Policy makers view public sector-sponsored employment and training programs and other active labor market policies as tools for integrating the unemployed and economically disadvantaged into the work force. Few public sector programs have received such intensive scrutiny, and been subjected to so many different evaluation strategies. This chapter examines the impacts of active labor market policies, such as job training, job search assistance, and job subsidies, and the methods used to evaluate their effectiveness. Previous evaluations of policies in OECD countries indicate that these programs usually have at best a modest impact on participants’ labor market prospects. But at the same time, they also indicate that there is considerable heterogeneity in the impact of these programs. For some groups, a compelling case can be made that these policies generate high rates of return, while for other groups these policies have had no impact and may have been harmful. Our discussion of the methods used to evaluate these policies has more general interest. We believe that the same issues arise generally in the social sciences and are no easier to address elsewhere. As a result, a major focus of this chapter is on the methodological lessons learned from evaluating these programs. One of the most important of these lessons is that there is no inherent method of choice for conducting program evaluations. The choice between experimental and non-experimental methods or among alternative econometric estimators should be guided by the underlying economic models, the available data, and the questions being addressed. Too much emphasis has been placed on formulating alternative econometric methods for correcting for selection bias and too little given to the quality of the underlying data. Although it is expensive, obtaining better data is the only way to solve the evaluation problem in a convincing way. However, better data are not synonymous with social experiments. © 1999 Elsevier Science B.V. All rights reserved.

The Economics and Econometrics of Active Labor Market Programs

Many empirical questions in economics and other social sciences depend on causal effects of programs or policies. In the last two decades, much research has been done on the econometric and statistical analysis of such causal effects. This recent theoreti- cal literature has built on, and combined features of, earlier work in both the statistics and econometrics literatures. It has by now reached a level of maturity that makes it an important tool in many areas of empirical research in economics, including labor economics, public finance, development economics, industrial organization, and other areas of empirical microeconomics. In this review, we discuss some of the recent developments. We focus primarily on practical issues for empirical research- ers, as well as provide a historical overview of the area and give references to more technical research.

/pdf/recent-developments-in-the-econometrics-of-program-42vjewfvjw.pdf

Recent developments in the econometrics of program evaluation

Background Little is known about the total population prevalence and societal costs of posttraumatic stress disorder (PTSD); this report reviews relevant literature on these topics Method A literature search of computerized databases for published reports on trauma and PTSD was conducted This literature was reviewed to find data on general population exposure to trauma, conditional risk of PTSD among those exposed to trauma both in focused samples of trauma victims and in general population samples, and the adverse consequences of PTSD Results PTSD was found to be a commonly occurring disorder that often has a duration of many years and is frequently associated with exposure to multiple traumas The impairment associated with PTSD in US samples, where the majority of research on these consequences has been carried out, is comparable to, or greater than, that of other seriously impairing mental disorders Risk of suicide attempts is particularly high among people with PTSD Available evidence suggests that the prevalence of PTSD and the adverse emotional and psychological consequences of PTSD are much greater in the many countries around the world that are in the midst of armed conflicts involving political, racial, or ethnic violence Conclusion PTSD is a highly prevalent and impairing condition Only a minority of people with PTSD obtain treatment Early and aggressive outreach to treat people with PTSD could help reduce the enormous societal costs of this disorder

/pdf/posttraumatic-stress-disorder-the-burden-to-the-individual-zqddwa19z3.pdf

Posttraumatic stress disorder: the burden to the individual and to society.

Most randomised controlled trials focus on outcomes, not on the processes involved in implementing an intervention. Using an example from school based health promotion, this paper argues that including a process evaluation would improve the science of many randomised controlled trials

/pdf/process-evaluation-in-randomised-controlled-trials-of-4zpvnznrvz.pdf

Process evaluation in randomised controlled trials of complex interventions.

https://www.nber.org/system/files/working_papers/w22595/w22595.pdf

Understanding and misunderstanding randomized controlled trials.

https://files.eric.ed.gov/fulltext/ED335488.pdf

From Welfare to Work

he nation's social welfare policy reflects an ongoing effort to balance sometimes competing objectives-alleviating poverty and promoting self-sufficiency-in a manner consistent with underlying public values about the primacy of the family and the importance of work. Concern has been growing that the welfare system has not been doing this very well, and welfare reform once again moved towards the top of the policy agenda, resulting in passage of the Family Support Act of 1988 (FSA). That the bill was passed is evidence of broad agreement about elements of the problem and its solution. That it was passed amidst acrimony and with relatively modest provisions reflects continuing disagreement about the fundamental objectives of reform. This paper discusses what economists know about the potential of one central component of the new legislation: the effort to transform welfare from a means-tested entitlement into a reciprocal obligation, in which getting a welfare check would carry with it a requirement to look for and accept a job, or to participate in activities that prepare people for work. It sets the context for this discussion by briefly outlining why this approach to reform gained support and by summarizing major policy and program alternatives.

https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.4.1.79

Work and Welfare: Lessons on Employment Programs

This article presents lessons from social experiments in the US over 30 years testing employment and training, welfare reform and social service programmes and systems. It discusses the challenges in implementing a random assignment study and strategies to overcome them, and also sets out lessons for ensuring that an experiment informs and affects policy. In laying out the ingredients for success, the article argues that creative and flexible research design skills are essential, but that just as important in a complex, real‐world context are operational and political skills, applied both to marketing the experiment in the first place and to helping interpret and promote its findings down the line.

/pdf/the-politics-of-random-assignment-implementing-studies-and-26zo1gsuj9.pdf

The politics of random assignment: implementing studies and impacting policy

Evidence-based policy is in vogue, but “evidence” can mean different things and be of very different quality. Ideally, policy decisions should be based on “reliable” evidence, but is it possible to get such evidence on important policy options? Can this be done in the real world? Will people be able to distinguish high quality evidence from hype? Will it be privileged as not just one other form of advocacy, amidst the cacophony of contentious policy debate? Can it make a difference in policy and practice? The book, Fighting for Reliable Evidence, by Judith M. Gueron and Howard Rolston, tells the story of the 45 year fight that produced positive answers to these questions. Summary: Do social programs and policies, educational curricula and other government actions actually improve targeted outcomes? This is often a difficult question to answer, but if government is to be made more effective, it is vital to figure out what works and what does not. This book tells how a diverse group of people – public officials, researchers, activists, and leaders in philanthropy – worked together over 45 years to find a way to do just that. It describes a relentless struggle – in the face of skepticism and sometimes bitter name-calling – to show that social experiments are feasible and ethical, can answer important questions, and can produce evidence that is so cut-and-dry, and so hard to fudge, that it was widely believed by Republicans and Democrats as a way to bring truth to politically and ideologically charged debates. The book focuses on welfare reform, one of the most contentious areas of social policy. In it, two insiders tell how this method was transformed from an academic idea into the gold standard for assessing real world programs. The findings, which surprised liberals and conservatives and influenced Congress and the states, included lessons specific to welfare policy and relevant to people interested in learning what works in other areas. In this story of scientific and policy innovation, allies and heroes emerge in unexpected places: social innovators in foundations seeking to produce a legacy and leverage change; civil servants determined to protect the federal treasury and maintain momentum when a new administration takes over in Washington; state officials who joined a relentless and risky fight to find out whether their own reforms paid off; researchers who pioneered a new method, before it became fashionable; and people in advocacy organizations who saw rigorous evidence as ultimately serving their constituency. Overall, the message is optimistic. Though the studies find no quick fixes to complex social problems and many questions remain unanswered, they provide a convincing antidote to cynicism. Rigorous evidence, sustained by a coalition of people of good will, helped forge a consensus for change.A description of the book can be found at the Russell Sage website.

Fighting for Reliable Evidence

To what extent should welfare-to-work programs emphasize education and training versus immediate job placement? This controversial question will be important in the 2002 debate on welfare reform. Findings from rigorous studies show that there is a clear role for skills-building activities. The key lesson is balance. Rigid job-search-first and rigid education-or-training-first programs increase employment, but the former get people jobs sooner and at lower cost and the latter do not ultimately get people better jobs. The most successful programs use a mixed strategy—where some people are urged to get a job quickly and others are offered work-focused, short-term education or training. While encouraging overall, the findings provide no basis for complacency. The failure of mandatory basic education to help high school dropouts, the lack of clear guidance on what makes training effective, and the low earnings and persistent poverty of most welfare leavers point to the continued need to identify pre- and post-employment strategies that are more successful in getting people higher-wage jobs. The implication for welfare reform is that participation standards should retain their focus on work but avoid restrictions that discourage a mixed strategy.

/pdf/the-role-of-education-and-training-in-welfare-reform-3t1ptxmqz9.pdf

Judith M. Gueron

Papers

From Welfare to Work

Work and Welfare: Lessons on Employment Programs

The politics of random assignment: implementing studies and impacting policy

Fighting for Reliable Evidence

The Role of Education and Training in Welfare Reform