Job Training That Gets Results: Ten Principles of Effective Employment Programs

Job Training That Gets Results: Ten Principles of Effective Employment Programs

Job Training That Gets Results: Ten Principles of Effective Employment Programs

Job Training That Gets Results: Ten Principles of Effective Employment Programs

Synopsis

Individual accounts can be categorized with respect to the incentive for their provision or with respect to their relationship to social security pensions. Combining these two approaches, social security reform using individual accounts can occur five different ways: (1) voluntary carve-outs that partially replace social security, (2) voluntary carve-outs that fully replace social security, (3) mandatory add-ons to social security through legal requirements, (4) mandatory carve-outs that partially replace social security, (5) mandatory carve-outs that fully replace social security. Of these approaches, this book, in the context of possible U.S. reforms, focuses on three: voluntary carve-outs that partially replace social security, mandatory add-ons, and mandatory carve-outs that partially replace social security. One of the themes of the book is that the effects of individual accounts depend on which type of accounts are being considered. It is important to distinguish between add-ons and carve-outs. Another dimension of the structure of individual accounts is their financial management. For either add-on or carve-out accounts, individual accounts can be managed at least three ways: the Chilean model, the Australian model, and the Swedish model. This book focuses on the Chilean and Swedish models of financial management as being the approaches most relevant for the United States to consider.

Excerpt

This is a book about the big challenges facing workforce policymakers and practitioners in the early twenty-first century.

As a practitioner on the local and state levels for more than 25 years—the last five as director of a state labor department—I have seen considerable changes in the job training world. Two areas, job training and welfare, have shown marked improvement: Our government-funded job training system has become more market-oriented and effective over time, and employment of welfare recipients has risen significantly since the federal welfare reform of the 1990s. In job training, the big challenges we now face lie in building on that market orientation and in positioning training in the face of the ongoing impact of technology and globalization on job opportunities. In welfare, the challenges lie in formulating the next stage of welfare reform, in increasing job retention, and possibly in skills upgrading for former welfare recipients.

In two other employment areas, workers with disabilities and the low-wage workforce, less progress has been made over the past 25 years. Despite the landmark Americans with Disabilities Act, unemployment among workers with disabilities has actually increased over the past decade, as has dependence of these workers on the government benefit program Supplemental Security Income (SSI). Similarly, despite extensive discussion in the press and in academia of the low-wage workforce, large segments of this workforce continue to show limited economic self-sufficiency and professionalism. Further, the skills upgrading and career ladder projects that have been tried so far have had little success in improving the skills or wages of this group.

Thus, these four areas—job training, welfare, workers with disabilities, and the low-wage workforce—each present distinct challenges for practitioners in 2005.

For five years, from 1999 to 2004, as director of California's Employment Development Department (EDD), the state's department of labor, I was involved in numerous employment initiatives, both statewide and nationwide. These were aimed at restructuring job training . . .

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