforce needs the means to acquire 
them.
---------------------------------------------------------------------------

    \19\ Job Openings and Labor Turnover: November 2006, Bureau of 
Labor Statistics News Release, January 10, 2007.
---------------------------------------------------------------------------

    ETA is planning research that should help develop policy to address 
the problems of low wages due to lack of skills in the following five 
broad areas:
     Measuring the effectiveness of credentialing;
     Occupational projections;
     Career ladders;
     Limits of capacity to train in certain occupational areas; 
and
     Technology-Based Learning.

Measure Effectiveness of Credentialing

    A credential is easy to measure when it is in the form of a degree 
from a four-year undergraduate program, a graduate program, or a 
community college program. But credentials from less-formal programs 
are more difficult to measure. A research topic to explore is teaching 
skills and how learned skills are being translated into credentials. 
One way of doing this is to look at the nature of Information 
Technology (IT) credentialing. The industry has data on credentialing 
for various IT skills. There are other general, industry-recognized 
credentials that it may be useful to study. Another way to explore this 
is to conduct a demonstration project that links General Educational 
Development (GED) preparation and attainment with access to post-
secondary education and employment in high-demand occupations. Yet 
another option is to compare employment outcomes of youth who obtain a 
High School Diploma with those who obtain a GED.

Occupational Projections

    Occupational projections for the next ten years are published every 
two years by the Bureau of Labor Statistics (BLS). BLS projects 
employment for all occupations and indicates the typical level of 
educational attainment of workers in those occupations. The latest 
projections show a growth in high and low skilled occupations. In 
addition to the BLS projections, there are various private analyses and 
projections that offer different perspectives, detail and time 
horizons. A suggested research project to be conducted in collaboration 
with the BLS could examine a variety of occupational data projections 
and analyses to identify the consensus outlook for setting training 
strategy and policy.

Career Ladders

    The panel proposed doing additional research on the subject of 
career ladders. The paper would investigate sectoral strategies as 
related to career ladders, as in the work done by the State of Oregon 
and the City of West Palm Beach. The paper would mine various 
demonstration grant data for what has been successful, such as H-1B 
grants, High Growth Job Training Grants,

[[Page 509]]

Community-Based Job Training Grants, and the WIRED Initiative.

Limits of Capacity-to-Train in Certain Occupational Areas

    Certain high-return subjects in community colleges, such as 
nursing, are vastly oversubscribed. Although it costs far more to run a 
nursing program than an art program, colleges have to charge 
approximately the same amount per course taken. Community colleges, 
therefore, have an incentive to channel students into low-cost courses 
rather than expand the number of slots in high-return courses.\20\
---------------------------------------------------------------------------

    \20\ Vaughan, George B (2005), ``(Over)Selling the Community 
College: What Price Access,'' The Chronicle of Higher Education, 52 
(10), P. B12.
---------------------------------------------------------------------------

    The purpose of the Community-Based Job Training Grants is to build 
the capacity of community colleges to train in areas of demand. An 
evaluation of this investment, $125 million per year, should examine 
the effectiveness of this strategy. The study of this type would 
conduct an evaluation using random assignment techniques.
    A number of questions worth researching include: Is teacher 
availability a problem? How can community college resources be 
integrated with workforce development in these high-need and high-
return occupations? What market failure is at work that causes 
community colleges to turn away applicants to high-return occupations 
that are in such need by society?

Increasing Labor Market Participation of Underutilized Populations

    Older workers, people with disabilities, stay-at-home parents, 
people living in rural areas, and immigrant groups have lower than 
average rates of participation in the labor force. The United States, 
at 15.6 percent in 2006 (15.5 percent in 2005), has the second highest 
percentage of senior citizens over 65 participating in the workforce. 
In most industrialized countries the ratio is between 1 and 8 percent.
    One important issue for women, seniors and individuals with 
disabilities is the flexibility of the labor market, and the extent 
that it permits telecommuting, part-time jobs, and other means of 
customized employment to fit the needs and abilities of the workers 
while simultaneously meeting the needs of employers. Other populations 
such as ex-offenders, substance abusers, high-school dropouts, and 
other disadvantaged youth face unique challenges and significant 
barriers to employment. A suggested research project could examine 
certain efforts aimed at assisting these individuals including the role 
that faith-based and community organizations play in connecting 
individuals to employment and training opportunities. One-Stop Career 
Centers could also be essential in demonstrating the universal 
strategies that have proven successful in assisting job seekers with 
complex barriers to employment (such as individuals with disabilities, 
homeless individuals, TANF recipients, and older workers) to 
successfully achieve employment outcomes. An examination of these 
issues could be included as part of a comprehensive evaluation of the 
WIA programs.
    There are a host of educational challenges to increasing labor 
force participation rates for specific population groups. These will be 
discussed below under ``Post-Secondary Education and Job Training''.

Using State-Level Administrative Data to Measure Progress and Outcomes

    One of the most valuable sources of data is State-level 
administrative data from UI wage records. Data are available in all 
States for about five years and in some States as long as 25 years. 
Generally speaking, these data are precise because they are earnings 
reports of employers not surveys that are based on workers' 
recollections, which are often inaccurate.
    Some States, such as Florida, California, Texas, and Washington 
have merged UI wage records data with educational data from community 
college transcripts and in some cases from K through 12th grade making 
it possible to see from the merged data what education levels have 
resulted in what levels of earnings.
    This is a valuable source of information that has not been fully 
used. Louis Jacobson et al.\21\ did a study of the returns to courses 
taken at community colleges in Washington State, but data from other 
States have not been analyzed. The Jacobson study found a seven percent 
increase in earnings from certain courses taken in community colleges. 
By linking education data, UI wage records, and workforce program data 
it is possible to examine longitudinal performance outcomes of 
education and training programs.
---------------------------------------------------------------------------

    \21\ Jacobson, Louis, Robert LaLonde, and Daniel Sullivan, Do 
Displaced Workers Benefit From Community College Courses? Findings 
From Administrative Data and Directions for Future Research, Working 
Paper, 2005.
---------------------------------------------------------------------------

    The use of administrative databases rather than using surveys to 
conduct research presents numerous advantages. People cannot be 
expected to remember their grades and salaries from a decade ago (or 
more), but these data are available from the State databases. Further, 
sometimes people do not want to tell the truth about earnings if they 
have tax avoidance problems or problems with documentation. Each State 
database contains millions of records, far more than a researcher could 
obtain through a survey. Research using administrative data is 
particularly cost-effective because the data already exist.
    Another potential use of linked administrative data is for the 
evaluation of existing government programs. ETA plans to conduct a 
linked administrative data evaluation of the WIA formula programs. 
Through the use of quasi-experimental research methods, including 
closely-matched comparison groups, ETA will assess the net-impacts of 
the receipt of WIA core/intensive services and the incremental impacts 
of participating in WIA training on participant earnings, employment, 
and retention. ETA is assessing the appropriate methodologies and 
necessary data sources to conduct this evaluation with the goal to 
publish an interim report, including impact estimates, by the end of 
2008.

Post-Secondary Education and Job Training

    The 21st century economy demands higher levels of education and 
skills from American workers than at any other time in history. The 
fastest growing jobs, on average, require a postsecondary credential--a 
vocational certificate or other credential, or an associate or higher 
degree. As the demand for workers with specialized skills and training 
grows, some economists fear that America is facing a ``skills gap,'' a 
situation in which the demand by employers for skilled workers outpaces 
supply. Employers are having difficulty filling jobs with workers who 
have the skills they require. Fields like health care, information 
technology, and advanced manufacturing have jobs and solid career paths 
left untaken due to a lack of people qualified to fill them. Therefore, 
access to post-secondary education and job training is becoming even 
more critical for workers to obtain the required skills for American 
businesses to remain competitive.
    Educational achievement in high school and beyond is a key 
predictor of success in the labor market. For example, in 2006, the 
unemployment rate for high school dropouts was 6.8 percent versus 3.0 
percent for individuals with an associate's degree,

[[Page 510]]

and only 2.0% for those who had earned a bachelor's degree. Moreover, 
average earnings also greatly increase with higher levels of education.
    ETA is evaluating a new method of providing occupational training: 
Career Advancement Accounts (CAAs). CAAs are self-directed accounts 
that enable current and future workers to gain the skills needed to 
successfully enter, navigate, and advance in 21st century jobs. 
Accounts will be available to workers entering the workforce or 
transitioning between jobs and careers, to incumbent workers in need of 
new skills to remain employed or to move up the career ladder, and to 
out-of-school youth to restart their education or to begin a vocational 
training program.
    This approach to occupational training is a fundamental departure 
from the traditional WIA practices of sequence of services and ITA-
based occupational training. To understand the comprehensive nature of 
such a change, ETA will conduct a randomized controlled trial 
evaluation of the current WIA system. The evaluation will seek to 
examine the employment and earnings of three groups: (1) Those who 
receive traditional WIA services; (2) those who receive an enhanced 
training account; and (3) a control group of non-WIA participants. ETA 
will also assess whether the WIA services group can be further examined 
to determine earnings, employment, and retention impacts for a core/
intensive participant group, a training participant group, and an ``any 
WIA service'' summary group. The evaluation will begin in the fall of 
2007 with short-term impact results projected to be delivered to ETA in 
2012.
    Also, ETA is interested in the long-run impacts of occupational 
training. ETA is in the process of extending the evaluation of the ITA 
experiment. The extension would be a longitudinal follow-up study that 
examines the impacts of the three ITA treatments on the original 
participant groups and would introduce a quasi-experimental, but 
closely-matched control group to the evaluation to help determine the 
incremental net-impacts on earnings, employment, and retention of 
training on the ITA experiment participants. ETA will begin this 
project in the fall of 2007.
    Suggested topics for research projects include:
     ``Ages and Stages'' of lifelong learners;
     How people learn, and what they learn;
     The value of career and technical education;
     How to train diverse populations quickly;
     Analyze research of the Institute for Educational Sciences 
(IES), Department of Education; and
     Partnerships with the Department of Defense, IES, 
Foundations, and others.

``Ages and Stages'' of Lifelong Learners

    While many workers manage transitions between different jobs 
successfully on their own, others need help. There are some workers who 
may have completed certain careers and who want to do something 
different such as retired math and science professionals who want to 
teach. Suggested research include analyzing the transitions between 
different jobs, how workers get from one stage to another, and what is 
the best way to facilitate transitions to new careers and to discover 
any obstacles that prevent such transitions from happening. ETA is 
implementing a demonstration project with Western Governors University 
to increase the number of qualified mathematics and science teachers 
for unfilled teaching jobs in rural areas. The project will recruit and 
assist professionals in transitions between jobs that lack teaching 
certificates, or other qualifications, to complete their teaching 
degree requirements.
    Another research topic suggests examining attitudes about lifelong 
learning, about learning and having increasing levels of knowledge 
among diverse populations and/or generations. The major policy research 
issue is about ETA investments in individuals and types of learning. 
Further, it is also important to examine how ETA serves different 
groups and different learners at different stages of their lives. For 
example, the millennial generation learns in a very different way than 
the baby-boomer generation. Understanding such differences will assist 
ETA to design and implement policies and programs that are tailored to 
different learning generations and styles and ultimately improve 
program effectiveness and performance outcomes.

How People Learn and What They Learn

    Just a few decades ago most learning took place in classrooms, for 
people of certain ages, with books and a blackboard. Today, learning is 
enhanced by technology and therefore can take place on computers in the 
home where students are of all ages, online materials can replace 
books, and blackboards are now white. This change has profound effects 
on training.
    Determining how people learn and how technology makes learning 
accessible is a research topic to examine as it can inform investment 
in educational systems, models, or approaches that work particularly 
for occupational skills training. With distance learning far more 
common, it becomes far easier to institute lifelong learning programs. 
Computers make tracking e-learning results simpler. Examples of 
proposed research topics include:
     Industry competency models;
     What workers need to know--general capital versus firm-
specific capital (i.e., employers will train on job-specifics but want 
employees to already possess computer skills such as Word or Excel, for 
example);
     On-demand learning;
     Remediation/literacy--Are new ways of remediation needed? 
How are falling literacy levels and more complex employment reading 
levels posing problems for the workforce?
     English as a Second Language (ESL); and
     Motivation to learn.

How To Train Quickly; How To Train Diverse Populations

    The Department of Defense (DOD) has an enormous occupational 
training establishment paralleling much of what community colleges do. 
DOD has to train vast numbers of recruits to do a wide range of tasks, 
from cooking to maintaining equipment to piloting fighter planes. 
Suggested research includes examining the effectiveness of DOD long-
term learning systems. What do they know and do that ETA can learn 
from?
    While the workforce investment system in the past has focused 
primarily on short-term occupational training leading to rapid 
reemployment, the realities of the global labor market and the economic 
restructuring from traditional manufacturing economies to more 
innovation-based economies may require ETA to test longer-term training 
approaches. One such approach, lifelong learning accounts (LiLAs), are 
employer-matched individual asset accounts that finance lifelong 
learning so that workers can achieve their career goals and advance 
into family-sustaining jobs. LiLAs are workplace-based, with employers' 
matches leveraging employees' contributions, and a potential for third-
party contributions. ETA is conducting, in collaboration with the State 
of Maine and the Council for Adult and Experiential Learning (CAEL), a 
two-year pilot test of this concept. The primary goal of the pilot is 
for the State's One-Stop Career Centers to take a lead role in 
establishing a State-based delivery system for supporting LiLAs.

[[Page 511]]

Another approach is the Career Advancement Accounts discussed earlier.

Analyze Research Done by the Institute for Educational Sciences (IES), 
Department of Education

    In addition to learning from DOD, ETA could analyze research done 
by the Institute for Educational Studies (IES) of the U.S. Department 
of Education. The Department of Education commissions scientific 
studies of learning effectiveness and examines what works in schools 
and professional development. For example, MDRC has performed a study 
of literacy education in 9th grade for IES. They tested two curricula 
with 9th graders who could not read, with the results having 
applications to illiterate adults.

Partnerships With DOD, IES, Foundations, and Others

    A number of Federal and State government agencies and foundations 
are examining education and training. As well as DOD and IES, some 
State agencies are doing research in these areas. The Ford Foundation, 
the Bill and Melinda Gates Foundation, the Smith Richardson Foundation, 
and the Pew Foundation, among others, are all interested in education. 
One way to leverage research dollars would be to work with these other 
entities. It may be possible to get questions added to their studies or 
surveys, for example. ETA has collaborated with other Federal agencies 
such as the Department of Health and Human Services on projects 
targeted to welfare recipients and low-wage workers. ETA is currently 
collaborating with the Joyce Foundation on the Transitional Jobs 
Reentry Demonstration Project and with the Robert Wood Johnson 
Foundation on the Jobs to Careers Initiative. ETA will continue to 
explore opportunities to collaborate with other entities on common 
research projects.

Unemployment Insurance

    The Federal-State UI program has managed a careful balance between 
its role as a safety net and its employment disincentive effects. Some 
think its role as a safety net is inadequate while others think it goes 
too far. In contrast, unemployment insurance systems elsewhere have 
tremendous disincentives to reemployment. In the United States, 12 
percent of the unemployed have been out of work for more than a year. 
This is far too many, but it compares favorably to Germany, where 54 
percent have been unemployed for over a year; Italy, where the ratio is 
52 percent; and France, where it is 43 percent.
    Suggested research topics include:
     The efficacy of the current UI system for the 21st century 
workforce;
     The effect of unemployment benefits on the duration of 
spells of unemployment; and
     Further UI research.

The Efficacy of Current UI System for the 21st Century Workforce and 
Economy

    A suggested research project is to evaluate how UI responds to the 
21st century economy. Is UI a safety net, something more, or something 
less? Ownership ideas should be evaluated, with a system similar to a 
401(k) plan or a health savings account, where employees would be able 
to keep the unused funds in the account. Is UI viable as an income 
replacement and an economic stabilizer? Given the structural changes in 
the economy, the labor force, and the needs of employers, is there a 
structural response needed in the UI program to increase its value to 
employers, unemployed workers, and the economy? Is a Federal-State 
partnership still viable and relevant in the 21st century? Is it 
complicated to have 53 different State systems versus one national 
system?
    Additional research suggested includes a determination of how to 
ensure all the incentives are moving in the right direction. What if 
the UI system did not exist? What would workers do when they lose their 
jobs? What do entrepreneurs and risk takers do now when things do not 
work out, because they are not covered by UI? How would a UI support 
system work for entrepreneurs (high risk employment)?
    Many alternative possibilities exist for UI. One idea to consider 
is a UI system reconstituted as a hybrid between income replacement and 
wage insurance. ETA plans on exploring the potential impacts of income 
replacement and wage insurance programs by conducting a study of the 
wage subsidy or wage insurance component of the Trade Adjustment 
Assistance program. Such an evaluation could examine the employment, 
retention, and earnings of program participants compared to a 
comparison group of like individuals. The content and timing of the 
study will be heavily influenced by possible TAA reauthorization. 
Another idea is to consider moving away from an all or nothing approach 
as the Temporary Assistance for Needy Families (TANF) program has done 
with varying levels of UI. One suggestion is to conduct an examination 
of recently introduced legislation that provides an alternative for the 
UI program.

Disincentives and Incentives To Work

    There has been a significant amount of work in the area of 
incentives and disincentives of UI. What is not known is the role that 
UI plays in people's lives across each segment of the population. For 
example, is UI no longer needed for some? Does it need to be expanded 
for others? Further exploration in these areas is recommended as well 
as more information about the particular aspects of the program on 
which the disincentives and incentives would focus.

Further UI Research To Consider

    Examining how uncovered workers deal with unemployment is an area 
of research ETA has not undertaken. A suggested research project would 
compare workers who are eligible with those ineligible for UI benefits 
(or those who received with those who did not receive benefits). ETA 
has not made this kind of comparison. Possible research includes a 
random assignment study or a quasi-experimental net impact study among 
two different States with different UI payout rates to examine this and 
all of the UI research questions raised. Naturally, the first step 
would be to do a feasibility study. A survey could be implemented to 
see whether individuals would pay for individual UI savings accounts 
dedicated to spells of unemployment.
    Other future research might include: A continuation of the Internet 
Initial Claims Evaluation to see if there is a segment of the 
population that the UI system fails to serve in those localities where 
in-person claims filing is no longer an option (an extension or 
continuation of the study could include an examination of the 
advantages and disadvantages of benefits dispersal through direct 
deposit and ATM delivery which several States have begun); studies that 
evaluate the elimination of fraud or other improved integrity efforts; 
studies that assess the impact of false hits on the national new hire 
directory; studies to measure the effectiveness of UI benefit and tax 
payment accuracy; studies that develop an optimum method for States to 
determine which individuals to pursue for overpayments using the new 
hire directory; and studies that determine the characteristics of 
employers who do not respond to UI agency inquiries during the 
adjudication of separation issues.

[[Page 512]]

Appendix A

Leading Business, Government and Academia Economists

    On December 16, 2005, the Employment and Training Administration of 
the U.S. Department of Labor assembled a panel of economic experts to 
discuss future directions for research on workforce issues. Assistant 
Secretary Emily Stover DeRocco chaired the meeting. The following table 
lists the names of experts from government, business and academia who 
attended the meeting and their organizations.

------------------------------------------------------------------------
               Economist                           Organization
------------------------------------------------------------------------
Gordon Berlin..........................  MDRC.
Ron Bird*..............................  U.S. Department of Labor.
Diana Furchtgott-Roth..................  Hudson Institute, Inc.
Randall Kempner........................  Council on Competitiveness.
Richard McGahey........................  Ford Foundation.
Alan Moghissi..........................  Institute for Regulatory
                                          Science.
Demetra Nightingale*...................  Institute for Policy Studies/
                                          Johns Hopkins University.
Deborah van Opstal.....................  Council on Competitiveness.
Rick Shangraw..........................  Decision Theater/Arizona State
                                          University.
Jim Streeter...........................  Institute for Regulatory
                                          Science.
Daniel G. Sullivan.....................  Federal Reserve Bank of
                                          Chicago.
Nancy Welch............................  Morrison Institute for Public
                                          Policy/Arizona State
                                          University.
------------------------------------------------------------------------
* While unable to attend the meeting due to inclement weather, these
  individuals were provided drafts of the research plan and their
  comments are captured in the plan.

[FR Doc. E7-25563 Filed 1-2-08; 8:45 am]
BILLING CODE 4510-FM-P