Responses to Personal Reemployment Accounts (PRAs): Findings from the Demonstration States

摘要

Personal reemployment accounts (PRAs) are a strategy intended to help unemployed workers build job skills and find work. Targeted to a subset of recipients of Unemployment Insurance (UI) benefits, PRAs of $3,000 allow recipients to choose how and when to spend funds from their account to purchase reemployment services, including training. Workers may also elect to receive the funds as cash bonuses for reentering the workforce and keeping a job. In 2004, the U.S. Department of Labors Employment and Training Administration (ETA) launched the PRA demonstration project to examine this strategy of fostering good employment outcomes for UI recipients. The lessons from this evaluation of the PRA experience are of value to policymakers and program administrators as the concept of self-managed accounts in the workforce investment system continues to evolve beyond this specific demonstration. In fall 2006, ETA launched a demonstration in select states of Career Advancement Accounts (CAAs). Like PRAs, CAAs are self-managed capped accounts of $3,000, but they are renewable for a total of up to $6,000 over two years. Unlike PRAs, CAAs can be used only for education and training and do not include a bonus component. Despite the differences between the two accounts, the PRA experience can shed light on potential strengths and weaknesses of individually managed accounts.