Publication of the Five-Year Research, Demonstration, and Evaluation Strategic Plan for 2007-2012, 501-512 [E7-25563]

Agencies

• Employment and Training Administration
• DEPARTMENT OF LABOR

[Federal Register Volume 73, Number 2 (Thursday, January 3, 2008)]
[Notices]
[Pages 501-512]
From the Federal Register Online via the Government Printing 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: casta.heidi@dol.gov.

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: https://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 https://
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 https://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, https://
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