The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach

Government employment programs for low-skilled workers typically emphasize rapid placement of participants into jobs, of which many are temporary-help jobs. Using data from Detroit’s welfare to-work program and the Chernozhukov-Hansen instrumental variables quantile regression method, we find that n...

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Main Authors: Houseman, Susan N., Autor, David H, Kerr, Sari
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Published: University of Chicago Press 2018
Online Access:http://hdl.handle.net/1721.1/113706
https://orcid.org/0000-0002-6915-9381
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author Houseman, Susan N.
Autor, David H
Kerr, Sari
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Houseman, Susan N.
Autor, David H
Kerr, Sari
author_sort Houseman, Susan N.
collection MIT
description Government employment programs for low-skilled workers typically emphasize rapid placement of participants into jobs, of which many are temporary-help jobs. Using data from Detroit’s welfare to-work program and the Chernozhukov-Hansen instrumental variables quantile regression method, we find that neither direct-hire nor temporary-help job placements significantly affect the lower tail of the earnings distribution. In the upper tail, direct-hire placements yield sizable earnings increases for over half of participants, while temporary help placements yield significant earnings losses at higher quantiles. Our results cast doubt on the efficacy of employment programs’ exclusive focus on rapid job placement and their widespread reliance on temporary-help placements.
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spelling mit-1721.1/1137062022-09-26T15:26:31Z The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach Houseman, Susan N. Autor, David H Kerr, Sari Massachusetts Institute of Technology. Department of Economics Autor, David H Kerr, Sari Government employment programs for low-skilled workers typically emphasize rapid placement of participants into jobs, of which many are temporary-help jobs. Using data from Detroit’s welfare to-work program and the Chernozhukov-Hansen instrumental variables quantile regression method, we find that neither direct-hire nor temporary-help job placements significantly affect the lower tail of the earnings distribution. In the upper tail, direct-hire placements yield sizable earnings increases for over half of participants, while temporary help placements yield significant earnings losses at higher quantiles. Our results cast doubt on the efficacy of employment programs’ exclusive focus on rapid job placement and their widespread reliance on temporary-help placements. 2018-02-16T16:14:20Z 2018-02-16T16:14:20Z 2016-10 2012-03 2018-02-16T12:49:25Z Article http://purl.org/eprint/type/JournalArticle 0734-306X 1537-5307 http://hdl.handle.net/1721.1/113706 Autor, David H. et al. “The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach.” Journal of Labor Economics 35, 1 (January 2017): 149–190 © 2016 University of Chicago Press https://orcid.org/0000-0002-6915-9381 http://dx.doi.org/10.1086/687522 Journal of Labor Economics Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf University of Chicago Press Other repository
spellingShingle Houseman, Susan N.
Autor, David H
Kerr, Sari
The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title_full The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title_fullStr The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title_full_unstemmed The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title_short The Effect of Work First Job Placements on the Distribution of Earnings: An Instrumental Variable Quantile Regression Approach
title_sort effect of work first job placements on the distribution of earnings an instrumental variable quantile regression approach
url http://hdl.handle.net/1721.1/113706
https://orcid.org/0000-0002-6915-9381
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