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This paper extends the analysis of the relationship between skills proficiency and labor market outcomes well beyond the findings in the OECD report on the United States. Among the questions it examines are the following: (1) How do proficiency levels in literacy, numeracy and problem-solving vary between and within demographic, education and occupational groups? For which subgroups is the lack of basic skills proficiency most pronounced? Do we find skill shortfalls in one of the three areas even for native-born groups with postsecondary credentials or in middle-skill occupations? (2) Do weak skill proficiencies significantly limit the ability of workers from obtaining middle-skill credentials and jobs or do those holding such jobs vary widely in their proficiencies? (3) To what extent are earnings differentials related to differentials in literacy, numeracy, and problem-solving levels, even within occupations that do and do not require some postsecondary credentials? (4) To what extent does skill proficiency correlate with worker perceptions of the skill demands of jobs? How do differentials in skill use on the job differ from measures of proficiency? How do these relationships vary across occupations? The answers to these questions highlight key facts and relationships and suggest subsequent analyses of the U.S. PIAAC micro data.

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The transitions of American youth from school to career have proved problematic for decades, especially for young men of color. Baltimore's youth have experienced chronic problems in graduating from high school and finding employment. One in four students fails to graduate high school within five years. This report argues that youth apprenticeship offers a sound strategy for improving school and career outcomes for Baltimore's youth. It describes how apprenticeship has proved effective in a range of contexts, including current state programs in Georgia and Wisconsin and comparable European programs and how a youth apprenticeship program could be fashioned in Baltimore.

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In the United States there were nearly 28,000 registered apprenticeship programs, with over 465,000 active apprentices in fiscal year 2007. Registered apprenticeship program sponsors are individual employers or groups of employers, sometimes in collaboration with unions, who: develop and run programs; recruit, screen and hire apprentices; and work with state apprenticeship agencies (SAAs) to make sure programs meet state and Federal requirements. To better understand sponsors' perspectives, the Employment and Training Administration of the U.S. Department of Labor commissioned a survey, conducted in 2007, of a random stratified sample of eligible sponsors. The survey data showed that 97 per cent of sponsors are highly satisfied with registered apprenticeship and would recommend it to other businesses. More than 80 per cent of sponsors said that they use registered apprenticeship to meet their need for skilled workers. Seventy-two per cent said that registered apprenticeship helps them know which workers have needed skills; and 68 per cent feel that the model raises productivity, strengthens worker morale, and improves worker safety. However, about a quarter of sponsors viewed apprentices' failure to complete their apprenticeship program as a significant problem. About 51 per cent of sponsors said they would like help in finding and screening applicants, and 41 per cent said they would like help in finding related instruction. About one third also identified as important several operational improvements in the registered apprenticeship system, including faster registration of apprentices, a simpler process for setting up a program, and easier multi-state registration. Sponsors generally gave high marks to their SAAs on a variety of factors but indicated their interactions with other parts of the workforce investment system were generally quite limited.

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The 2016 election heightened an ongoing debate in the United States about how best to respond to two of the foremost economic challenges of the current era: stagnant wages and a dearth of promising career prospects for American workers without a bachelor's degree. These challenges persist despite a dramatic increase in recent decades in years of schooling and sizable investments (by both the U.S. government and individual students and their families) in traditional forms of higher education. In this paper, I argue that a large-scale apprenticeship program could address these challenges, while also yielding substantial additional gains for employers and the U.S. economy. I first review the evidence on apprenticeship, which suggests that increasing the availability of apprenticeships would increase youth employment and wages, improve workers' transitions from school to careers, upgrade those skills that employers most value, broaden access to rewarding careers, increase economic productivity, and contribute to positive returns for employers and workers. I then propose policies to stimulate a large-scale expansion of apprenticeship in the United States.

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The volume from which this chapter is taken is available in VOCEDplus at TD/TNC 143.605. Show less

Young men of color have long experienced lower earnings and higher unemployment compared to young white men. Many factors have contributed to these negative outcomes: persistent discrimination, hiring practices of employers, geographic and social isolation, substandard secondary education, lack of career and postsecondary educational guidance, inadequate career and technical education, and higher incarceration rates. This paper focuses on promising strategies for improving the labor market outcomes of low-income young men of color. It outlines an employment-focused approach to improving economic opportunities and outcomes for these young men, highlighting potential policy, system and institutional reforms as well as program investments.

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Beginning in 2012, the Accelerating Opportunity (AO) initiative provided $1.6 million in grants to five US states [Illinois, Kansas, Kentucky, North Carolina, and Louisiana]. The grants were to help community colleges create career pathway programs to enroll students with low basic skills into for-credit career and technical education courses to improve their educational and employment outcomes. A rigorous and comprehensive evaluation of AO includes a non-experimental impact study, an implementation study, and a cost-benefit analysis. This first report provides key findings on the pathways, students, resources, partnerships, culture shifts, and policy developments from the first year of implementation of the initiative.

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The best prospect for improving job quality and compensation in low-wage jobs is by increasing worker productivity. This study investigates the prospects of registered apprenticeship training for raising productivity in the long-term care (LTC) industry, a high-demand, low-wage field that principally employs female caretakers. Case studies of five LTC registered apprenticeship programs and analysis of administrative data suggest that apprenticeship training improved productivity, client satisfaction, pay, and career advancement opportunities. It is less clear whether cost savings were sufficient to offset low Medicare and Medicaid reimbursement rates or remain sustainable without federal, state, or private support.

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This paper examines the role of community colleges in expanding the supply of information technology (IT) workers in the United States. Drawing on both quantitative and qualitative methods, contrasting evidence on the importance of these institutions is identified. Analysis of the 1994 and 1999 Current Population Survey and interviews with large IT employers indicate that community colleges are not adding significantly to the supply of IT workers. However, enrolment data and case studies of four community colleges suggest that students undertake a substantial amount of IT training at community colleges. While graduation rates are low, enrolment in community college IT programs is high. Moreover, there is evidence that community colleges contribute to retraining workers who are already in IT jobs, those switching to IT careers in mid-life, and those with previous bachelor degrees.

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The purpose of this paper is to examine what skills, knowledge and attitudes employers demand for entry-level workers and to consider the school's role in helping at-risk or disadvantaged youth to meet these demands. The main argument of the paper is that employers appear to be increasingly demanding higher skills for many types of jobs potentially available to at-risk young adults and that the skills of many at-risk youth are often inadequate to meet employer demands associated with good careers. While improving academic skills is critical, relying entirely on increasing academic standards within a school-based approach to remedy the skills problem is unlikely to be successful without improving student incentives to learn. Only moving to a career-based approach that emphasises well-structured work-based learning is likely to have a significant impact on the life chances of at-risk young people.

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This paper provides an outline of the United States experience with youth employment programs designed to assist transition from school to work, many of which are specifically aimed at assisting low-income youth. This review examines demand side initiatives such as job creation, work experience, and employer wage subsidy programs. The author discusses the potential effects of the programs, provides a comprehensive assessment of the evaluative evidence and explains the implications for the appropriateness of each type of approach. A central implication is that apprenticeship, internship and other school-to-work initiatives have the potential to function as successful supply and demand policies.

The volume of collected papers is indexed at TD/IRD 88.133. Show less