Comparison of the Effectiveness of JTPA Training Programs Administered underTuition versus Performance-Based Contracts in the City of Pittsburgh and Allegheny County

摘要

The study examined comparative outcomes for participants of JTPA Title IIAclassroom vocational training provided under tuition vs. performance-based contracts in the Pittsburgh, PA., metropolitan area. The major outcomes analyzed were training completions, placement rates, and earnings following training. Major findings were (1) performance-based contracting increases training completion rates, leads to more job placements for participants, and reduces the time spent both in training and job search. (2) Average annual earnings increased for participants following training under both contracting approaches, but overtime, tuition-based trainees earned higher annual incomes on average than performance-based trainees. (3) Therefore, performance-based contracts strengthen program vendors' stakes in finding jobs for their trainees. On the other hand, performance-based payments may lead vendors to encourage trainees to accept lower quality placements in order to increase their profits.