ERIC Number: ED029980
Record Type: Non-Journal
Publication Date: N/A
Reference Count: N/A
A Benefit Cost Analysis of the South Carolina MDTA Program. Preliminary Report.
South Carolina Univ., Columbia. Bureau of Business and Economic Research.
Manpower Development and Training Act (MDTA) programs completed in 1965 were evaluated by benefit-cost ratio and internal rate of return. Initial annual earnings differential figures at $525,650 and $719,629 were projected into the future at various rates of promotion and various rates of discount on the benefit stream. Resulting lifetime benefits (for 30 working years) range from $2,556,110 at a zero promotion rate and 20 percent discount rate on the first figure to $15,162,977 at a 3.5 promotion rate and a 5 percent discount rate for the $719,629 figure. These projected benefits may be compared with the total program cost of $3,097,616. On the other hand, the internal rates of return on the training outlay of $3,097,616 range from 16.29 percent at zero rate of promotion for the $525,650 figure to 26.20 percent at the 3.5 rate of promotion for the $719,629 figure. An alternative for the cost outlay would have to exceed the rate of return if the training were to be considered economically unprofitable. It was concluded that, under the circumstances and assumptions of the study, training conducted under MDTA is worthwhile with benefits greatly exceeding costs and internal rates of return high. Assessments of individual programs are also provided. (JK)
Descriptors: Adult Vocational Education, Conceptual Schemes, Cost Effectiveness, Evaluation Criteria, Evaluation Methods, Federal Programs, Models, Program Costs, Program Evaluation, Research Methodology, Salary Wage Differentials
Bureau of Business and Economic Research, University of South Carolina, Columbia, South Carolina 29208 (without charge)
Publication Type: N/A
Education Level: N/A
Sponsor: South Carolina State Employment Security Commission, Columbia. Research Dept.
Authoring Institution: South Carolina Univ., Columbia. Bureau of Business and Economic Research.
Identifiers - Location: South Carolina
Identifiers - Laws, Policies, & Programs: Manpower Development and Training Act