About The Study

In 2021, the Chief Evaluation Office (CEO) partnered with the Employment and Training Administration (ETA) to fund contractor Manhattan Strategy Group to conduct a literature review on the employment impacts of training vouchers and cash transfer programs.

Training voucher and cash transfer interventions have the potential to improve individuals’ economic circumstances. To better understand the impact these interventions can have, researchers reviewed recent literature (2010 – 2020) on U.S.-based programs using either a voucher system or direct cash transfers. The review also included a limited number of older studies and studies describing the impact of these interventions in similar economic contexts, including Canada and Germany. Outcomes of interest for this review include employment, earnings, and education.

Researchers identified studies of four types of voucher programs.

• Individual training accounts (ITAs) allow for customer choice in paying for outside training from government-approved sources.
• Individual development accounts (IDAs) are personal savings accounts aimed at low-income earners. An employer or the government may match IDA deposits to incentivize saving for educational, professional, or financial goals.
• Career advancement accounts (CAA) are vouchers that fund career-oriented licenses, certifications, or associate degrees. The current MyCAA program has targeted spouses of active-duty servicemembers, the National Guard, and reserve members in lower pay grades.
• Personal reemployment accounts (PRAs) fund employment-related assistance for unemployment insurance (UI) recipients. The recipient may receive some PRA funds as a bonus after starting a new job.

In studies of direct transfer interventions, researchers focused on unconditional transfers, those untethered to income level or participation in an activity such as applying to jobs.

This Department of Labor-funded study was a result of evaluation technical support priorities. It contributes to the labor evidence-base to inform employment and training programs and policies and addresses Departmental strategic goals and priorities.

Project Duration: 60 Months

Contract End Date: September 2023

Contractor: Manhattan Strategy Group, with IMPAQ International

For More Information: ChiefEvaluationOffice@dol.gov

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.