The Workforce Investment Act (WIA), a reformation of federal job training programs offers funds to private firms for on-the-job training (OJT) to certain adults seeking employment assistance. OJT is established through a contract between the employer and a local program that provides occupational training for a WIA participant. An employer may receive a reimbursement of up to 50 percent of the wage rate for allowing employees to participate.
The OERC is evaluating and estimating the impact of WIA-funded OJT for adults in Ohio. The study uses big data, a rich source of individual-level information, and nonparametric matching, to create high-quality comparison groups for policy evaluation. Difference in difference estimators are used to minimize bias in the study. Results show a positive impact on both employment rate (11 percentage points) and earnings ($4,500 per year) four years after completing WIA-funded on-the-job training. The report is complete and pending publication.