The Pitfalls of Work Requirements in Welfare-to-Work Policies: Experimental Evidence on Human Capital Accumulation in the Self-Sufficiency Project

This paper investigates whether policies that encourage recipients to exit welfare for full-time employment influence participation in educational activity. The Self-Sufficiency Project ('SSP') was a demonstration project where long-term welfare recipients randomly assigned to the treatment group were offered a generous earnings supplement if they exited welfare for full-time employment. We find that treatment group members were less likely to upgrade their education along all dimensions: high-school completion, enrolling in a community college or trade school, and enrolling in university. Thus, 'work-first'; policies that encourage full-time employment may reduce educational activity and may have adverse consequences on the long-run earnings capacity of welfare recipients. We also find that there was a substantial amount of educational upgrading in this population. For instance, among high-school dropouts at the baseline, 19% completed their diploma by the end of the demonstration. Finally, we simulate the consequences of the earnings supplement in the absence of adverse effects on educational upgrading. Doing so alters the interpretation of the lessons from the SSP demonstration.welfare policy, human capital, experimental methods, earnings supplementation

Upgrading of Symbolic and Synthetic Knowledge Bases: Analysis of the Architecture, Engineering and Construction industry and the Automotive Industry in China

The degree and the way of upgrading differ widely per industry. This article tries to give some new insights in these differences by linking the concept of upgrading to that of the knowledge base. Moreover, we try to identify barriers to upgrading as well as the appropriate spatial scale on which upgrading takes place, again for different knowledge bases. We support our argument by analysing the process of upgrading in two industries in China: the AEC industry (in Beijing and Shanghai) and the automotive industry (in Shanghai). Within these industries we focus on upgrading on two levels: within firms and within projects. Our findings for both industries suggest that the principal ways of upgrading of the symbolic knowledge base are joint brainstorming in internal and external project teams and labour mobility. Major factors that hinder the upgrading of symbolic knowledge include the development stage of China, the Chinese educational system and tensions about duplication of western designs. Upgrading of the synthetic knowledge base takes mainly place via inter-company training programmes of foreign firms, technology transfer and labour mobility on the long run. A possible barrier for upgrading of synthetic knowledge, especially in the automotive industry, is that foreign firms tend to keep certain engineering activities in their home base because of the risk of knowledge leakage. However, this is changing quickly as many foreign carmakers and their suppliers invest in engineering centres in China due to an increasing demand for cars, to governmental regulations and to intensifying competition.Urban development, upgrading, automotive industry, AEC industry, knowledge economy, China.

The Impact of Outsourcing on the Japanese and South Korean Labor Markets: International Outsourcing of Intermediate Inputs and Assembly in East Asia

Applying a common empirical approach to comparable industry-level data on production, trade, and labor markets for Japan and South Korea, this paper aims to investigate the impacts of outsourcing on different sectors of the labor market focusing on differences in educational attainment. While outsourcing measures used in previous studies only take account of the outsourcing of intermediate inputs, this paper, utilizing the Asian International Input-Output Tables, incorporates the outsourcing of assembly. The econometric results indicate that outsourcing to Asia (particularly to China) has a negative impact on the demand for workers with lower education and a positive impact on the demand for workers with higher education both in Japan and Korea. Moreover, the international outsourcing of assembly has a significant impact on skill upgrading, particularly in the Korean electrical machinery sector.Outsourcing, labor demand, skill upgrading, Japan, Korea, manufacturing, Asian International Input-Output Tables

Has Education Paid Off for Black Workers?

Over the past three decades, the "human capital" of the employed black workforce has increased enormously. In 1979, only one-in-ten (10.4 percent) black workers had a four-year college degree or more. By 2011, more than one in four (26.2 percent) had a college education or more. Over the same period, the share of black workers with less than a high school degree fell from almost one-third (31.6 percent) to only about one in 20 (5.3 percent). The black workforce has also grown considerably older. In 1979, the median employed black worker was 33 years old; today, the median is 39. Economists expect that increases in education and work experience will increase workers' productivity and translate into higher compensation. But, the share of black workers in a "good job" -- one that pays at least $19 per hour (in inflation-adjusted 2011 dollars), has employer-provided health insurance, and an employer-sponsored retirement plan -- has actually declined. This paper looks at this trend and policies that would have a large, positive impact on the quality of jobs for black workers

The pitfalls of work requirements in welfare-to-work policies: Experimental evidence on human capital accumulation in the self-sufficiency project

This paper investigates whether policies that encourage recipients to exit welfare for full-time employment influence participation in educational activity. The Self-Sufficiency Project ('SSP') was a demonstration project where long-term welfare recipients randomly assigned to the treatment group were offered a generous earnings supplement if they exited welfare for full-time employment. We find that treatment group members were less likely to upgrade their education along all dimensions: high-school completion, enrolling in a community college or trade school, and enrolling in university. Thus, 'work-first'; policies that encourage full-time employment may reduce educational activity and may have adverse consequences on the long-run earnings capacity of welfare recipients. We also find that there was a substantial amount of educational upgrading in this population. For instance, among high-school dropouts at the baseline, 19% completed their diploma by the end of the demonstration. Finally, we simulate the consequences of the earnings supplement in the absence of adverse effects on educational upgrading. Doing so alters the interpretation of the lessons from the SSP demonstration

Designing Open and Distance Learning for Teacher Education in Sub-Saharan Africa: A toolkit for educators and planners

Everyone remembers a good teacher. Good teachers are the key to educational expansion and improvement. In many countries in Sub-Saharan Africa, there is an urgent need to expand the number of primary and secondary teachers. In all African countries, there is an equally important need to improve the quality of teaching. To achieve this, it is clear that new approaches to teacher education are essential. Existing institutions of teacher education will continue to play an important role, but, alone, they will not meet the goals of Education for All (EFA) by 2015. It is fortunate that, just as the twin needs to improve the quantity and quality of teachers become imperative, so new forms of education and training are becoming available. The world is witnessing a revolution in information and communication technologies (ICTs), which can offer training and support of a type and at a cost hitherto impossible to consider, and thus, must be fully explored given the scale and urgency of demand. In doing so, however, it will be necessary to build on existing and well-tested strategies, including the best models of open and distance learning. This toolkit is the third in a series of recent publications by the Africa Region Human Development Department of the World Bank to share knowledge and experience on how distance education and ICTs can support education in Sub-Saharan Africa. It emphasizes the rigorous process by which new forms of distance-education programs for teacher education can be planned and implemented. The best models of established programs are considered along with the potential for incorporating, as the means become available, new modes of communication. Most forms of teacher education, particularly those concerned with qualification upgrading and ongoing professional development, will have to be based in schools. The authors demonstrate how school-based programs, appropriately resourced and supported, have the potential not only to raise significantly the number and quality of teachers, but also to improve classroom practice and school organization, generally. The guidance and advice, which is drawn from many years of experience in design and implementation, and embraces a range of case studies from across the region, will be of considerable value to those preparing new policies and programs of teacher education and to those seeking to improve existing programs

Where Have All the Good Jobs Gone?

The U.S. workforce is substantially older and better-educated than it was at the end of the 1970s. The typical worker in 2010 was seven years older than in 1979. In 2010, over one-third of US workers had a four-year college degree or more, up from just one-fifth in 1979. Given that older and better-educated workers generally receive higher pay and better benefits, we would have expected the share of "good jobs" in the economy to have increased in line with improvements in the quality of workforce. Instead, the share of "good jobs" in the U.S. economy has actually fallen. The estimates in this paper, which control for increases in age and education of the population, suggest that relative to 1979 the economy has lost about one-third (28 to 38 percent) of its capacity to generate good jobs. The data show only minor differences between 2007, before the Great Recession began, and 2010, the low point for the labor market. The deterioration in the economy's ability to generate good jobs reflects long-run changes in the U.S. economy, not short-run factors related to the recession or recent economic policy