Kentucky Adult Education Program: Labor Market Outcomes Study
Discover the impact of Kentucky's Adult Education Program on labor market outcomes through a comprehensive study conducted by experts. The program offers GED prep, English language courses, and family literacy services to individuals aged 18 and older with basic skill deficiencies. Enrollment trends and methodology are outlined, emphasizing comparisons of employment, wages, and receipt of unemployment benefits before and after enrollment. Specific results are presented for females aged 18 to 32, highlighting significant findings related to enrollment and financial outcomes.
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Presentation Transcript
The Effects of Kentuckys Adult Education Program The Effects of Kentucky s Adult Education Program and TRAINS on Labor Market Outcomes and TRAINS on Labor Market Outcomes September 26, 2024 September 26, 2024 Michael W. Clark, Ph.D. Kenneth R. Troske, Ph.D. Katie Scott
Overview The 2022 General Assembly passed HB1, which included language directing the Education and Labor Cabinet (ELC) to study the effectiveness of Kentucky s state-sponsored workforce development programs. Programs receiving more 50% of funds from the state Adult Education TRAINS Bluegrass State Skills Corporation 2
Kentuckys Office of Adult Education (KYAE) Services Provided GED Prep Courses and Free Testing English Language Courses Family Literacy Primarily Service individuals who: are aged 18 or older, have a basic skill deficiency, and have not completed high school or earned an equivalent level of education, or who are an English language learner. 3
Adult Education: Enrollment 60 Any Hours 12 or More Hours 50 40 Enrollees (000s) 30 20 10 0 2009 2011 2013 2015 2017 2019 2021 4
Methodology Compare Labor Market Outcomes before and after Adult Education Employment Wages if Employed Receipt of Unemployment Insurance Benefits Groups Those who enrolled in adult education Those who dropped out of a KY high school Aged 18 to 32 Similar employment and wages before enrollment 5
Methodology NOTE Enrollees may be co-enrolled in other programs Additional training and services through other programs Data on co-enrollment was not available Cannot identify separate effects of individual programs 6
Adult Education Results: Females Aged 18 to 32 12.3% 7.4% 7
Adult Education Results: Females Aged 18 to 32 $336/quarter 8
Adult Education Results: Males Aged 18 to 32 14.6% 6.2% 9
Adult Education Results: Males Aged 18 to 32 $618/quarter 10
Adult Education: Results Present Value of Income Changes Through Four Years After Enrollment $20,000 $16,852 $15,366 $15,000 $10,000 $6,599 $6,716 $6,614 $4,554 $5,441 $5,269 $5,000 $3,309 $3,251 $0 All Black Hispanic White All with ABE Females Males 11
Adult Education: Results Expenditures per Instructional Hour Increased Income Compared to Costs $100 Present Value of Additional Income 4 Years After Enrollment 2019 Costs 2022 Costs $80.16 $80 Females (All Enrollees) $5,269 $2,611 $5,655 $59.53 $60 Males (All Enrollees) $6,716 $2,611 $5,655 $36.90 $40 $27.49 Only counts 4 years of income $22.85 $19.46 $18.68 $20 Includes only Adult Education Costs $0 2014 2015 2016 2017 2018 2019 2020 2021 2022 12
Adult Education: Main Conclusions Enrollment in adult education: Higher rates of employment Higher wage rates Employment effect decays over time Results vary by gender and race/ethnicity Adult Education enrollees receive other services Impacts reflect a bundle of services Cannot say which, or what combination, of services contribute to improved labor market outcomes 13
TRAINS Established by KCTCS in 1999 Colleges develop customized training for eligible companies For-credit courses Not-for-credit courses Funding for approved projects Companies pay 25% of training costs + 10% administrative fee Colleges are reimbursed for 75% from KCTCS General Assembly appropriated $4.1 million per FY. 14
Past Research on Sectoral Training Programs Sectoral training Employers heavily involved Connecting low skilled workers to industries Include job-search assistance, career counseling, and other services Generally positive effects through two years Improved employment Increased wages 15
Methodology Compare Labor Market Outcomes before and after enrollment in TRAINS Employment Wages if Employed Receipt of Unemployment Insurance Benefits Comparison Groups For-credit enrollees Co-workers who did not enroll Age 25 to 54 16
TRAINS Results: Females, Employment 15.6% 17
TRAINS Results: Present Value of Additional Income Over 4 Years After Enrollment (Per Participant) $30,000 $25,151 $24,742 $24,261 $25,000 $20,000 $18,153 $17,302 $15,680 $15,000 $11,144 $10,000 $8,386 $5,000 $0 All Black Hispanic White Females (Lower 25th Percentile) Males (Lower 25th Percentile) 21
TRAINS Conclusions Employment among enrollees improved relative to non-enrollees Females 16 quarters after enrollment 80% of female enrollees employed 65% of female non-enrollees employed Males Prior to enrollment, enrollees were less likely to be employed than non-enrollees 16 quarter after enrollment, enrollees were as likely to be employed as non-enrollees Wages among enrollees did not improve 22
TRAINS Conclusions Limitation Prior to enrolling in TRAINS, enrollees had lower employment levels than non-enrollees Estimates may reflect effects of TRAINS and being newly employed 23
