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ERIC Number: ED542949
Record Type: Non-Journal
Publication Date: 2011-Nov
Pages: 48
Abstractor: As Provided
Policies to Reduce High-Tenured Displaced Workers' Earnings Losses through Retraining. Discussion Paper 2011-11
Jacobson, Louis S.; LaLonde, Robert J.; Sullivan, Daniel G.
Hamilton Project
High-tenured displaced workers often experience significant earnings losses that persist for the rest of their working lives. A well-targeted training initiative has the potential to substantially reduce permanent earnings losses for those displaced workers who have the academic preparation, work experience, and interest to complete high-return retraining, with a rate of return on par with, if not larger than, that reported for formal schooling of young people. Current governmental training programs do not provide adequate resources to finance the long-term training needed by displaced workers to meaningfully offset their losses, nor do they provide the right incentives to get longer-term retraining. This paper presents five comprehensive reforms targeted specifically at retraining displaced workers experiencing significant earnings loss: (1) establish a Displaced Worker Training (DWT) Program to provide sizeable grants for longer-term training; (2) use honest brokers to assess and counsel grantees; (3) provide incentives and performance standards for participants and institutions; (4) evaluate training programs and disseminate best practices; and (5) shore up community colleges' capacity to provide high-quality training, especially during tough economic times. Appended are: (1) How we set the training subsidy under the displaced worker training program; and (2) Estimating annual costs of the displaced worker training program. (Contains 7 tables, 5 figures and 41 endnotes.)
Hamilton Project. Available from: Brookings Institution. 1775 Massachusetts Avenue NW, Washington, DC 20036. Tel: 202-797-6484; Fax: 202-741-6575; e-mail:; Web site:
Publication Type: Reports - Descriptive
Education Level: Adult Education; Postsecondary Education; Two Year Colleges
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: Brookings Institution, Hamilton Project
Identifiers - Location: Washington