Post-Employment Education and Training Models in the Welfare-to-Work Grant Program

POST-EMPLOYMENTEDUCATION AND TRAININGMODELS IN THE WELFARE-TO-WORK GRANT PROGRAMJohn TrutkoDemetra Smith NightingaleBurt S. BarnowMay 1999The Urban Institute2100 M Street, N.W.Washington, D.C. 20037This paper was prepared for the U.S. Department of Labor, Employment and Training Administration, under Contract No. F-5532-5-00-80-30. Opinions expressed are those of the authors and do notrepresent official positions of the Department of Labor, or the Urban Institute or its sponsors. TABLE OF CONTENTSA. INTRODUCTION....................................................................................................................1B. OVERVIEW OF THE WtW GRANT PROGRAM................................................................2C. RATIONALE FOR POST-EMPLOYMENT EDUCATION ANDTRAINING IN WtW..........................................................................................................61.TANF Provides Strong Incentives, As Well As Challenges,for Local Programs to Implement Post-Employment Services ............................62. Characteristics of the Welfare Recipients Suggest That ManyAre Unlikely to Immediately Qualify for Stable, Well-PayingJobs with Advancement Potential.........................................................................103.Labor Market Trends Suggest That Without Further Education and Training,Many Welfare Recipients May Be Trapped in theLow-Skill/Low-Wage Jobs....................................................................................144.Research Suggests That Traditional Pre-Employment Strategies Used inWelfare-Employment Programs Have Had Only Limited Impacts onEmployability, Welfare Receipt, and Poverty Status..........................................15D. POST-EMPLOYMENT EDUCATION AND TRAINING .................................................201.Defining Employment Broadly.............................................................................212. Defining Post-Employment Activities..................................................................213.Post-Employment Education Options...................................................................264.Post-Employment Occupational Training.............................................................30E. STUDY IMPLICATIONS AND CONCLUSIONS FOR POLICY AND PROGRAMFEATURES THAT SUPPORT POST-EMPLOYMENT ACTIVITIES........................40REFERENCES.............................................................................................................................44 iiEXECUTIVE SUMMARYThis paper, which is intended for state and local officials responsible for programs funded underfederal Welfare-to-Work (WtW) grants, synthesizes what is currently known about providing educationand training after an individual is employedΧone type of post-employment serviceΧand providessuggestions on models and strategies that can be effective in promoting occupational mobility and careeradvancement for welfare recipients.There are four rationales for considering education and training services after an individual hasbegun work, rather than always assuming that such activities should occur before entering a job:! The Temporary Assistance for Needy Families (TANF) program providesstrong incentives, as well as challenges, for local programs to implement post-employment services. In response to the TANF individual work requirements,mandated state work participation rates, and the five-year lifetime limit on individualbenefits, most state welfare agencies have adopted ΑWork First≅ policies that encourageor require TANF recipients to enter a job immediately.! The characteristics of the welfare population suggest that many are unlikely toqualify immediately for stable, well-paying jobs with advancement potential. Many welfare recipients have fairly low reading and mathematics ability and lack strongeducation and occupational credentials. Many also have personal and family problemsthat can interfere with work. Nonetheless, most welfare recipients can and do work. But they tend to obtain low-wage jobs, can experience difficulty retaining jobs, andgenerally remain at the low end of the labor market in low-paying/low-skill jobs withlittle chance for career advancement.! Labor market trends suggest that without further education and training, manywelfare recipients may be trapped in low-skill/low-wage jobs. Well-paying jobsfor workers with low or moderate skills that were once available in manufacturing havebeen replaced by lower-paying jobs in the service sector. Higher-paying jobs go tothose with the most technical skills.! Traditional pre-employment strategies used in welfare-employment programs inthe past have had only limited impacts on employability, welfare receipt, andpoverty status. While a number of programs have made modest progress towardincreasing earnings and employment, they generally have not resulted in sustained long-term employment, occupational advancement, or incomes above poverty.In this report, a