The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

The text below is an excerpt from the complete document. Read the full paper in PDF format.

Abstract

While many skill-upgrade initiatives are based in the public or private education system, efforts where businesses sponsor or play a lead role in developing training also provide an important venue for skill building. This paper examines why employer-focused training is a promising strategy for boosting the earnings of low-income individuals while also providing benefits to employers. Three employer-focused models with potential for improving skills and promoting job advancement among low-wage workers are examined: incumbent worker training programs, sectoral training programs, and career ladder programs.

Introduction

Strategies to help workers advance to jobs that pay enough to support a family and also provide needed benefits are a key component of any effort to improve the economic well-being of low-income families. And, improving the skill levels of low-income individuals so they can fill these higher-paying positions is a critical aspect of job advancement. While many skill-upgrade efforts are based in the public or private education system, efforts where businesses sponsor or play a lead role in developing training—known as “employer-focused” training in this paper—are also an important venue for skill building. These efforts can also have important benefits for businesses in terms of lower employee turnover and increased productivity.

Employer-focused training can take different forms, but in these efforts businesses typically play an important role in initiating and providing demand-driven skill upgrades to their workers, either at the worksite or through working with educational institutions to design appropriate training. Different types of training can be provided through these employer-focused efforts, including qualifying training (initially preparing people for work), skill improvement training to incumbent workers, retraining for a new line of work, and training combining basic and vocational skills. This approach is distinct from more traditional individual-based or supply-driven education and training that occurs through public and private institutions. Individual-based training is typically more general and tries to give students a range of skills that can be used in different jobs, while employer-focused training gives up this generality to improve the fit of skills to specific employer needs.

In this paper, we briefly discuss what we know about job advancement for low-income workers, particularly employer-focused training, and then describe three employer-focused training models with particular promise in improving skills and promoting job advancement. We conclude with some key questions to address to assist in moving forward with this type of skill development strategy.

(End of excerpt. The entire paper is available in PDF format.)

The nonpartisan Urban Institute publishes studies, reports, and books on timely topics worthy of public consideration. The views expressed are those of the authors and should not be attributed to the Urban Institute, its trustees, or its funders.

Usage, posting and reprint of materials on the UI web site:

Most publications may be downloaded free of charge from the web site in PDF format. This information may be used and copies made for research, academic, policy or other non-commercial purposes. Proper attribution is required.

Copyright of the written materials contained within the Urban Institute website is owned or controlled by the Urban Institute. Posting UI research papers on other websites is permitted subject to prior approval from the Urban Institute—contact paffairs@urban.org.

If you are unable to access or print the PDF document please contact us or call the Publications Office at (202) 261-5687.