LEARNING BUT NOT EARNING? THE IMPACT OF JOB CORPS TRAINING ON HISPANIC YOUTH

Abstract

Why did Hispanics who participated in Job Corps (JC) training not experience earnings gains like whites and blacks, despite achieving similar human capital gains? We find that the differential labor market outcomes of each group are related to the different levels of local labor market unemployment rates (LUR) they face. Furthermore, the groups exhibit differential impacts on their earnings from the LUR they face, which also vary by randomization status. We find that (a) blacks and Hispanics face higher LUR that mitigate their potential gains from JC and (b) JC “shields” whites from adverse LUR, but not blacks and Hispanics. ( JEL J24, J13, J15)