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The literature review examined studies related to cash transfers and training voucher programs, through a search of the literature using the bibliographic databases/search engines Google Scholar, JSTOR, and ProQuest Social Science Premium and searched for terms expressing the concepts of interest: cash transfers and training vouchers, as well as specific training voucher programs identified in the search. The resources database of the National Bureau of Economic Research was also searched for additional relevant works. These studies were added to the ones identified in the broader literature search and the most relevant studies were selected for this review. After preliminary test searches retrieved few relevant articles, a broad approach was taken to retrieve more than 1,000 studies, reports, and articles. These included numerous non-relevant articles, requiring extensive scanning of titles and abstracts to determine relevance. Relevant literature was then reviewed in full based on the following criteria:

• For the cash transfer component of the search, the focus was on direct cash transfer programs, not on tax credits or other conditional transfers;
• The selected studies examined outcomes limited to employment, earnings, or education, excluding health-outcomes-only studies;
• For the training voucher component, the focus was on programs that provided money vouchers instead of direct training; and
• In both searches, the interventions were implemented in industrialized countries.

A summary description of studies included in this report appears in Appendix A. The description includes each study’s target population, research design, and its key findings.

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Key Takeaways

• Training voucher programs demonstrate generally, but not overwhelmingly, positive impacts on employment outcomes. Participants usually experience incremental gains in employment rates and salaries.
• Voucher programs in which participants receive more counseling appear to be more successful. While an early follow-up study of ITA participants found little difference in outcomes between participants receiving higher and lower levels of counseling, a longer-term impact study found that those receiving the most intense counseling spent more time employed in higher-wage jobs.
• It is difficult to draw conclusions about outcome and impact for cash transfer programs. Fewer cash transfer programs have been implemented in the U.S., so only limited data is available. In addition, variations in types of cash transfer programs and the types of intended and measured outcomes make comparison challenging.
• Neither intervention appears to permanently reduce workforce participation. Voucher programs may temporarily reduce workforce participation as recipients pursue training and education, but the reduction is temporary. Cash transfer programs appear to have little negative impact on workforce participation and may increase entrepreneurship.
• Recipients of training vouchers and cash transfers experience individual and community benefits outside of employment impacts. For example, military members whose spouses participate in a CAA program experience higher retention rates, reducing turnover-related recruitment and training costs for the military. Recipients’ children may also experience educational, social, and health benefits. Recipients of cash transfers have improved health outcomes and children experience positive outcomes as well, including greater educational attainment and higher earnings in adulthood.

Citation

Manhattan Strategy Group. (2021). Training Vouchers, Cash Transfers, and Their Effects on Employment-Related Outcomes. 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.