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The discussion paper explores issues related to research on application or user fees in programs administered by U.S. Department of Labor’s (DOL’s) Employment and Training Administration (ETA), based on a review of regulations, guidance, and selected research concerning such fees. The paper reviews available literature from those sources; briefly covers the purposes, general principles and practices related to application or user fees; summarizes possible factors related to research on such fees; and suggests some possible research activities on use of fees in an ETA program.

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Key Takeaways

• The federal government charges fees for applications and services across a wide range of programs. The goals for imposing such fees can include traditional revenue generation and restraining demand or stimulating it due to improved perceptions of program quality.
• Application or user fees are seldom used in ETA programs because they lack legal authority to charge fees to participants and for labor exchange activities. However, fees can be charged to employers under Foreign Labor Certification programs and under WIOA Title I for certain customized services delivered to employers at the local level. Additionally, a study of the Adult and Dislocated Worker programs under prior law (the Workforce Investment Act) found that 10 of the 28 local workforce areas in the study charged nominal fees for certain employer services, and some staff in these local areas said the fees both raised needed revenue and improved businesses’ perceptions of service quality.
• Possible factors related to the effect of such fees fall into three categories: (1) participation factors related to how fees may affect the use of program services or engagement in related activities; (2) program operation factors related to the administration of fees and alignment of fees with program goals; and (3) external factors outside the jurisdiction of program administrators and participants that can influence how fees may affect program operations or outcomes.
• Future research regarding the use of fees for customized services for employers in local one-stop systems under WIOA Title I could explore all three factors described above and questions such as whether the use of fees is associated with perceptions of increased service quality by employers, whether introducing fees affects employer participation, and whether fee collection methods and administrative burden affect employers’ willingness to pay and participate.
• Future potential research projects include a descriptive study on the landscape of fee usage, a pilot or demonstration study to determine the challenges in implementing fees and what types of fee-for-service activities would garner employer interest; and a feasibility study on use of more rigorous methods (such as a randomized control trial or a quasi-experimental design) to test use of fees.

Citation

Pető, B., Rolle, E., Liodos, J., Kline, T., Ingle, G., Berk, J., Rosenberg, L., Holcomb, P. (2024). Summit Consulting. Considerations Regarding Future Research on Use of Fees in Employment and Training Administration (ETA) Programs: Discussion Paper. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.