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Maximizing Customer Choice in Training Programs: ITA Experiment Overview

Explore the impact of customer choice in training programs through the ITA Experiment, assessing tradeoffs and outcomes in program design and implementation. Learn about the key findings and implications for policy and practice.

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Maximizing Customer Choice in Training Programs: ITA Experiment Overview

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  1. The Effects of Customer Choice:First Findings from the Individual Training Account (ITA) ExperimentMathematica Policy Research, Inc.Social Policy Research AssociatesPresenter: Irma Perez-JohnsonDOL Workforce Innovations ConferencePhiladelphia, PA – July 11-13, 2005

  2. Policy Background:The Workforce Investment Act • Key objective was to promote informed customer choice • Required use of ITAs to give customers choice of training program • Customer selections to be made from Eligible Training Provider lists • Established Consumer Report Systems to provide information on programs

  3. Overview of the ITA Experiment • Goal was to assess important tradeoffs in the design of ITA approaches • Tested 3 approaches side-by-side in 8 LWIAs • Customers randomly assigned to approaches • Approaches selected to: • Reflect spectrum of emerging ITA approaches • Promote innovation in ITA program design

  4. Approaches Tested

  5. Evaluation Data Sources • Implementation Study* • Study Tracking System* • Analyzed data for 7,922 study participants • Follow-Up Survey • Unemployment Insurance Records * Data sources for interim report

  6. Methodology • Estimate impacts on intermediate and final training outcomes • Intermediate outcomes: • Participation in counseling and training • Training choices • Final outcomes: • Completion of training • Customer satisfaction • Employment and earnings • Receipt of UI, public assistance • Cost of counseling, training

  7. Responses to the ITA Approaches • Most customers came in with strong ideas about training • When counseling was voluntary, few customers used it • Counselors tended to defer to customer preferences • Local staff preferred Approach 2 (Guided Choice) • Private vendors repackaged their programs in response to caps • Little response from community colleges, universities

  8. Mandatory Counseling Discouraged Use of ITAs *** Difference relative to A2 is statistically significant at 0.01 confidence level

  9. Training Costs Highest Under Approach 1, Lowest Under Approach 2 NOTE: Cost estimates do not include WIA administrative costs or cost of ITA counseling. *** Difference relative to A2 is statistically significant at 0.01 confidence level

  10. Limited Differences in Training Choices by Approach • ITA customers chose similar occupations • Private schools were the dominant provider regardless of approach • Approach 3 customers slightly more likely to choose community colleges • Approach 1 customers chose slightly longer programs

  11. Remaining Questions • Do more counseling and/or higher caps lead to better customer outcomes? • Does lack of counseling lead to poorer customer outcomes? • What is the most cost-effective approach to structuring ITAs?

  12. Remainder of ITA Experiment • Follow-up survey • Administrative records • Final report (summer 2006)

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