Low-Income and Welfare Client Priorities: Patterns of Earnings and Welfare Receipt for Workforce Investment Act Participants

Abstract

This paper examines labor market and welfare experiences of participants in Workforce Investment Act (WIA) programs who exited in July 2000-June 2001. Administrative data from six states on earnings and welfare receipt are used to trace the experiences of participants in the two years prior to and in the year following exit from WIA. Individuals are classified as “Adults” or “Dislocated Workers” and by whether they received “Training” or less intensive services under WIA. We find that Adults have large employment gains associated with participation in WIA, and Adults in Training have particularly large earnings gains. Following losses, employment and earnings of Dislocated Workers largely recover following WIA participation. Welfare receipt declines, especially for those in Training activities. Despite some differences, similarities between states in basic patterns are striking.