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LEARNING BUT NOT EARNING? THE IMPACT OF JOB CORPS TRAINING ON HISPANIC YOUTH
Author(s) -
FLORESLAGUNES ALFONSO,
GONZALEZ ARTURO,
NEUMANN TODD
Publication year - 2010
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.2009.00211.x
Subject(s) - earnings , human capital , differential (mechanical device) , economics , unemployment , demographic economics , differential effects , face (sociological concept) , labour economics , youth unemployment , training (meteorology) , job market , earnings growth , spatial mismatch , job training , vocational education , medicine , economic growth , sociology , finance , work (physics) , mechanical engineering , social science , physics , aerospace engineering , meteorology , engineering
Why did Hispanics who participated in Job Corps (JC) training not experience earnings gains like whites and blacks, despite achieving similar human capital gains? We find that the differential labor market outcomes of each group are related to the different levels of local labor market unemployment rates (LUR) they face. Furthermore, the groups exhibit differential impacts on their earnings from the LUR they face, which also vary by randomization status. We find that (a) blacks and Hispanics face higher LUR that mitigate their potential gains from JC and (b) JC “shields” whites from adverse LUR, but not blacks and Hispanics. ( JEL J24, J13, J15)