Citation URL: http://www.urban.org/HarryHolzer

The Workforce Investment Act (WIA) officially expired in 2003 but has not yet been reauthorized. With a new administration and Congress due in 2009, what should they consider regarding workforce development and the disadvantaged population? This brief reviews the arguments for a workforce development system, examining both the strengths and weaknesses of the current WIA program. Among the proposals are expanded funding, and planning grants which states could use to target industries and sectors with unmet demands for skilled workers. They would then identify potential "pathways" for different groups of disadvantaged workers to meet those demands.

Low-wage adult workers have trouble getting and keeping higher-paying jobs. Most lack the basic skills and education needed to move up, but certain kinds of assistance might give some the edge they need to break the pattern. In this essay, Holzer and Martinson recommend competitive federal matching block grants that reward states for developing new advancement systems which are linked to state workforce development structures. They would also require partnerships with employers and training providers, including community colleges.

Low-wage adult workers have trouble getting and keeping higher-paying jobs. Most lack the basic skills and education needed to move up, but certain kinds of assistance might give some the edge they need to break the pattern. In this summary, Holzer and Martinson recommend competitive federal matching block grants that reward states for developing new advancement systems which are linked to state workforce development structures. They would also require partnerships with employers and training providers, including community colleges.

While most evidence suggests that immigration has had a modest negative effect on black employment, especially for those without a high school diploma, changes in immigration law will probably not improve job prospects for young blacks, Senior Fellow Harry Holzer told the U.S. Commission on Civil Rights. He offered six suggestions for policymakers looking to improve outcomes for young African Americans, such as improving their early work experience and occupational training with high-quality career and technical education.

For several election cycles, office seekers have debated how to cultivate well-paying jobs for working-class voters, and this year is no exception, either on the presidential campaign trail or in statehouses across the country. Urban Institute researchers can provide facts and nonpartisan perspectives on the health of the job market, job training programs, and the state of the skilled workforce.

This paper, written for the Workforce Alliance in Washington, D.C., analyzes data on recent employment and wage trends, as well as projections from the Bureau of Labor Statistics, to analyze the likely future demand for workers in "middle-skill" jobs –- i.e., those requiring more than secondary school but less than a bachelor's degree. Contrary to recent assertions that demand for middle-skill jobs will shrink dramatically (creating an "hourglass" or "dumbbell" labor market), we find that demand for such jobs will remain quite robust. The growth in supply of workers with these skills will also likely shrink as baby boomers retire and are replaced by immigrants. Thus, education and training programs that help less-educated workers gain these skills remain a worthwhile investment.

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In testimony on the ramifications of inadequate investments in workforce development, Senior Fellow Harry Holzer told a House Appropriations subcommittee that the very low earnings and employment of millions of Americans generate high poverty rates and impose huge costs on the U.S. economy. The research evidence, while somewhat mixed, shows that many public investments in workforce development are cost-effective at raising the earnings of low-income workers.

Low-wage workers in the United States are falling further and further behind their higher-earning counterparts. This brief examines a discussion paper for The Hamilton Project, proposing a new federal funding stream to identify, expand, and replicate the most successful state and local worker advancement initiatives. Under the proposed Worker Advancement Grants for Employment in States (WAGES ) program, the federal government would offer up to $5 billion annually in matching funds for increases in state, local, and private expenditures on worker advancement initiatives.

This paper proposes a new federal funding stream to identify, expand, and replicate the most successful state and local initiatives designed to spur the advancement of low-wage workers in the United States. In the Worker Advancement Grants for Employment in States (WAGES) program, the federal government would offer up to $5 billion annually in matching funds for increases in state, local, and private expenditures on worker advancement initiatives. To gain funding, states would have to develop local advancement "systems", partnerships would be developed between local training providers and financial supports for the working poor—including child care, transportation, and stipends for working students—would have to be funded. Initially, the WAGES program would require states to compete for federal grants; states would have an incentive to innovate and use information from other initiatives. The federal government would provide substantial technical assistance and oversight.

In this paper we use a very large matched database on firms and employees to analyze the use of temporary agencies by low earners and its impact on their employment outcomes. Our results show that, while temp workers have lower earnings than others while working at these agencies, their subsequent earnings are often higher—but only if they manage to gain stable work with other employers. Furthermore, the positive effects seem mostly to occur because those working for temp agencies subsequently gain access to higher-wage firms, and they persist over time.

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