Return on Investment from Training Programs and Intensive Services

Abstract

This study includes the likelihood of finding a job and retaining employment as well as eligibility for unemployment benefits to estimate the return on investment (ROI) for both job training and intensive services programs. The augmented ROI for job training programs and intensive job services from California One-Stop Centers are positive. This suggests that these programs do provide benefits. The estimated augmented ROI for individuals enrolled in job training programs and intensive job services are similar. In contrast, traditional approaches that omit important employment characteristics significantly overestimate the ROI. Monte Carlo simulations show that changing program costs affect the augmented ROI for training programs but have minimal impact on the augmented ROI for intensive services.