DOCUMENT RESUME

ED 200 793 CE 028 578

AUTHOR Taggart, Robert

TITLE Research on Youth Employment and Employability

Development. Youth Employment Policies ani Programs

for the 1890s. Background Analysis for the Department

of Labor Employment and Training Components of the

Youth Act of 1980. Youth Knowledge Development Report

2.12.

INSTITUTION Employment and Training Administration (DMA,

Washington, D.C. Office of Youth Programs.

May BO

2701:).; Tables vill not reproduce well due to small

print. For related documents see CE 028 577-579.

AVAILABLE FROM Superintendent of Documents, U.S. Government Printing

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DESCRIPTORS *Employment Patterns; Employment Potential:

Employment Problems: *Employment Programs; Federal

Legislation; Financial Support; Futures (of Society):

*Job Training; *Policy: Program Design; Program

Development: Program Effectiveness; *Youth

Employment; Youth Problems; *Youth Programs

IDENTIFIERS *Youth Act 1980

ABSTRACT

Prepared as a basic background document for an

interagency task force on youth employment, this report analyzes

youth employment policies and programs for the 1980s. The main body

of the report consists of three sections. Section 1, entitled "Policy

Perspectives on the Youth Employment Problem," contains a discussion

of pathways to career development; detours, delays, and dead ends in

youth employmentva sequential and probalistic interpretation of the

youth employment problem: the universe of need; and priorities among

needs. In section 2, "Lessons from Program Emperience," the following

topics are covered: program elements: underlying approaches;

delivery, design, and organizational lessons; and management of youth

employment and training programs. Section 3, entitled "Restructuring

and Reorienting the Youth Employment and Training System," covers new

program directions, budget and policy options, and recommendations.

Six appendixes, constituting over half the document, provide a

graphic analysis of youth employment problems, the employment and

training portions of the Youth Act of 1980, program elements,

management information systems for the local program, interest group

perspectives, and an analysis of youth program resource allocations.

(Related reports on educator and employer perspectives and youth

perspectives on factors affecting youth employment are available

separately through ERIC--see note.) (MN) *** ************* _****** ********************* ******************

Reproductions supplied by EDRS are the best that can be made

from the original document.

*** ********************************************** ********** ****** *

*
YOUTH KNOWLERE

RESEARCH ON Y

AND EMPLOYAB

Youth Employment Poli,cie

Background Analysis f_

Components of t

May
3

a

a

U S DEPARTMENT OF HEALTH

EDUCATION & WELFARE

NATIONAL INSTITUTE OF

EDUCATION

THIS DOCUMENT HAS BEEN REPRODUCED EXACTLY AS RECEIVED FROM

THE PERSON OR ORGANIZATION ORIGINATING IT POINTS OF VIEW OR OPINIONS

STATED DO NOT NECESSARILY REPRESENT OFFICIAL NATIONAL INSTITUTE OP EDUCATION POSITION OR POLICY
U S Depart-lent of Labor

Ray Marshall. Secretary

Employment and Training Administration

Ernest G. Green. Assistant Secretary for

Employment and Training Administration

Office of Youth Programs

Material contained in this publication is

n the public domain and may be

reproduced. fully or partially. without

permission of the Federal Government.

Souro?, credit is requested but not

required: Permission is required only

tO reproduce any copyrighted material

contained herein
Youth Knowledge Development Report 2.12

YOUTH EMPLOYMENT

POLICIES AND PROGRAMS FOR THE 1980s

BACKGROUND ANALYSIS FOR THE DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING COMPONENTS OF THE YOUTH ACT OF 1980

ROBERT TAGGART

April 1980

4
OVERVIEW

The Youth Employment and Demonstration Projects Act of

1977 was intended as a "stopgap" measure to mitigate the youth

unemployment crises while conducting research, evaluation

and demonstration activities which would provide the foundation

for improved programs and policies for the 1980s. YEDPA was

initially authorized for one year and then extended for two

more in order to provide time for an orderly process of review

and policy development. Under the leadership of the Vice

President, an interagency Task Force on Youth Employment worked

through 1979 carefully sifting through the evidence on youth

employment problems and programs.

This analysis was prepared as a basic background document

for the Task Force, attempting to synthesize all that was

being learned under the YEDPA "knowledge development" effort.

While the impacts of most of the carefully structured demonstrationprojects were not available in 1979, there was an

extensive body of research and evaluation material which had

been produced. Likewise, many important practical lessons

were learned from the YEDPA implementation experience. The

aim of this volume wa, to synthesize theory and practical

lessons into a foundation for legislation. Initially, the

analysis included detailed legislative recommendations, most

of which were adopted by the Department of Labor, the Vice

President's Task Force and subsequently President Carter,

leading to the submission of proposed legislation, the Youth

Act of 1980. The analysis was reworked to make it consistent

with the formulation in the Youth Act. The result is a

theoretical and practical rationale of the Administration's

proposals, as well as detail on some of the major elements.

Dimensions of the proposals will unquestionably be changed,

and the timing of legislation is uncertain, the basic parameters

will be retained. This document, then, can help in understanding and justifying these policy choices.

This volume is one of the products of the "knowledge

development" effort implemented under the mandate of the Youth

Employment and Demonstration Projects Act of 1977. The knowledge

development effort consists of hundreds of separate research,

evaluation-and demonstration activities which will result in

literally thousands of written products. The activities have

been structured from the outset so that each is self-standing

but also interrelated with a host of other activities. The

framework is presented in A Knowledve Development Plan for

the Youth Em *10 ent and Demonstration PrO'ects Act of 1977,

A Knowled e Develo ent Plan for the Youth Initia ive- Fiscal

1_ 9 an Completin e Yo A en a* A Plan or Kno

Development, Dissemination and Application in Fiscal 1980.
Information is available or will be coming available from

the various knowledge development activities to help resolve

an almost limitless array of issues, but answers to policy

questions will usually require integration and synthesis from

a number of separate products, which, in turn, will depend

on knowledge and availability of these products. A maior shortcoming of past research, evaluation and demonstration activity

has been the failure to organize and disseminate the products

adequately to assure the full exploitation of the findings.

The magnitude and structure of the youth knowledge development

effort puts a premium on organization and dissemination of

findings.

As part of its knowledge develop '-ent mandate, therefore,

the Office of Youth Programs of the Department of Labor will

organize, publish and dissmina.!:e the written products of

all major research, evaluation and demonstration activities

supported directly by or mounted in conjunction with the

knowledge development effort. Some of the same products may

also be published and disseminated through other channels,

but they will be included in the structured .aeries of Youth

Knowledge Development Retorts in order to facilitate access

and integration.

The Youth Knowledge Development Reports, of which this

is one, are divided into twelve broad categories:

1. Knowled-e Develo ent Framework: The products in

this category are concerned with the Structure of knowledge

development activities, the assessment methodologies which

are employed, validation of measurement instruments, Lhe

translation of knowledge into policy, and the strategy for

disseminating findings.

2. Research on Youth Smployment_and Employability

Development: The products in this category represent analysis

of-existing data, presentation of findings from new data

sources, special studies of dimensions on youth labor market

problems and policy analyses.

3. Program Evaluations: The products in this category

include impact, process and benefit-cost evaluations of youth

'Diagrams including the Summer Youth Employment Program, Job

Corps, tne Young Adult Conservation Corps, Youth Employment

and Training Programs, Youth Community Conservation and

improvement Projects, and the Targeted Jobs Tax Credit.

4. Service and Parti7ipant Mix: The evaluations and

demonstrations summarized in this category concern the matching of different types of youth with different service combinations. This involves experiments with work vs. work plus

remediation vs. straight remediation as treatment options.

It also includes attempts to mix disadvantaged and more affluent

participants, as well as youth with older workers.

ii

6
5. Education and Training A-proaches: The products

in this category present the findings of structured experiments to test the impact and effectiveness of various educa

and vocational training approaches including specific educa

methodologies for the disadvantaged, alternative education

approaches and advanced career training.

ion

ion

6. pre- Employment and. Transition Services: The products

in this category present the finding6 of structured experiments to test the impact and effectiveness of school-to-work

transition activities, vocational exploration, job-search

assistance and other efforts to better prepare youth for

labor market success.

7. Youth_Work Experience: The products in this category

address the organization of work activities, their output,

productive roles for youth and the impacts of various employment approaches.

8. Implementation Issues: This category includes

cros-cutting analyses of the practical lessons concerning

"how-to-do-it." Issues such as learning curves, reOlication

processes and prograwiiiatic "batting averages" will be addressed

under this category, as well as the comparative advantages of

alternative delivery agents.

9. Design and Organizational Alternatives: The products

in this category represent assessment13Y-aitrations of

alternative program and delivery arrangements such as consolidation, year-round preparation for summer programming, the use

of incentives and multi-year tracking of individuals.

10. Special Needs Groups: The products in this category

present findings on the special problems of and adaptations

needed for significant segments including minorities, young

mothers, troubled youth, Indochinese refugees and the handicapped.

11. Innovative Approaches: The products in this category

present the findings of those activities designed to explore

new approaches. The subjects covered include the Youth incentive Entitlement Pilot Projects, private sector initiatives,

the national youth service experiment, and energy initiatives

in weatherization, low-head hydroelectric dam restoration,

windpower and the like.

12. Institutional Linkages: The products in this category

will includi studies of institutional arrangements and linkages

as well as assessments of demonstration activities to encourage

such linkages with education, volunteer groups, drug abuse and

other youth serving agencies.

iii
In each of these knowledge development categories, there

will be a range of discrete demonstration, research and evaluation activities, focused on different policy, program and

analytical issues. For instance, all experimental demonstration projects have both process and impact evaluations, frequently undertaken by different evaluation agents. Findings

will be published as they become available so that there will

usually be a series of reports as evidence accumulates. To

organize these products, each publication is classified in

one of the twelve broad knowledge development categories,

described in terms of the more specific issue, activity or

cluster of activities to which it is addressed, with an

identifier of the product and what it represents relative to

other products in the demonstration. Hence, the multiple

products under a knowledge development activity are closely

interrelated and the activities in each broad cluster have

significant interconnections.

The analysis in this volume incorporates most of the

findings in the "program evaluations" and "research on youth

employment and employability development" categories which

were the first to yield substantial products and, thus, could

be incorporated. This analysis should be read in conjunction

with A Review of Youth Employment Problems, Programs and

Policies which included a series of background papers of the

Vice President's Task Force on Youth Employment. The Consolidated Youth_Emlo .ent Pro-ram (CYEP) Plannin and Em-loment Implementation in te "_etijii and organization alternatives"

category reports an experience under a demonstration project

which Emplements many of the concepts recommended by this

analysis.

Robert Taggart

Administrator

Office of Youth Programs

iv
CONTENT

Policy Perspectives on the Youth Employment Problem

Pathways of Career Development

Detours, Delays and Dead ,Ends

A Sequential and Probabilistic Interpretation

The Universe of Need

Priority Among Needs

Lessons From Program Experience

Pa

1

1

5

8

14

20

34

The Program Elements- -What We Have Learned 34

Underlying Approaches 44

Delivery, Design and Organizational Lessons 54

Managing Youth Employment and Training Programs 68

Restructuring and Reorienting the Youth Employment and 79

Training System

New Directions

Budget and Policy Options

Recommendations

79

83

96

Appendix 1. A Graphic Analysis of Youth Employment

Problems 99

Appendix 2. Employment and Training Portions of the

Youth Act of 1980 132

Appendix 3. Management Information Systems for the

Local Program 177

Appendix 4. Program Elements of YCOA 198

Appendix 5. Interest Group Perspectives 221

Appendix 6. Analysis of Youth Program Resource

Allocations 232
POLICY PERSPECT/VES ON THE

YOUTH EMPLOYMENT PROBLEM

Pathways of Career Development

The youth employment problem is multi - dimensional.

There is not one problem but an interrelated set of

problems paraling the development and transition

process which occurs for almost everyone from age

14 to 21. Youth employment problems cannot be

addressed without understanding of the general patterns

of development and transition which are positive and

constructive for most youth.

The teen years are a period of dramatic change.

At age 14 and 15 almost every young person is in school,

neither seeking nor holding a job; even in the summer,

less than a third look for work.(Atioendix 1) Jobholding begins to increase at 16 and 17 among both students and

the minority who drop out of school at this age. On

the average, half of 16- and 17-year-olds are working

or looking for work during the school yea., with the

proportion increasing to three-fifths during the summer

months. At age 18 and 19, most students leave high

school, either going on to college or full-time

employment. Seven of every ten males and a lesser

proportion of females at this age hold or look for

jobs, and one of every three has completed formal

education. Finally, by the early twenties, most young

people are employed and self-supporting. Less than

three of ten are outside the labor force, with half

of these still in school and most of the rest keeping

house.

During the critical years of transition, young

people become more committed to work. They seek more

permanent and rewarding jobs as they look to the future.

Only a seventh of all 16- and 17-year-old workers hold

full-time jobs compared to three-fifths of employed 18-

and 19-year-olds and four-fifths of workers age 20 to

24. Conversely, nearly half of all 16- and 17-year-old

workers hold part-time jobs for less than half of the

year compared with.just a fourth of 18- and 19-yearolds with work experience and one in ten 20- to 24-

year-olds.
The shift from part-time intermittent work to

full-time year-round employment is achieved through

frequent job changing and penetration into new

occupations. There is a significant change in

occupational and industrial employment patterns over

the teen years. Chart 2. Sixteen and 17-year-olds

are concentrated in sales, service and laborer

occupations, while 20- to 24-year-olds are more likely

to be clerical, professional or technical workers.

There is a shift from wholesale, retail and private

household work to manufacturing and services. These

changes are observable for both sexes though they are

much more extreme for males.

The increased stability of employment and changed

occupational patterns results in higher earnings. In

May 1978, the mean wage of 14-and 15-year-old workers

was $1.87 compared to $2.54 for 16- and 17 -year- olds,

$3.22 for 18- and 19-year olds, and $3.81 for youth

age 20 and 21. (Chart 31

This progression from school to work reflects major

changes in the average competencies and attitudes of

young people. In the early teens, the labor market

is only vaguely understood. Knowledge is based on

adult role models and perhaps sporadic odd-job work

such as lawn-mowing and babysitting. Career goals

are generalized and frequently unrealistic. Little is

known about the demands of the workplace. Basic information is acquired by most youth between ages 14 and 16,

as independence and income needs increase. Through

trial and error in the labor market, increased networks

of friends who work, and through exoosure in the

educational' process, most youth develop a knowledge

of how to look for and hold a job, and some sense of

what they want to be doing in the near-term as well

as the long-term, in other words, a set of basic

employability skills.

Moving through a succession of short-duration jobs,

most teenagers stabilize their work patterns over time

to the point where they have developed and can demonstrate

the maturity to stay on a job long enough for formal or

informal on-the-job training to occur. Most youth

graduate from high school with the basic skills in

reading and writing necessary to learn within a job

setting. Skill training is usually generalized or

multi-occupational in secondary schools, but as youth

leave high school many enter jobs where they can be

trained and stay long enough to learn a skill or else

11
they seek career training in post-secondary institutions,

private agencies, public programs or perhaps the

military, with the aim of acquiring the preparaticr

and credentials for entry into the occupation of their

choice. In other words, by the early twenties, most youth

have narrowed their occupational choices, have matured and

are ready to begin career employment, and have acquired

a vocational competency either formally or informally.

Paralleling this process of competency acquisition

and stabilization is a progression in the way youth

are viewed and treated by employers. On the average,

employers consider younger teenagers to be unstable

and untested. The employment of these youth is "risky"

-- their productivity is uncertain, their likely tenure

is suspect and their manageability on the job is unknown.

A clean resume -- a reasonable school record, some work

experience, perhaps some personal contacts -- reduces

the risk of hiring and the acceptability of teenage

job applicants. But the employers who hire teenagers,

especially younger ones,.usually do so with the

expectation that the relationship will be short-term.

There are some work clusters where short-term work is

integrated with more stable work at higher wages so

that the employer will try out large numbers and then

hold onto the more stable ones. Typically, however,

employers wait to hire for career entry, i.e. for jobs

with training and wage progressions, until youth are

in their late teens and are less volatile. When there

is an abundant supply of youth relative to demand,as

in recent years, employers minimize risk by increasing

the age of career entry and increasing the reliance on

resumes and credentials demonstrating desired attributes.

The youth development and labor market demand

patterns thus intersect. Each subsequentjob tends to

be somewhat more substantive, more responsible and providing greater exposure to options. Gradually, the young

person builds up a resume of experience, credentials

and contacts which convinces employers that the individual

will produce, will remain on the job, and will be

manageable. The employers are more willing to hire and

to invest in training on the job. The young adult then

moves from the external labor market into the internal

labor market or into a career pathway where the cause

and effect relationship between experiences or actions

and outcomes is more direct.
The predominance of these sequential development

and transition patterns among youth, paralleled by

employers attitudes and actions, does not imply an

orderly, stair-step or cause and effect progression

in the acquisition of competencies or in the

acceptance by the labor market. Most of what is

learned about the labor market in the teens is

basic information necessary to hold any job rather

than the basis for significantly narrowing career

choices. In other words, youth rarely set lasting

career goals in their youth which form the basis

for a planned sequence of activities. By the same

token, the part-time and summer jobs held by teenagers

rarely link to the occupations, industries or firms

which will provide employment in the twenties. Teen

jobs are usually menial and quite temporary. Only as

the settling-down process occurs, and as youth mature,

do the labor market choices begin to narrow and

decisions or experiences become closely related to

subsequent outcomes. But here, still, there is great

deal of uncertainty and many possible career

redirections ahead.

There are also discontinuity points in the progression.

Early school leaving, drug or alcohol addiction, arrest

and incarceration and early childbirth, particularly

out of wedlock, can interrupt the progression temporarily

and can also leave negative records which in the future

Impair progress. There are some positive disccntinuities.

The high school diploma makes a difference because it

is accepted as a credential. Youth with like ability

are better off in the labor market if they have the

sheepskin. Leaving the nuclear family is also a

maturation point for most youth who do not go on to

higher education. Marriage is another experience which

tends to alter labor force behavior abruptly, leading

to greater stability. There is also a discontinuity

point in moving from the "secondary" to the "primary"

labor market, or from part-time, intermittent work with

acknowledged short-term commitments on both the employer

and worker sides, to jobs and work patterns with

stability, wage progression possibilities and training.

The transition point varies for each youth; there is

not always a distinct demarcation; but most youth

recognize a point of career entry where they look to a

job for the future rather than as a stop-gap.
Detours, Delays and Dead--Ends

Most youth follow the same sequence of experiences

and competency development, and only a minority are

permanently checked by the discontinuities. However

there is wide variation in the.pace of movement from

one stage to the next, as well as in the successful

adjustment within each stage. Individual ability and

motivation vary greatly and explain much of the

difference. However, the odds are stacked against

certain groups whatever their innate ability and

motivation. Youth from disadvantaged backgrounds,

minorities who have suffered from limited opportunities

in the early childhood developmental period, young

women who have been socialized into stereotypes which

deter them from competing evenly in the labor market,

and those youngsters who have mental or physical

impairments, start off with a handicap. There is also

shortfall in the quality and quantity of opportunities

needed at each stage as the basis for competency development. The shortfall affects most seriously the young

people who need help most. Rather than receiving compensatory opportunities, those who start off with a

handicap frequently face constrained opportunities,

have their problems compounded by greater exposure

to negative events, and benefit from less peer, parental

and institutional support in mitigating the consequences

of such events. They are also less likely to benefit

from the more positive developmental events.

The cumulative result over the development and

transition period is a massive disparity in the

preparation for and access to adult careers. There

is no single factor which explains the differences,

but rather a combination of initial deficits, stunted

opportunities, limited support and higher risk of

adversity.

For instance, most youth enter the teen years with

a developing awareness of the world of work. Their

families are work oriented, likely having a male

breadwinner as well as a secondary earner. Friends
6

and relatives talk about their jobs and careers.

Reading materials, adult interactions and the like

are a source of career education. Values are

inculcated which will make the youth acceptable in

the labor market. In sharp contrast, the youth from

a poor family is likely to enter the teens with a

limited understanding of career options. He or she

has had no experience looking for work because oddjobs have not been readily available. The network

of peers and relatives provides little help in job

access and information. There has been limited

socialization to the demands of the workplace. The

result is that the disadvantaged youth starts off at

the labor market threshhold with a deficit which

results in a higher rates of failure, delay in successful

entry and sometimes lasting alienation and fear.

The labor market exacerbates such difficulties.

On the average, youth from poor families or minority

youth have been less socialized to the labor market

at any age, so that employers seeking nothing more

than maturity and dependability for entry jobs will

discount each applicant in these groups by the average

deficit of the groups. If there is no individual to

provide testimonial, and no resume that the individual

can use to prove his or her individual competence,

youth with potential are constrained from demonstrating

and developing this competence.

For most young people age 16 to 18, work means

menial, low wage part-time employment during the school

year and full-time during the summer. The majority of

youth can find jobs if they look hard enough and although

they may experience unemployment, it is frictional in

nature. Upon graduation from high school, many youth

simply bide time in "bridge jobs" until they mature

and make career decisions. For those with a diploma,

such jobs are relatively easy to find.

Disadvantaged and minority teenagers concentrated

in central cities and isolated rural areas, face far

less encouraging job prospects. There is a large

deficit of part-time and summer jobs, with the result

that the employment population rate for nonwhite in-school

youth age 16 to 21 is two fifths that of whites. (Chart 4-9)

For graduates in the large cities there is also a

shortage of bridge jobs as well as greater competition

from adult female heads of household and undocumented

workers. The job competition is made more difficult by

15
- 7 -

the fact that minority and disadvantaged graduates are

more likely-to have deficits in their preparation

because of inadequate schooling. For out-of-school

graduates, the employment/population ratio among 16-24

year-old nonwhites is three-fifths that of white graduates. Dropouts are worst off with an employment/population ratio of less than half that of white graduates.

In all these cases, the average race, sex and income-related differentials in acquired experience lead

employers to give preference to other youth at the hiring door. The lack of work experience, and of resumes,

credentials and contacts, again hamper disadvantaged

youth. They are unable to provide the capacities and

characteristics which are assumed for others who are

more advantaged. Without work on the resume, the next

job application is equally problematic.

Despite these obstacles, the employment rates for

most of the minority and disadvantaged in-school youth

and graduates increase with age and begin to equal

those of more advantaged youths by the early twenties.

Most youth successfully transition to the first rungs

of career ladders. However, many are left behind. As

the employment and unemployment difficulties are reduced,

disparity emerges between the occupations and industries

of employment by race, sex and family background. A larger

proportion of minority and disadvantaged young adults remain

in "secondary labor market" jobs characterized by high

turnover, low wages and limited training opportunities.

Although there is a convergence in employment rates,

it is somewhat deceiving in that for some the jobs

will lead upward while for others they will lead nowhere.

Some young adults who are career ready simply have

trouble making a career connection. Others are unable

to transition because previous experiences have not

prepared them or they lack resumes. They may have to spend

a few more years in bridge jobs, although they are not

necessarily trapped. Career opportunities are artifically

constrained for disadvantaged and minority young adults even

if they have reasonable preparation. Discrimination is a

major and perhaps the single most important factor. There

is no doubt that flagrant racial discrimination still exists--

that blacks and whites with equal credentials in every way

will not have the same chance of being hired. Because of

better networks, white youth will more likely hear about

good career jobs; the absence of active recruiting by

employers has a discriminatory outcome. Another dimension

is the tendency of employers to ascribe to all youth in a

cohort, for insta/ :e black males, the average characteristics of the cohort such as the average educational

achievement differential. Young adults who could make

it are simply not given the chance at adult career ladders.

This is especially true when there is an excess supply at

the career entry point so that employers have no incentive

to take any risks in trying out those who might or might

not make it.
-8 -

A smaller group clearly lacks the competencies

required for career entry. If they do not receive

help, their future chances will be limited. Those

left behind may turn to the military or CETA programs,

but these do not provide enough opportunities.

A Se# ential and Probabilistic lnte =retation

These generalizations about career development

pathways and problems obscure the dynamism and diversity of the transition experience for youth. There are

many minority youth from low-income families who enter

the teens with adequate labor market awareness, who

find a prOgression of lobs during the school sear and summer

while in high school, who graduate and find their way down stable and attractive career pathways. There are

others who experience failure at every turn, sometimes

through no fault of their own. Some youth may make it

in the adult labor market without any of the

conventional preparatory experiences. Others may do well all along the process but then fail to make the

career connection. There is almost unlimited variation

within the broad parameters of the development and

transition process, and this can only be captured from

a perspective which views youth experiences sequentially

and probabilistically:

o There are not clear paths of success and paths

of failure, or building blocks which guarantee progress or obstacles which are insurmountable. Rather, there

is a cumulative series of experiences which have a

statistical pattern of interrelationship in the shortterm as well as the long-term. More extensive and

attractive opportunities will, on the average, lead

to more positive outcomes, but the connection is not

deterministic. Adjusting for individual differences,

longitudinal evidence suggests that there is a

correlation between labor market awareness in the teen

years and subsequent employment and earnings. Employment

in summer jobs is related to school-year work and viceversa. Work experience during the teen years is related to earnings during the early twenties. School

completion or noncompletion is related to unemployment

and the occupational distribution in the twenties which,

in turn, is related to long-run earnings. There are

correlations between teenage unemployment and juvenile

delinquency, as well as between criminal activity and

subsequent unemployment problems. Likewise, there is

a two-way relationship between employment problems and

drug use, illegitimacy, and other social pathologies.

1 7
- 9

While these statistically significant relationships are

predictive they are not prescriptive in the sense that

causes and effects are not clear enough to reliably orient

personal or programmatic decisions. The measurable impact

of any short experiences--and most development and transition

experiences of youth are, by nature, of short duration--are

rarely determinative of future outcomes.

o Opportunity deficits reduce the success changes of

all youth who depend on these opportunities, even though

there will be enormous variance in success rates. Conversely,

increased opportunity has its impacts not just on the individuals who benefit directly, but indirectly on all of those

affected by the deficit. For instance, if jobs are created,

the youth who fill them benefit while in the job, but they

had some probability of being employed otherwise. The work

they would have found instead goes to others. Although the

individuals who secure the new jobs may stay only a short time,

the chances of all similar youth finding work are improved.

The direct benefits on the youth who hold the jobs for a

short time are supplemented by these indirect effects. Youth

opportunities are rarely direct routes for specific individuals,

but rather additional options which improve changes of a

larger number.

o Opportunities for minorities and females are constrained

at each step in the development and transition process by the

tendency of "gatekeepers" to ascribe to each youth the average

difficulties of the cohort. Opportunities are also limited

by the tendency of the "gatekeepers" to follow the path of

least resistency relying on networks for recruitment and

testimonial. Finally, opportunities are constrained by

blatant discrimination. All three patterns are discriminating.

The first two forms of discrimination are relatively more

important for teenagers because disadvantaged youth lack a

resume to prove their abilities and have limited networks

to help them find jobs. At the career entrance point,

these factors are still important, but discrimination becomes

more demonstrable in the sense that it is possible to document

that individuals with like experiences and characteristics

are not hired equally.

o Negative or positive probabilities of success or

failure are multiplicative rather than additive. Attempts

to explain racial differentials in terms of race plus other

variables correlated with status always leave a large unexplained variance. This residual is usually ascribed to discrimination. Another way to say it is that the whole is more

than the sum of the parts. For the advantaged youth, each

dimension is supportive of the other, so that a setback on

one front may be compensated for on another. For the disadvantaged youth, the dimensions more likely are negative,

intensifying the problems which are encountered.

IR
10 -

o Negative probabilities are also multiplicative

for individuals over time. If negative experiences

recur over a period of years, they tend to become

reinforcing. The individual with three or more periods

of unemployment or an extended period of unemployment

has far more serious problems than one with a short

exposure. Progress for some youth is simply "compound

interest" from the advantages provided prior to entry

into the labor market. The converse holds for disadvantaged youth. For instance, recidivism rates increase

with the number of previous arrests. Incarceration

usually occurs and this puts the youth in a milieu which

may be condusive to further crime.

o The cause and effect relationships between present

labor market experiences and future labor market outcomes

become stronger as an individual ages. Young people are

much more likely to remain in the occupations and

industries where they work at age 21 than at age 16.

They are more likely to be in career tracks where

success is cumulative. On the other hand, derailment

from such a track is far more serious than losing a

job at age 15 or 16. It means essentially that the

young adult must begin again. Likewise, almost all

teenagers work in low paying, high turnover menial

jobs with no training, but this does not constrain

their prospects. A twenty-year-old in the same status

has more severe consequences. The same holds for

negative experiences.

o As the cause and effect relationships between

experiences and future outcomes become stronger with

the passage of time, labor market status variables

become more predictive. Put another way, unemployment

for a young teenager is less an indicator of future

problems than unemployment for a twenty-year-old.

A sorting occurs over time as the individuals who

will make it in the labor market are separated from

those who will not, so that point-in-time status

increasingly reflects this sorting. In other words,

not only are the identifiable problems more serious,

but real problems are more identifiable.

o As patterns become more rigid and channelled

with age, they become more difficult to reroute. It

is a conventional wisdom that the earlier an intervention in the life of a youth, the more impact it

can have, since the process of development and

transition is sequential. The young teenager has

little knowledge about the labor market so that a

helping hand may be very important in setting him or

her off in the right direction. By the late teens,

failure in the labor market may have already instilled

attitudes and behaviour which reinforce the negatives.

13
11 -

This sequential and probabilistic interpretation of the

development and transition process has implications for efforts

to equalize opportunities and to assist those who have fallen

behind at different stages. Most of these implications are

correlatives of, the points addressed above:

o There are innate tradeoffs between earlier and later

interventions. Earlier Labor market interventions have the

greatest probability of impact on youth who need this assistance, and they tend to be less costly because the problems

which they address are less entrenched than they will be by

the late teens. On the other hand, it is difficult to identify

those who really need help among the younger group, and

resources therefore tend to be utilized for- any who would

make it on their own. Later interventions can be more targeted

and can have a more direct impact on future outcomes.

o When addressing one-dimensional problems, the

interventions can be fairly direct. However, when

there is a Gordian knot of overlapping negative probabilities, there is no clean way to cut through or to

carefully unravel each thread. It is necessary to

address all dimensions or else improvement on one

front will be under cut by problems on other fronts.

This applies sequentially as well as statically. If

early opportunities are improved for youth with severe

problems, but then they are left to fend for themselves

it is likely that early progress will retrograde.

o Discrimination is a pervasive factor in explaining the difficulties which emerge by race and sex. For

teenagers and for youth jobs, discrimination is difficult

to address directly because the hiring procedures tend to

be informal, the jobs short-term, and the discrimination

indirect. At this stage, efforts to provide usable labor

market information and to offer job search assistance for

youth in order to substitute for inadequate networks, and

efforts to document accomplishments, are probably more

effective than efforts targeted on potential employees. At

the career entry point, after youth have had some period

to acquire credentials and demonstrate competence, job

access activities become more important. Minority youth

and females do not get into the same career tracks as

others with equal credentials and ability. It is possible

at this point to help leverage them into these career

tracks.

o Reductions in opportunity deficits are not the

only answer for the problems of youth with more serious

handicaps to employment. The cumulative impact of already

available opportunities can also be improved by better

sequencing of activities so that there is less slippage and

misdirection. The impact can be improved by interventions

which increase the positive cause and effect relationships

so that success in one experience will have the same impact
- 12

on the subsequent probability for the disadvantaged as for the

advantaged youth. Efforts to overcome discrimination fall

into this category and are critically important. Finally,

supportive mechanisms which offset negative experiences,

particularly the potential discontinuity events, can help

youth to better realize opportunities.

o The effects of short-term developmental or

preparatory experiences at an early age are more

difficult to assess than those more intensive and

narrowly directed experiences at a later age. For

instance, a counseling and occupational information

experience in schools is brief and low cost. It must

be broadly offered because it is difficult to determine

exactly who needs it and who does not. The short-term

impacts on any youth, and certainly the aggregate

cumulative impact, cannot be measured easily. Likewise,

the effect of a nine-week summer job is likely to be

modest; the impacts of a five or ten percent reduction

in the-summer job deficit will be spread among all those eligible and affected, making the aggregate impact

difficult to determine. A work experience for out-ofschool youth will more likely be full-time, hence

having a greater impact on the present and future.

The youth in such jobs will be different than those who

are still in school, and more clearly in need. Finally,

at the career'threshhold, interventions can be targeted

and their direct effects more clearly measured.

o If opportunities are expanded earlier in the

hierarchy, there will presumably be less of a deficit

later. Even if it is hard to measure, there is evidence

of causality. More or longer periods of work experience

will increase probabilities of future employment and will

marginally reduce the universe of need for remediation or

career entry assistance later. Likewise, improvements in

the quality of experience at each level will presumably

increase their impacts and further reduce deficits although

this effect is largely hypothetical. Viewed in this way,

there is not a single universe of need but a vector of

needs among youth of different ages and in different

circumstances, and the elements in the vector are

interrelated.

o Employment status variables are a poor mechanism

for identifying youth with serious immediate or potential

problems, particularly for teenagers, both because of the

volatility and marginality of labor force attachment, and

the fact that labor market sorting has not yet fully occurred.

Targeting could be most effectively achieved by the use of

employment :attern rather than status variables, and by

consideration o success or failure in developmental activities

other than employment.

21
The Setting

While this sequential and probabilistic interpretation

provides perhaps the best explanation of the developmental

process of individuals and the differentials which exist,

on average, between groups, it does not explain why youth

employment problems are so severe and the causal factors

which can be addressed to improve the situation. Employment

difficulties are related to poverty, discrimination, race,

limited education and the like, yet while the number of poor

has declined in the last decade, while progress has been

made in equalizing employment opportunity, and though average

educational attainment of the youth population has moved

upward, the measured absolute and relative rates of youth

unemployment have increased, as have the differentials between

minority and nonminority youth. The trends are disturbing

in their own right, but their failure to respond to other

positive developments makes them particularly disturbing

(Charts 10-18).

Perhaps the best explanation is offered by the dual

queue notion. Age and experience are important hiring

criteria, so that youth are concentrated at the end of the

labor queue. Among youth, there is a second queuing on

the base of race, social background, experience and educational attainment. Aggregate supply and demand determine

how far back in the labor queue employers will reach. In

reality, there is not a single employment line, but an

ordering by employment probabilities. Probabilities increase

for those at the end of the line as demand increases relative

to supply. In other words, youth are affected disproportionately

by aggregate changes, and disadvantaged youth most of all.

The demographic bulge, and the increased consumption demands

leading youth to more frequently combine school and learning,

have expanded the number of youth at the end of the queue.

Demands may also have changed because of technology, a

rigidified internal labor market and perhaps the minimum

wage, but this was offset by rapid expansion in part-time

employment in retail and service sectors so that aggregate

employment grew rapidly in the last deacde. It was simply

offset by the even more rapid growth of the youth population.

With more youth competing for jobs, employers could pick and

choose among these young applicants, leading to increased

disparities between minority and nonminority youth, the

disadvantaged and nondisadvantaged, i.e., teenagers and young

adults between the favored and unfavored subqueues in the

youth population. This would, then, explain the rise in both

youth employment and unemployment as well as increasing differentials among youth.
- 14 -

The demographic trends would appear favorable unless

offset by declines in demand, changes in technology or internal

labor market rigidity or slowed growth in the types of jobs

in the economy which employ youth. On the other hand, youth

who are more attractive to employers will decline in numbers

while those who are further back in the labor queue will

increase absolutely and relatively. The result may be to

widen differentials among youth, i.e., with advantaged youth

experiencing improving prospects but disadvantaged youth

becoming worse off absolutely and relatively. The widening of differentials during the employment growth from 1976 -

1978 would suggest that the disadvantaged youth compete in

a segmented labor market or at least with reduced probabilities,

and are likely to be worse off in the future.

The University of Need

It is possible to reasonably define youth employment

problems in different ways that produce variances of several

millions in the needs categories (Charts 24-27). Needs

definition is a critical exercise because the resulting

measures are the fundamental ingredient for funding level

and allocation decisions.

Based upon the preceding analysis of the youth transion and development process, needs are defined in four

categories: Basic employability skills needs relate to

the deficits in "coping skills," in world-of-work awareness

and in the ability to find and hold a job which result

from a dearth of developmental opportunities. Preparatory

work experience needs address the deficits in part-time

in-school, seasonal and "bridge" jobs which help prepare

youth for later career entry.
-15 -

Remediation needs are a count of young adults at the

normal career entry point who lack the basic vocational

and educational skills to begin an adult career.

Finally, career employment needs address the problems

of young adults who have minimally adequate preparation

but are unable to make the career connection.

The basic employability skills deficit is most difficult to define because of the lack of good indicactora

of coping skills and world-of-work awareness, as well

as data limitations. Needs are estimated from the

National Longitudinal Survey by counting youth with below

average knowledge of the world-of-work and lack of a

significant work experience. World-of-work knowledge

is measured by a set of questions given to the sample of

youth. Scores on these questions have been found to have

significant correlation with future earnings. Three

estimates of need are derived. The high estimate includes all youth with below average scores who have not

worked for 2 weeks or more. The intermediate estimate

includes only those with below average scores who are

from low-income families and who have not worked 13

weeks or more in the last year for 35 hours a week.

Since 13 weeks of employment corresponds to a full-time

summer job, perhaps with employment over the Christmas

vacation, this is probably a reasonable standard of

successful labor market entry. The lowest estimate

counts only those from low-income families with below

average scores who have never worked for 2 weeks or

more.

The employability skills gap is calculated

from the Current Population Survey by adjusting the employment/population ratios of lower income youth at each age

to those of advantaged youth. Separate calculations

are made for the school year and summer for students and,

year-round for out-of-school youth. The estimates are

made with three low-income levels: The BLS lower living

standard; 85 percent of this standard and 70 percent.

The need for intensive remediation is estimated

from the Current Population Survey by counting those

persons age 21 who are unemployed, out of school, lack

a high school diploma and are from families or households

with low income, plus those who are out of school and have

a high school diploma but have been unemployed 15 weeks

or more in the preceding year and are from families with

low income defined, again, by the three separate standards.

It is estimated that half of those in need of remediation

are ready for intense effort at age 18 and 19 and half

at age 20 and 21.

24
- 15

The deficit for career entry employment is calculated

from the Current Population Survey by counting persons

who at age 21 are out of school, who have a diploma,

who were in the labor force more than 40 weeks in the

previous year, who earned less than $6,000, and were

in families or households with low income. It is

assumed that one-third of these could be placed in

career entry employment at age 18-19 and the remainder

at ages 20 and 21.

The ultimate universe depends on the family and

household limits in each of these needs categories.

The most inclusive universe of need is generated when

the high estimate of the pre-employment preparation

deficit is counted along with the work experience

deficit for youth from families with incomes below

the BLS Lower Living Standard, and with the intense

remediation and career entry employment deficits

calculated for young persons from families with incomes

below 85 percent of the BLS Lower Living Standard.

This gradient in the income cutoffs is based on the

notion that more expensive interventions later in

the development and transition process need to be

and can be more targeted. Table 1.

A second set of options uses the intermediate

estimate of the pre-employment preparation

The work experience deficit includes only those below

85 percent of the lower living standard and the

intensive remediation and career entry employment

counts use 70 percent of the standard as the income

cutoff. Table 2,

Finally, the most targeted universe restricts the

pre-employment prepration to the low estimate and

work experience as well as intensive remediation

and career entry employment count to youth from families

or households with incomes less than 70 percent of

the BLS Lower Living Standard,

Clearly, the numbers are critically dependent on

the assumptions. The assumptions in the intermediate

needs estimates are probably the most acceptable.

While these provide a sense of the relative dimensions

of the problems, there are several points which must

be considered in their interpretation.

25
-17-

TABLE 1

UNIVERSE OF NEED

MINIMUM ESTIMATE

Preparatory

Work Ex erience

Basic Career Entry

Employability Out-of- Training & Career Entry

Skills In chool Summer School Remediation Iglatat_

14-15 396 78 44 4

16-17 227 358 450 6

18-19 109 201 417 91 32 16

20-21 42 155 317 162 32 32

2'.'
-18

TABLE 2

UNIVERSE OF NEED

INTERMEDIATE ESTIMATE

Preparatory

Work pcperience

Pre-Employment

Preparation in School Summer

14-15 1029 91 17

16-17 780 373 495

1849 473 212 472

20-21 267 153 375

20

Career Entry

Out-of- Training & Career Entry

School Remediation 191211191_

7 . .

10 -

127 32 16

215 32 32

04')
-19-

TABLE 3

UNIVERSE OF NEED

MAXIMUM ESTIMATE

Preparatory

11.21110LITI Career Entry

Pre-Employment Out-of- Training & Career Entry

1Le.PEat121.

In School Summer School Remediation INI2a111_

14-15 2,270 116 0 7

16-17 1,044 408 536 12

18-19 311 250 468 142 41 54

20-21 111 85 375 283 41 110

31
20 -

First, the deficits are calculated as gaps remaining

after present government programs are included.

Second, reduction in the ore-employment and work

experience deficits would reduce those for remediation

and career entry; in other words, total need is not

the sum of the separate totals.

Third, it is assumed that the group with remedial needs

would attain career entry if its deficits were _vie In other words, remedial assistance would presumably

include career entry employment assistance if this

were required.

Fourth, if these deficits were filled, it would

not mean the end of measured youth labor market

problems. Early pre-eemployment assistance would

equalize chances but there would be only modest direct

effects on teenage unemployment. Elimination of the preparatory work experience deficit would bring the unemployment rate of all youth to that currently for advantaged

youth, which is still far above the rate for adults.

The remediation and career entry efforts would catch

those who did not otherwise make it into the first

rungs of career ladders, but only those with the

most severe problems would be helped. For instance,

the non-income targeted universe for career entry

assistance and remediation is nearly eight times as

large as the targeted universe. However, if all the deficits

as defined were met, the youth career development and

transition process would certainly be smoother for

those burdened by the lack of opportunity. There

would be much closer to an equal chance for career

access.

priority Among Needs

The seriousness of elements in this vector of needs,

and the priorities for intervention, are not indicated

by number counts alone. It is also necessary to

consider the immediate and long-run consequences of

unfilled needs, as well as the resources involved in

meeting them. (Charts 19-231 In the final analysis,

prioritization must also depend on theoretical and

normative judgements.
21 -

1. Long -Term implications

The long-term impacts of experiences along the

path of development and transition are difficult to

measure and probably understated by most available

assessment techniques. There are so many factors

affecting youth during these critical years, and these

factors are so interrelated over time, that statistical

sorting techniques can provide only a sense of the

direction of causality and a crude approkimation of

the degree. Descriptors of youth are limited so that

it is difficult to control for the differences. Such

controls are a necessary precondition for sorting.

For instance, to measure the long-run impact of high

schodi part-time employment, the future employment

and earnings of a group of youth who work more must

be compared to those of a group who work less, all

else being equal. But all else is seldom equal.

Regression analysis may control for age, socioeconomic

status, race and other variables, but motivation

might be involved in the choice to work, or perhaps

disenchantment with schooling, and this would certainly

be reflected in future outcomes although not controlled

by the demographics. Statistical techniques also

have problems in dealing with cumulative and longitudinal phenomenon. The simple fact is that the

explanative power of any youth status or change on future

status or change is limited by the inadequacies of

measurement and statistical techniques.

There is, nevertheless, an increasing body of

evidence documenting the long-ter importance of

positive youth career development and transition

experiences:

To assess the impacts of work and nonwork on future

employability and income for teenage males, Meyer and

Wise studied the 1972 National Longitudinal Survey of

high school seniors. They concluded that an additional

10 hours of work per week during the senior year

produced an 11 percent increase in weeks worked

following graduation and a 3 percent increase in weekly

earnings. However, after controlling for individual

differences, there was no evidence of a lasting effect

5 years subsequently.
22 -

A study by Ellwood used the data from another

National Longitudinal Survey to determine impacts of work on the future employment and earnings of outof-school males. The study found that an extra 10

weeks of employment one year was related to between

two and three more weeks of employment the next.

Ten weeks out of work in the first year after school

reduced wages 5 percent 8 years subsequently.

The National Longitudinal Survey data were used

by Corcoran to assess impact of youth employment for

females. The study found that, controlling for all

variables, the odds a woman would work in a given year

were eight times higher if she had worked the previous

year than if she had not Ten years after completing

school, a woman who spent 2 years out of the labor

force immediately after school earned between 3 and 5

percent less per hour than women who worked continuously.

A study of differentials for blacks and whites by

Osterman found that whites who had no unemployment in

1968 had 26 percent less than average unemployment in

1966 and 22 percent less in 1970. For blacks, those

with zero unemployment in 1968 had 12 percent less in

1966 and 34 percent less in 1970. Becker and Hills

found that for the "average" unemployed youth, short

joblessness did not have negative consequences. For

black teenagers with 15 weeks or more unemployment,

however, the future impacts were significant.

Studies have also looked at the long-range impacts

of occupational information and training. Parnes and

Khen studied 18-26 year old employed men not enrolled

in school. Controlling for years of school completed

and mental ability, an increase in occupational knowledge

equivalent to a five point rise in occupational test

score (out of a possible 56) was related to an annual

earnings increment of about $140 for a steadily employed

white youth and $290 for a black. A study by Stevenson

corroborated these findings.

Meyer and Wise studied the effects of high school

vocational or industrial training on employment and

wage rates after graduation. They found that no measure

of high school vocational or industrial training was

significantly related to subsequent employment or

wage rates. However, on-the-job training subsequent

to school leaving was related to higher future wages.

Flanagan found that white young males increased

per hour wages by 7 percent for each year of vocational

training past high school. For black males, the gain

was almost double.

34
- 23

A study by Stevenson found that training, if applied on a job, had a high payoff, ranging from $1500 higher

annual earnings for white males to $2300 per year for

black females. The effects were lasting.

Grasso studied the relative merits of various high

school curricula on earnings. He found that while

youth in high school vocational training programs did

not receive higher starting rates of pay, white youth

benefitted from post-school training although blacks

did not.

Hernstadt, Horowitz and Sum found that regardless of

curricular, youth who worked during school experienced higher

employment and wages in the 21 months after graduation than

those who did not work.

The high school diploma and the educational attainment it represents also appear to pay off over the long run.

According to a study by King using the National Longitudinal

Survey data, there is little difference between the earning

experience of graduates and dropouts, after adjusting for

personal characteristics, one year after leaving school.

But after 9 years, graduates make $.15 to $.45 more per hour

than dropouts with the same characteristics. After 13 years

the advantages increase to $.30 to $.60. In addition, dropouts experience greater unemploymert. Mott and Shaw have

found that in the first 10 months after leaving school,

28 percent of white female dropouts and 50 percent of blacks

experience some unemployment compared to 19 and 29 percent

respectively for comparable white and black female graduates.

The high school diploma and the educational attainment it represents also appear to pay off over the long

run. According to a study by King using the National

Longitudinal Survey data, there is little difference

between the earning experience of graduates and dropouts,

after adjusting for personal characteristics, one year

after leaving school. After 9 years, graduates make $.15

to $.45 more per hour than dropouts with the same characteristics. After 13 years the advantages increases to

$.30 to $.60. In addition, dropouts experience greater

unemployment. Mott and Shaw have found that in the first

10 months after leaving school, 28% of white female dropouts and 50 percent of blacks experience some unemployment

compared to 19 and 29 percent respectively for comparable

white and black female graduates.

Again, these studies are far from definitive concerning the magnitudes of long-term impacts. Different

assumptions and analytical techniques will produce

different findings. However, as a generalization,

the evidence seems to be mounting that youth labor

market experiences are cumulative, that short-term

problems have long-term consequences, and that the

causality is probabilistic rather than deterministic

in the sense that work or training increases future

chances modestly but is certainly no guarantee of success.
- 24 -

2. Immediate Consequences

Even if there were no long-term implications of

youth employment problems, the immediate consequences

would argue for strong action. Reams of statistics and

volumes of analysis have described these problems, but

perhaps the most telling dimensions are the following:

o Youth unemployment accounts for a ma or share

a -e ate unem lo- = nt an_ d is a :oblem o inereasi,

so ute imensions. Any e fort to reduce overall

unemployment must address the problems of youth; and

greater emphasis is warranted to the extent these

problems have become more severe,

14-19 as

Proportion

Annual

Unemployed

14-21 as

Proportion

Annual

Unemployed

Number

Average

14-19

Unemployed

(thousands)

Number Average

14-21 Annual

Unemployed

(thousands)

1964 25% 34% 963 1305

1969 33% 43% 981 1256

1974 31% 42% 1637 2205

1978 29% 40% 1830 2494

roblems a- critical becau

e are n most cia

e are areas ere has been progress towards greater

equality. Youth employment is a glaring exception.

Secular trends have widened race and class disparities.

The job gap between white and nonwhite youth, and between

the rich and poor, has widened considerably.

Employment/Population Ratio Nonwhites

Employment/Population Ratio Whit-es

Males Females

16-19 20-24 16-19 20-24

1959 85% 98% 58%

1964. 84 99 68

1969 76 98 64

1974 59 87 50

1977 50 78 44

101%

97

97

81

74
MP-1 -ent/Po elation Ratio DisadvantaEmp_oyment Population Ratio AdVantaged Males 14-2

ed Males 14-21

.67 .86

.72 .78

.77 .66

o The hardship related to youth_joblsesness is

significant and increasing. There are those who argue

that youth are rarely breadwinners so their needs are

not serious- Yet considering families and households

as units, and the spending needs of youth as one component of family or household needs, then the earnings

deficits of youth are the same as income deficits

of the units. Part-time school year and full-time

summer employment of a poor youth can provide two- fifths

of a Poverty level income for a nonfarm family of

four. If the employment/population ratio of all 14-21

year olds in poverty were raised to the levels of

nondisadvantaged youth, the extra family and household

earnings would close the income deficit of all

poor families and households by one eighth.

Youth account for a substantial and increasing

share of labor market related hardship as measured by

the National Commission on Employment and Unemployment

Statistics. In 1967, there were 429 thousand youth

age 16-19 and 811 thousand age 20-24 who were in the

labor force 27 weeks or more predominately full-time

or involuntarily part-time, who had annual earnings

below the family poverty level due to intermittent

or no employment, and who resided in families or households with incomes below 150 percent of the poverty

threshold. By 1976, the numbers had risen to 581

thousand and 1,160 thousand respectively. The youth

share of persons whose employment and earnings problems

were related to family and household income problems i.e.,

those counted by the NCEUS hardship measure, rose from

20.6 percent in 1967 to 27.8 percent in 1976.

o Joblessness among youth has substantial social

costs and conse uences. The most immediate and frequently

ignored =tension is oregone productively. Even if

it is assumed that jobless youth on the average can

produce only 90 percent of the minimum wage because of

lack of preparation or experience, the net cost of

employment to society is only the 10 percent differential between useful output and job creation outlays.

Whether this margin is 0, 10 percent or more is subject

to debate. Work valuation assessments of public programs

have reached the rather surprising conclusion that

economically disadvantaged youth participants produce

37
- 26 -

output valued (by alternate supply price estimates)

at close to their wages and salaries. Whatever the

appropriate discount, the.personal consequences of

employment must be weighed against this margin rather

than the total pricetag of filling the job gap, j

and tie cost to sociaty of youth joblbssness must be

assessed in terms of the goods and services they could

produce.

Joblessness among youth is also associated with

many outcomes which carry heavy costs to society.

Particularly significant are the relations between

youth unemployment and homicide mortality, automobile

accidents, and criminal aggression. There are also

correlations with birth out of wedlock and narcotic

arrests. Even slight improvements of employment can

have major effects. For instance, the carefully

studied supported work demonstration documented a

one-sixth drop of arrests for youth during their

participation. The criminal justice costs for a

larcency or felony assault have been estimated at

around $2700, so that even this small decline in

crimes offset between 3 and 5 percent of wage and

salary costs to youth under supported work.

o The outh oblem most amenable

o zc

um o inrJ.ationary_pressures. For young teenage

at e portals of work; joblessness is largely

frictional. Clearly, the lack of labor market

and job knowledge are major factors for youth,

whereas, adult frictional unemployment is unquestionably closer to its theoretical minimum and

cannot be as readily eased by improved information.

Measured teenage unemployment can be reduced at a

low cost by targeted actions because of the limited

hours of work and wages of most jobless youth.

There is little inflationary pressure from such

actions because of the excess supply of youth and

the fact that they are competing for the lowest jobs

so that bottlenecks are not being created. Intensive

remedial education and training that leads to career

entry has social benefits which exceed costs for young

adults who can apply skills over a full career. Finally,

career access assistance makes sense because disadvantaged youth are stereotyped by employers; if the government bears the risk, employers can do the sorting they

would not otherwise undertake and the youth who are

hired at their potential rather than below it will

pay back society more than the cost of the risk

reduction in increased output. In other words, youth

employment and employability development efforts are

erobably.thc best investment of scarce resources

if the aim is to. reduce unemployment without exacerbating inflationary pressures.

33
27 -

Costs of Meeting_ Needs

The budget costs of reducing these opportunity

deficits depend on assumptions about hours of work or

training required to fill the gaps, the wage levels and

allowances paid, the intensity and mix of services and

the administrative expenses. Based on current experience

and a range of assumptions about the types of activities

which would be initiated, the unit costs are estimated for

interventions of different types at different points in

the development and transition process (Table 4).

The translation of the number counts of youth with

current needs and their unit costs of meeting these needs

into the aggregate pricetag to provide full career opportunities rests on assumptions concerning the impacts of

early interventions in reducing later needs. Estimation

of the aggregate pricetag is a highly speculative exercise,

cumulating impact assumptions on top of cost assumptions and

university of need assumptions. A best guess is that an

aggregate expenditure of $7 billion would be required to

redress the vector of youth employment problems as defined

by the intermediate needs assumptions, with $6.3 billion in

work-experience and pre-employment assistance to bring youth

up to the career threshold and $700 million for intensive

remediation or career entry employment to get them over the

threshold and into adult careers. The estimated costs by

opportunity category and age groups are presented in Table

5. These more detailed projections are even more speculative

than the aggregate estimates, but at least yield a sense

of relative magnitudes.
28

UNIT

TABLE 4.

P -1/ DPre rate_ Mork Experlanoe

CO R OPPORTUNITIES

Pre-kaploymont

hunlotanco In7Sohool Sumner Out-of-School

Career ?rat 9 Career Entry; on IINPloYment:.

4-15 8175 8E150 8730 $4350

6717 1000 1240 900 300 $5250

IS 2150 2500 1365 8000 5250 $ 9000

1 -21 2150 2700 1470 10000 5250 9000

0
111-6110911111 M* U1StM

14-1S Inc* - $55

Cluoisllos - $95

liarnr At.

Coussillog 2 1101

111110 ASO

StIpood -$250

Job Sista

isiletion - 1200

11119 lotoosivi Cow llog $25 Sark Skills - Job Scud

Asslotion

fullo-op . 1500

Stipsad - $750

I021 SAM Al bun

En ilk,

11-5001

Yoh - 31

Wkly. hrs.

5.poidiS ropsia

Usti - 12,90

Support Cost

Factor - 1.4

Wks - )1'

bkly. brO,

10 pildil Vila 13.10

Support .Cost Factor - 1.15

Sots . 31

his . 10 w414 6 OAS

Support Cost

FACtOf

llosbi -32

bro. - 20

Mugs . 13.50

Support Cost

Victor . 1,20

29

Tin 4.

ASSUir10415

ihsko - 9

billy bra. -

10 pliS/S unpaid

Vi; i 11.90' Support C444

Victor * 1.4

Viiks - I

Itly. hrs.

11 poid11 uapold

Vila . PAO

Support COit

WO( * 1.25

Weds 10

Wily , Os, 3$

Vase PM

Support Coot Victor 1,20

Wok* - IQ

Otly. hrs. 35

liags $1.10 Support Cost

Victor - 1,10

0irt4-901001.

Visks - 10

bri. 10 psldil unpaid

. 'Support Cost factor 2 1.5

Otaks - 50 bro. - 30 pold/5 timid

0116 13,10

Support Cast

Victor - 1.4

Vicki - 10 Way, bra. . 31,1

klass Support Cost

Victor 1.20

Oaks 50

Wkly. brio - 40

Oils . 11,10

Support COIL

,44101 1,10

WM WINO

106411100

Job Corps .4 N.

NoaroottoutIll Trot. -

ROO 1000 bro.

SO lomat luoldootloi

9) moot soaresidsotiol

lam As boss

tsar is Above

WM WS

fil 1 pm 111,500 0JI1motividitai0500

50 patent PSI

SO wog an

$404 As ikon

his Ls Urn
- 30 -

TAME S

ESTI1tATKl1 AGGREGATE cnsTs 1W panywilWil 1111.1. CAREER (IPPORTIMIT1$5

14114004101144 wrortrz

Prtparatory Work leriepor

Preeibrp 1ufward. 44401eterera 14e$1:11001 liimaror Snit -+#1- iru1

14=15 48 ay

16-17 170 432 411 451 511 a.-21 45 420

14-.21 11,1

1110 36 12 16=11 461 510 47$ 541 31-41 241 171 07

1A1 1346 1551

15 72

16=11 74) 401

115 565 576 120 457

1615 1126 1572 asumptloass

eweemployment asa 'flame provided to 411 14-15 year olds

will reduce by 25 peteent the outdo for mote 6110 41VO

ore-omployment Assistance mom 16 sued l7 year oldas meeting

the moods at this ego wIll, In turn, reduce by So percent

the requirements for ald to older youth.

Increased whence' of work Among 14 to 17 year olds will

reduce by S percent the need deficit et Age IS and Above

for youth work **parlance.

Career gritty Training And Peen11,41ion will be

mike to those in need. It is assummi that i of the

universe will feteive help at ago 18-19 and % pi ago

20 -21, no the prwmweiptiww Liu wow will be .lower to

mature than others,

17

CA11441 Entry Tteleini

sett IhwwwWatiais

1247

iffnasonumc sews minims

152

132

101

10 61

152 1)60 152 7020 104 P14411114410213 T21199

304 1160

1561

earner Naar), tmpinyment will he olfeied n thnuo

in need. It Is assumed that 1/3 of yoolh _L need will

100141/0 towIP at Ago 18-19 and 2/3 al age 20-11,

txpooded pre-employmont assietanto will help youth

find Jobe on their own and Okay bevels In Jobs, Meeting

the pre-employment deficit will iodeco She wink experience

410

calI.WE F =I t 1. 1WW.111 1/4

1049

126 16/4

761 7116

387 5011

24

261

307

459

945 1404

27$

1540 2433

2911 710

499

2444

311$ 7910 6. Improvement In teenage employment chances will

reduce the need ferr Career entry employment and

remediation by 5 percent.

7. Career gutty Training on hemediatIon opl,nrtux

and Career Entry 1141110y11411011 options sebtiacl I

out-of-school employment opPortenIty deficits

the 10-21 year old. who are assumed to be adequal

nature for career Investment. and entry,
-31 -

4. The Normative Framework. The preceding evidence suggests

some of the tradeoffs and considerations in prioritizing

among these needs and in allocating scarce resources among

alternative interventions: Early needs are more widespread,

have more limited and/or less measurable immediate and

future implications, and can be met at a lasser cost while

those encountered further along in the development and transition process have greater Immediate and future implications but can only be net at a higher cost.

There are two somewhat distinct frameworks which might be

used to prioritize needs: The first would have as its

primary goal the equalization of chances for successful

adult career entry. This perspective, which might be labelled

the "developmental outcome framework,* would weigh

needs at the early stages in the development and transition

process in light of their impact at the end of the process.

Problems of youth would be addressed with first consideration

to alleviating problems in adulthood. A second framework

would have as its primary goal a reduction in the measured

youth problems simply because they are real and serious in

their own right. This perspective, which might be labelled

the "direct impact framework," would consider any future

benefits as another argument for addressing present problems.

It is the view of the Department of Labor that the "developmental outcome framework" is more appropriate for weighing

labor market problems and prioritizing needs and interventions than the "direct impact framework." This judgement

is based on four major considerations:

First, the demographic changes projected for the 1980's should

improve teenage job prospects. The teenage cohort will decline

before the early twenties cohort, so that the impact will be

noticeable first in declining competition for entry and parttime youth jobs. It is also likely that the growth in female

part-time labor force participation will ease, further reducing competition for such jobs. The labor market will also

tighten for career entry positions, albeit at a slower pace,

but it is under such tight demand conditions that intensive

remedial and career access efforts will have their greatest

effectiveness. In other words, a focus on older youth and

later interventions with a career ladder focus makes more

sense in the expected economic scenario.

44
- 32 -

Second, pre-employment services and work experience are the

"path of least resistence" in manpower programming. These

activities are less risky and easier to arrange than intensive remediation and career entry employment. They are also

politically more popular at the local level because the re

sources touch more youth because of lower unit costs. There

is no doubt that institutional inertia has pushed in the

direction of work-experience and pre-employmcnt assistance.

In the current mix of local youth programs, these approaches

are probably overemphasized.

Third, the improvements which might be made in work experience

and pre-employment assistance efforts will not have an impact

on career entry until the cohort benefiting from the improved

or increased preparatory opportunities moves into career

entry. In other words, it will take five to seven years for

the full effects of better or more teen work experience and

basic skills development opportunities to be felt at the

career entry juncture. For the near term, activities

directed to this juncture will need relatively more emphasis

than the preparatory activities because a relatively larger

proportion of youth will be entering the career threshhold

uprepared or without the needed credentials and resumes.

Fourth, there is an implicit assumption that there will be

expanded pre-employment and career education activities in

the schools, along with more work-education combinations.

Although there will continue to be extensive overlap between

school-funded efforts and those of the employment and training

system, the first priority cf employment and training activities should be remediation unless other systems prove unwilling or-unable to provide adequate preparatory opportunities.

Thus, from the perspective of the Department, the primary

aim of youth programs should be to provide all youth an

equal chance to develop the competencies and track record

to compete evenly for career employment when they permanently =tar the primary labor market. The aim is career

preparation and career entry, with scarce resources allocated to those activities which are most likely to achieve

this end for youth who would otherwise have the greatest

problems. This does not imply a radical change in the mix

of activities or participants, nor does it downplay the

ortance of pre-employment assistance and teenage work

experience for their own right as well .as a means to theend of career preparation. Rather, ±be.framework leans at

the margin in the direction of more concentrated efforts for

older youth.,
33

Both the "direct act'' and the "developmental outcome'

frameworks share the recognition that reducing the job gap

for teenagers is an immediate and important goal, All the

evidence points to the fact that the opportunity shortfall

at all levels is an important issue that must be addkessed.

In other words, the most straightforward way to address the

youth employment issue is not to prioritize among needs,

but to meet them all. This is not a heroic goal. As

defined in this analysis, the vector of youth employMent

needs can-be met. The shortfalls in pre-employment oppor

tunities, youth jobs, and career entry employment and

intensive remediation could be filled for an estimated

$7 billion. This is certainly within the realm of possibility over the next decade, particularly if the reduced

size of the youth cohort helps to alleviate the deficits.

Indeed, given-the cumulative and probabilistic nature of

the problem, it would appear to make sense to move towards

a full opportunity approach. If all youth have equal chances

at some levels but not others, then there are likely to be

continuing disparities larger than the differences in

experience would warrant. A pervasive phenomenon in the

youth development and transition process is that the gatekeepers at each opportunity point tend to discount an undifferential cohort by the average characteristics of the

group, restricting opportunity for those who are capable

and motivated within the cohort. This magnifies differentials over time. If all opportunity deficits were filled,

And differentiation were handled more effectively than in

the current opportunity structure, there would be not excuse

or rationale for such discounting. There is reason to

hope that the and result of full equalization of opportunity

would be greater than the sum of the marginal impacts of

opportunity increments.

Whether this is the case, the documented immediate and long- term benefits of equalizing youth employment opportunities-- the social output from youth work, the reduced negative out- comes resulting from widespread joblessness, the benefits of a more equitable society and of an improved unemployment/

inflation tradeoff, and the cumulative impacts on career development justify dramatic action,
- 34

LESSONS FROM PROGRAM EXPERIENCE

Past experience with youth. employment and training programs,

and extensive analysis of the Youth Employment and Demonstration,Projects Act (mon) efforts over the last 2 years,

provide a number of lessons concerning the effectiveness of

alternative activities.and strategies in meeting youth

employment needs. These lessons provide the basis for

restructuring and reorienting the youth employment and

training system, as well as the background for budget and

policy choices.

The Program Elements - Have Learned

There are four major building blocks of youth employment and

training programs: pre-employment assistance, work experience in the public sector, private sector access activities,

and remedial training and education. A range of approaches

are subsumed by these categories. Most programs and projects

contain elements of all four. Yet in each category, there

are some generalizations which seem warranted by program

experience.

1. Public and Nonprofit Sector Work Experience. Part-time

school year and summer 56bs ior stlidints plus year-round

"aging vat" or "bridge" jobs for high school dropouts or

graduates not ready for career entry, constitute the primary

activity in CETA for persons 21 and under. These public

and nonprofit sector jobs are generally temporary and of

limited intensity. The school-year jobs usually last less

than the school term and are typically 10 hours weekly.

Summer jobs average 9 weeks and 26 hours per week. The

length of stay in out-of-school work experience is normally

less than 6 months, with 35 hours of work weekly.

There is no evidence of substantial short-term post-program

employment and earnings gains resulting from such limited

duration work experiences. Available measurement tools cannot

isolate the modest expected impacts of such activities.

Also, the immediate results may not be indicative. Nonparticipants tend to be looking for work and have some

probability of finding it by the time participants leave

the program and begin experiencing frictional joblessnes

Hence, comparisons of pre/post changes for participants

and nonparticipants may yield little evidence of impacts.

Basically, however, these short-term "aging vat" jobs do

not lead to employment tracks any more than other shortterm jobs held during the teen years. They simply contribute to a cumulative experience. But these long-term effects

are difficult, if not impossible, to measure, just as it

is difficult to determine the future employment and earnings

consequences of any teen work experience.

47
-35

In contrast, the direct effects of work experience are

measureable and significant. Well-run youth projects can

be highly productive, paying back social costs in useful

products. Recent work valuation estimates have documented

a surprisingly high output level ranging from $2.98- per hour

of work for the Summer Youth Employment Program (SYEP) to

$3.57 for Young Adult Conservation Corps (YACC). Jobs can

reduce the likelihood and consequence of negative events

such as crime. The supported work findings suggest a

noticeable in-program decline in arrests. The Entitlement

findings indicate that jobs can be used to lure youth back

to school and to forestall early leaving. It is estimated

that the effective dropout rate has been reduced by up to

10 percent in the Entitlement sites, and that one-third of

eligible dropouts have been lured back to school. Because

youth employment programs pay minimum wages for limited

hours of work, significant reductions in measured unemployment can be achieved per dollar of public expenditure.

Targeted jobs programs can be an effective income maintenance strategy because they emphasize work, have positive

long-term effects, and concentrate resources to large

families. The useful social output combined with these

in-program benefits can justify the costs of the public

work experience investment if the programs are well run.

Youth work experience programs are not always well run.

YEDPA put increased emphasis on supervision and disciplined

work experience, and there is evidence that there were

rovements in these as well as existing efforts. The

summer program was ignored for many years and loose standards prevailed for workaite activity. In the last two

summers, there has been enormous improvement providing

encouragement about the possibility of running large-scale

work experience programs with disciplined productive work

settings, but suggesting also that good management requires

a great deal of continuing Federal attention to what goes

on at work and training sites.

One thrust of Youth Employment and Training Programs (YET')

has been to enrich work experience with occupational information, counseling, efforts to overcome sex-stereotyping and

the like. There has been some progress as well in adding

such "enrichments" to SYEP. It is unproven whether these

enrichments add to the impact of the experience although

the conventional wisdom is that they do. Vocational exploration programs in which youth receive either classroom

exposure to private sector requirements, field trips and

other periodic experiences, or actual job shadowing and

rotation, were tested in the 1378 summer program. The
-36 -

evidence from the 1978 summer program documents only modest

impacts on labor market knowledge aspirations and awareness.

Since the enrichments typically account for only a minor

part of expenditures and activities, it is innately difficult to separate their fact from that of work experience

alone.

There has been little success in creating "meaningful" jobs

in the sense of new career opportunities for teenagers.

There are a broad array of work options available under

youth programs, but the preponderance remain entry clerical,

maintenance, social service aide and conservation positions.

The effort to link jobs to youth aptitudes and aspirations

are limited, and evaluators of YEDPA programs have questioned

the whole concept because of limitations in available work

options and the uncertainty of youth participants about what

they want to do until they have gained some work experience.

The evaluators have suggested that career planning should be

based on a cumulative approach with decisions and job assignments based on past experience rather than just test-based

employability plans for the future. Potential job progressions within programs have not been fully utilized because of the categorical nature of intake, assessment and

assignment. In some prime sponsors with a limited number

of low income youth who are known on an individual basis by

program operators, the progression may occur, for instance,

with increasingly responsible jobs from summer to summer.

New York City this last summer allowed for some youth to

be called back into more responsible positions in job settings of the previous summer. But this is the exception

rather than the rule.

More sophisticated work experience programs for youth characterized by linkages to education and apprenticeship, more

skilled supervision, and greater expenditures for materials

can be and have been structured and are attractive where

successful. Youth benefit more in the long-run from such

successful projects and they are more productive in terms

of output per man-hour. However, the project gailure rate

rises lath the complexitr. Participant hours per dollar, of program expenditure are reduced by supervisory and material

costs. Such projects rarely emerge in local settings because they require too long a gestation period and concentrate resources to a greater degree than is viable.

Whatever the relative benefits and costs of more elaborate

work projects, they have accounted for and are likely to

account for only a small proportion of all work experience

activities at the local level.

40
The quality of these work experience activities is difficult if not impossible to judge from pre/post status changes of participants. In-school and summer terminees tend to return to school. Other participants leave and continue

to move around in the labor market. The aggregate shortterm employment and earnings impacts of work experience

are difficult to measure because of the frictional unem- ployment associated with program leaving. If impact measure- ment cannot be done with large samples over entire programs, it certainly cannot be done for individual projects. The

only dimensions that can be measured are whether youth are working hard, are supervised, feel they are productive and

perform according to labor market standards of time attendance and behavior. These qualities of workaites can only be judged by onsire review. There has, been great consistency

between what youth, supervisors and outside reviewers believe is a quality work experience in such reviews. In the

summer program, worksite visits revealed enormous variance

within and between prime sponsors which were totally unobservable from program data. The summer program was only

improved when worksite monitoring was dramatically expanded.

While limited duration, basic work experiences predominate

in serving young people, CETA also provides some transitional

or career entry employment opportunities which provide access

to permanent jobs. A small portion of project-type work

experience positions have apprenticeship linkages. More

broadly, Public Service Employment provides career entry

opportunities for some of the youth who represent a fifth

of participants (although the majority of youth in Public

Service Employment positions are in project-type work which

is indistinguishible from preparatory work experience.) Perhaps the best indicator of the potential of such programs

comes from the Public Employment Program in 1972 which

placed a heavy emphasis on the transition into permanent

employment. The Post-program earnings gains for younger

participants were about 60 percent higher than for older

participants. However, there was also evidence of "creaming,"

and those most likely to transition were those who were most

employable. The New Careers program experience suggested

the difficulties of rearranging job structures permanently

and the need to institutionalize the transition process to

assure that the new career ladders had more than one or two

rungs. In other words, where career entry employment can

be arranged, young adults can benefit greatly. A significant

effort must be exerted to assure a transition from the subsidized job to a permanent job, to promote subsequent upward

mobility and to avoid "creaming." There needs to be careful

structuring of career entry experiences to assure multiple

steps and subsequent access to regular jobs as well as control over the assignment into these positions.
-38 -

2. IntensiVe -remediation efforts are premised on the belief that

individuals falling in or failed by the mainstream developmental institutions and processes can, through concentrated

training, education and other assistance, become more employable and will, as a result, have greater future success in

the labor market. The 15 years of Job Corps experience provide more information about this approach than any other

component of the manpower tool kit. The most important

lesson is that the future can be redirected by such interventions. Perhaps the most sophisticated and dependable

assessment to date of many manpower programs has revealed

that Job Corps enrollees experience statistically significant increases in labor force participation, full-time

employment and weekly earnings. Arrests are markedly reduced during and after participation. Residential mobility

for economic reasons is increased. Welfare and social

insurance dependence declines. The current value of these

benefits exceeds social costs under conservative methods of

estimation. In other words, intensive remediation for youth

is a profitable social investment.

Evidence suggests that skill- or occupation-specific vocational training in an institutional setting works best for

young adults who are Nature enough to stick with a course

over the time necessary for its completion and who have a

fairly stable notion of what they want to do so that they

will continue in a training-related occupation. Youth must

be old enough that employers will hire them when they complete the training course.

This is most easily documented in the Job Corps program. In

fiscal 1978, only a fourth of enrollees who entered at age

16 completed their course of training compared to two-fifths

of those who entered at age 19 and over. Among completers,

those who were 18 or under had a recorded placement rate of

70 percent, with half of these in a training-related job.

The placement rate of graduates 21 and over was 77 percent

of whom two-thirds found a training-related job. Put in

another way, the proportion of older youth who completed

training and were placed in a training-related occupation

was more than double that of the younger enrollees.

The experience is consistent across all institutional training--teenagers tended to have higher termination rates and

lower training-related placements than young adults. Even

in vocational education, the body of evidence does not sugge

that secondary vocational education increases subsequent

51
- 39 -

employment and earnings. Rather, it is post-secondary

vocational education which produces most of the gains.

There are doubtlessly many youth who are mature and

directed enough in the teens to complete and benefit

from specialized training, but this must be determined

on an individualized basis; on the average, their retention and placement rates are not high enough to justify

the investment at this point.

This reality is, in fact, recognized by decisionmakers in

the employment and training system. In CETA, Title II

(then Title I) local programs there were only 62,500 youth

19 and under in classroom training activities in 1978.

Most of this was basic skills and world-of work type

courses. In Job Corps, 16- and 17-year-olds are usually

placed in generalized training such as maintenance or cooking

which can be applied even if they drop out early; if they

stay longer, they are usually shifted into more specific

training occupations. Job Corps advanced training programs

operated by unions frequently have an age requirement.

The same pattern apparently holds true for intensive remedial

education. In Job Corps, for instance the proportion of

those who entered at age 16 or 17 lacking a high school

diploma who subsequently attain a GED is 10.9 percent compared to 12.9 percent among those 18 or 19 even though education is stressed as the major component for younger enrollees

and even though older youth tend to be more anxious to get

on with vocational training. The experience with the Career

Intern Program of alternative education suggests that those

youth who have left school and are ready to return voluntarily do better than those identified as having problems

in high school and referred directly into the program.

Finally, early findings from the mixed services demonstration project which randomly assigns out-of-school youth to

work, work mixed with remediation, and classroom training,

finds significantly greeter dropout rates in the latter case,

suggesting that young people may need some aging before they

are ready to return to the classroom.

Another lesson is the iartance of alternative settings for

such intensive remediation. The Job Corps provides a structured and positive environment away from home. The decision

to leave home is frequently a demonstration of maturity or

a sorting process. Under the Entitlement program, it has

proved difficult to attract dropouts back into regular

school; the dropout enrollment at local sites only increased

when separate educational components were introduced. The

common element in successful intensive remediation appears

to be self-paced learning and individualization. Remediation

is necessary in the first place because the youth could not

Mr)
- 40 -

move at the average of their peers, so that return to the same

environment is demeaning. Likewise, simply being slotted with all

those who have fallen behind is not helpful because the achievers

are dragged down by the less committed youth. In a separate setting,

where the entrance requires some motivation, and where there is

self-paced learning which does not emphasize comparative deficiencies,

a positive dynamic can be achieved.

3. Basic Employability Skills Development. There is a broad

assortment of activities which aim to provide youth with greater

knowledge of career options, how to search and apply for jobs, the

demands of the workplace, motivation and self-confidence to enter

the labor market, E helping hand to overcome personal barriers and

follow-up on the job to reduce the chances of failure. The

activities include basic life skills training, job search assistance, counseling, special efforts to overcome sex stereotyping,

vocational exploration and cluster skills training. The term

pre-employment" assistance is sometimes used to describe such

activities, but they may be integrated with work, may be needed

at several stages of development, and may include follow-up

after employment. Basically, however, the activities aim to

provide a minimum set of competencies or coping skills with which

youth can then make it on their own in the workplace. For youth

age 14 and 1S, this assistance is quite generalized and limited

in scale. Usually it is offered in the school and summer under

the rubic school-to-work transition services. For out-of-school

and older youth who evidence more severe problems, more intensive assistance is required.

There is almost no hard evidence about the impacts of employability skills development assistance, the most effective delivery approaches, or the different mechanisms for dealing with

different groups. The reason is that the services tend to be

of limited duration and cost, so that their impact is by nature

modest and,. therefore, difficult to measure. The activities

have the aim of changing knowledge and behavior which will not

necessarily be reflected in immediate changes in employment

and earnings. Psychometric measurement of in-program changes

is a tenuous exercise. Large-scale, control group experiments

now underway under YEDPA with school-to-work transition services,

job search assistance and pre-employment services for out -ofschool youth should provide some better indicators of impact,

but the evidence is a year away.

For now, however, policy decisions must reast on the judgements

of practitioners who deal with youth on a day-to-day basis.

Employability skills development has been given extensive

emphasis under local programs, and is also the major focus for

non-CETA programs dealing with special needs groups. Practitioners generally agree that assistance is necessary before

most disadvantaged youth can successfully enter jobs and
- 41 -

that a helping hand is needed when failure is encountered

in the labor market or a personal problem disrupts progress.

Practitioners stress the need for role models and peer support networks, as well as arrangements that provide continuity

of support for individuals so that their positive experiences

become more cumulative. There are also those who emphasize the

importance of intensive follow-up on the job, i.e., that

there should be post-employment as well as pre-employment_assistance since, for teenagers, entrance into a job is only the

beginning of a sequence rather than a career decision. Most

observers agree that there has been inadequate emphasis on

follow-up with employers and youth under CETA programs.

4. Private Sector Access. There is a fundamental perception

that-Youth participants in employment and training programs

should receive a set of discrete services and then be placed

in "real" private sector jobs. In fact, placement rates into

unsubsidized employment are quite low. In fiscal 1978, less

than a fifth of ermlnees of YETP and YCCIP entered private

employment, with the rest returning to school or other programs or nonpositively terminating. In 1978, only 3.6 percent of all YETP participants were in private sector on-thejob training. This is characteristic of all youth programs

which serve perArtly teenagers.

This has led to an active effort to find mechanisms of

privea sector involvement and access through new intermediaries and through financial incentives. On the assumption that red tape is an impediment to hiring and training

low income youth, and that reimbursement is needed for the

extra costs, the Targeted Jobs Tax Credit provides half the

first year wage for the hiring of certified low income

youth as well as students in cooperative education programs.

The Youth Incentive Entitlement Pilot Projects tYIEPP), program provides for 100 percent wage subsidy to the private

employer, with payrolling from the prime sponsor. Private

Industry Councils have been created to intermediate with

employers. In agdition, under the discretionary authority

of YETP, there have been tests of a wide range of techniques

for accessing private sector jobs. The lessons are not all

In, but there are some preliminary indicators which are consistent with past experience:

First and foremost, it is unrealistic to expect high direct

placement rates for programs which provide short duration

or seasonal and in-school work experience, where participants are selected because of their labbr market difficulties, and where funds are concentrated in areas where

there are significant private sector job deficits.
- 42 -

The impediments are not just red tape nor can they he overcome by "bribes" to employers. The Entitlement program provided the first test of the full wage subsidy. In the

17 project sites, a very substantial effort was made to

line up business commitments to provide part-time and

summer jobs. As of September 1979, only 15 percent'of the

jobs were in the private sector. This is four times the

percentage_ under YETP, but the private sector remains only

a modest component of the effort to fill the job deficit

for the in-school poor youth in the Entitlement case

accounting for only one in seven of the needed employment

opportunities. Anecdotal evidence suggests that even the

100 percent subsidy may not cover the costs of supervising

the Entitlement youth. There has been no evidence of increased hiring for the sake of subsidies. The proportion

of Entitlement youth in private sector jobs has stablized.

Likewise, there has not been a massive surge in the use of

the Targeted Jobs Tax Credit. Through July 1979, only 1400

economically disadvantaged youth age 16-18 had been hired

under this mechanism, and only 6300 19- to 24-year-olds.

Employers and the public complain about red tape in government programs, but it is not necessarily disfunctional. In

private sector subsidy programs, restrictions are necessary

to protect against abuse. Under the contract JOBS program

in the late 1960's, early subsidy contracts had few strings

attached but in many cases participants were similar to those

who would have been hired anyway and there was little on-thejob training. Procedures were then tightened by putting more

requirements in the contracts; The result was fewer employers

willing to participate, but also less "windfall" subsidization.

On the other hand, other restrictions might not be worth the

effort. Attempts to reduce subsidy levels in private sector

Entitlement jobs after participants stayed for a period of

time have not been successful. Either the youth are job

ready and will be picked up by the employer or they are not,

and a reduced subsidy formula creates red tape which discourages continued participation by the employer.

There has been a continuing search for model private sector

approaches, but considering all the funds available under

CETA and the fairly consistent pressure to place participants in the private sector, it is surprising how few

"models" have emerged. In certain circumstances, those

models are tautological in the sense that motivated

employers have taken an initiative which is then called

a model simply because it occurred. There are few easily

replicable packages.
- 43 -

Finally, it must be realized that private sector access is

inversely related to age. While rhetoric stresses placing

youth in the private sector, it is really older participants i

in longer-term activities where linkages can be established

for whom this is a feasible option. The figuresforon-thisjob training under YETP and Title II are suggestive.

1978

A e Proportion in OJT

YETP Title II-B (then Title I)

Under 16 2 0

16-19 3 11

20-21 10 22

22-44 21

For younger participants residing in job deficit areas,

immediate private sector placement is unrealistic. The aim

should rather be to provide teenagers a cumulative track

record to improve their competitive prospects in the future.

Employment and training programs do not do a very good job

because there is no way to tell whether a participant has

had positive or negative experiences. Private employers

have a negative perception of CETA youth, so much so that

motivated youth are better served by downplaying their program participation so that they will not be typecast as a

"disadvantaged" individual.

Because of misconceptions and inflated expectations about

the potentials of private involvement, some realistic possibilities have been neglected: First, the Entitlement approach

of payrolling private sector jobs part-time in school and

during the summer can increase opportunities for a disadvantaged clientele. Although the full wage subsidy is not

an "open sesame," it is a necessary tool if poor students

are to gain private sector work experience during their

teens.

Second, intermediary groups such as 70001 and Jobs for Youth

and certain community based organizations can provide a continuing and personal linkage to employers, as well as a

mechanism for sorting among disadvantaged youth. To maintain credibility with employers, these groups have to

realistically assign young people to jobs they can effectively fill. To do this, they must sort among the disadvantaged. In the 1960's, OIC established its reputation with
- 44

employers by screening in and further motivating the more

mature and upwardly mobile among the disadvantaged, thus

giving employers a more dependable product. There are

many comunity based programs filling this function today

at the local level.

Third, some institutional skills centers have established

a track record with employers to a large extent by determining the specific competencies they require, then meeting

these competencies. There is a comprehensive certification

system in Job Corps for specific vocational skills acquired.

This system has proven useful with employers, particularly

in occupations such as welding.

Fourth, while OJT is too cumbersome to the employer because

it requires payrolling and reimbursement, the tax credit is

too general in that it certifies the participant but does

not assure the job is a real training or career entry opportunity for this individual. It should be possible to certify

career entry positions and to have a try-out period which is

payrolled without red tape. This would allow participants

to prove themselves and overcome negative labeling.

Fifth, placement assistance should be generalized for younger

participants, with particular emphasis on teaching them how

to look for work. Placement components related to preparatory

work experience should also be generalized. Ties between

public sector jobs and the private sector should become

more distinct as the jobs become more nearly like permanent

adult employment; career entry employment requires very formalized linkages as noted previously. Advanced training

likewise should have specific linkages while less advanced

training should offer more generalized placement assistance.

The Job Corps again provides a model where advanced union

programs are now being followed directly by Industry Work

Experience and then unsubsidized employment so that the

extensive training investment is not wasted.

Underlying Approaches

Youth employment and training programs and policies rest on

a foundation of assumptions and understandings which are only

rarely questioned. Targeting, participation standards and

requirements, the structuring of services for individuals

over time, and the tradeoff between income maintenance,

employment and human resource development goals, are the

crosscutting issues. Recent youth program experience

suggests the need for reexamination and perhaps mcdification

of some of the underlying approaches to these issues:

5,
45

1. Sorting vs. Support. A predominant but unstated theme

of employment and training programs is to provide a supportive environment for disadvantaged youth so that they will

not reencounter the failure they have experienced in the

schools or the labor market. It is assumed that the longer

they can stay in structured activities, the more likely they

are to benefit. For instance, Job Corps has found a significant relationship between length of stay and post-program

employment and earnings, so that retention has been emphasized

and performance standards for centers are keyed to retention

rates. The Entitlement program and other local efforts aimed

at discouraging early leaving or promoting return assume that

the best thing for youth is to remain in school, again because

of the correlation between the diploma and subsequent earnings.

Youth programs are judged by turnover and positive termination

rates, so there is an incentive to keep participants as long

as possible. In the summer program, local operations have an

incentive to retain youth who are not performing both because

the summer will be over soon, there are few other contructive

options, and any vacant slots cannot be easily refilled.

It is not clearcut, however, that the youth who on the margin

are most likely to drop out of programs will necessarily

benefit from a longer stay. The average experience of com-

;deters vs. noncompleters may not be predictive of the

experience of a likely noncompleter who is coaxed to stay.

The Job Corps experience suggests that if youth are forestalled from dropping out for personal and nonrecurring

reasons, they can complete training and be successfully

placed. It is not at all clear, however, that providing

incentives to others who have continuing difficulty adjusting

or are not ready for the Job Corps experience really produces

a positive outcome for them, The 50 percent 9 _lay dropout

rate in Job Corps works as a sorting mechanism, and those

who stay are then a better bet for more expensive continuing

training. In a system like CETA where a youth may be coaxed

to stay in an activity for 90 days, this does lot mean that

he or she is then ready for intensive remediation because

the sorting process may not have been allowed to occur.

Sorting does not mean that youth who do not perform are

abandoned. In Job Corps, there are second chances to reenter after a period calculated to allow some maturation.

Youth who cannot move forward into advanced components are

given special remediation tailored to their needs. Likewise,

in well run and smaller summer programs, there are a progression of jobs from summer to summer. The youth who are

effective move up from year to year while the others continue

in the more menial positions until they can prove themselves.

The aim is to provide an individual incentive for performance

and optionsfor those who have more serious problems.

5
- 46

The retention emphasis for each component and program agent

has several negative consequences. It tends to undermine

standards in all activities. Youth who do not produce are

retained alongside those who do. The discipline which is

an important part of the work experience is lost. There isi

no chancefor the individual to respond to increasing responsibilities and to mature when there is no expectation

of performance.

Completion of a unit of service in CETA has very little

meaning, since all youth are held as long as possible.

The experience cannot, then, be used as a reference for a

more advanced experience in the next employment and training

activity or as proof of accomplishment to potential employers.

This last factor is perhaps most critical. The activities in

CETA are not referenced to any individual standards of achievement, so that it is impossible to tell what a youth has

learned or can do. Since for many youth these programs are

the only work experience until the late teens or early twenties because of the dearth of private job opportunities,

it is a serious drawback that the experience cannot be used

to document competencies and development.

Evidence suggests that structured and demanding activities

have the greatest success. Wbrksite assessments under

YEDPA and SYEP combining participant and supervisor interviews with outside reviewer assessments have consistently

found that all parties consider the best worksites to be

those with clear standards and enforcement of rules. In

Job Corps centers that operate most effectively, Corpsmembers

socialize new recruits into a standards of individual performance. Peer support tends to work.

There have been some efforts in recent programs to increase

performance standards. Under YETP, a "service agreement"

approach has been widely used in which services are prescribed for each youth on an individual basis with roles

and responsibilities explained. Workaite agreements setting

work standards and expectations have been required under

YETP, SYEP and the Youth Community Conservation and Improvement Projects (YCCIP). The Entitlement program conditions

the job guarantee'on school attendance and performance.

The notion of academic credit for work experience assumes

a completion of a set of learning activities on the job.

In the summer program, the theme in fiscal 1979 was to

demand "a day's work for a day's pay," and although there

were still cases of slack standards, the demands were

greater than ever before and much more like in private

sector jobs.

59
47 -

Sorting by activity completion is straightforward where

individual standards of performance are enforced in the

activities. Sorting by measured competence acquisition

is more complex and rests on identifications of a reasonable set of benchmarks of employability development. There

has been very little effort outside Job Corps to document

competencies attained as opposed to registering completion

of service units. In Job Corps, there is a complete and

detailed system for measuring demonstrated vocational skills.

There is also extensive use of the GED. A GED and positive

performance ratings are needed in Job Corps for entry into

advanced career training options. The aim has been to provide credentials, and to create an internal progression of

experiences and rewards based on performance.

Private sector employers frequently attest that they simply

want a youth who will show up on time and work hard. It

should be possible to certify that a youth has demonstrated

this maturity in an employment and training program. A

measure of pre-employment competence or basic life skills

would be of less use as a reference for employers than as

a benchmark for moving the youth into more advanced activities and perhaps for giving a tangible recognition of

accomplishment. Vocational competencies can be measured

in a variety of ways, and Job Corps has one system that

could be easily adapted. Educational certification standards are being developed in a number of States and the

GED or high school diploma is an option if agreement

is not possible on other benchmarks.

However, the underlying view that has to be changed is the

notion that it is wrong to sort disadvantaged youth by

identifying and referencing achievement. As programs

reach an expanding portion of the universe of need, it is

critically important that they provide opportunities which

are like those in private sector. The requirement for performance and the risk of failure are a necessary part of any

opportunity. As the opportunities are equalized for positive experiences, for instance, as disadvantaged minority

youth come to have the same chances of employment in school

and out during the teen years as nondisadvantaged nonminority

youth, then application of labor market standards of success

or failure, with rewards and punishments, becomes more

feasible because the option for the youth who fails is not

so bleak and the cause of this cannot be blamed as much on

previously limited opportunities. It is necessary to provide second and third chances and a helping hand, but there

is a need to tighten performance requirements and to utilize

programs as a proving ground as well as a developmental

opportunity.
48

2. Duration and Sequencing of Activities. The CETA reauthorization limited the peril of work experience in CETA to

1000 hours in a single year, 2000 hours in any 5 years,

and 30 months overall. There are exemptions for in-school

work experience and a number of other loopholes, but the

basic concept is to limit dependence so that "remedial"

activities do not become continuing alternatives.

This is based on the reasonable notion that persons should

receive employment and training services and then become

employable. However, it does not square with the labor

market needs of youth which may require several years of

"aging vat" work experience (cumulated perhaps over summers

or in short doses in-school) Bch may not immediately increase employability enough to guarantee placement, particularly where the participants reside in areas where there

are significant job deficits, and where the participants are

the vicims of discrimination. It is estimated, for instance,

that the Summer Youth Employment Program already provides

two-fifths of the employment for 14- to 19 -year -old nonwhites

in the summer months. To reduce the job gap would require

further expansion of summer components. In turn, youth in

need would be working primarily in the public sector because that is where the majority of jobs would be for the

eligible population. Participants would run up against

the hours limitation before they matured to the point where

career investments would be feasible.

Simply put, the limitation in service should begin once the

youth enters career training or a career ladder employment

opportunity, not during the developmental sequence. At

current funding levels, or at any realistically projected

funding levels, there will not be enough resources to provide continuing treatments from age 14 to 21 for all youth

in need. This is not intended nor is it necessary. However,

some youth with particularly severe problems may require

such continuity of treatment. Stricter standards in the

programs, and careful progressions will discourage "CETA

unkies,w Individualised prescription of services, rather

than arbitrary limits, should help to determine who needs

what.

If activities occur over a continium, it is important that

experiences be sequenced so far as possible so that they

cumulate maximally. Sequencing needs to be both "ex ante"

and "incremental." "Ex ante" sequencing means that a plan

is developed for an individual mapping out a structured

series of activities over a span of time. "Incremental"

sequencing means that at each point the youth reenters

the system, assuming periodic entry and exit, the activity

prescribed at that point is based on past experience. The

61
- 49 -

notion of implementing long-term employability development

plans is not realistic for younger teenagers, because they

have so many options which only sort out over a period of

years. However, "ex ante" sequencing becomes possible and

necessary as youth mature, their career goals and options

stablize, and they are ready to begin intensive remedial

investments or career entry. Here, training is best linked

directly to jobs with no discontinuities. It is important

to clear the obstacles so that the occupation-specific

investment pays off. Put another way, the sequencing should

be retrospective early in the development and transition

process and more prospective later.

3. Targeting Resources, There is general agreement with

the principle. that scarce public resources should be utilized

for persons most in need, but there is disagreement about

the degree of such targeting and the best mechanisms for

achieving it. Youth programs use a range of approaches

both in allocating resources among areas and in determining

eligibility within areas. The allocation formulae are

varied. YCCIP divides resources among areas according to

the unemployed population. YETP uses a weighted formula

of unemployment, excess unemployment and poverty. The

summer program uses poverty and unemployment, along with

a "hold-harmless" clause which has retained the concentration of resources in central cities that was characteristic

of the War on Poverty. Entitlement sites were decided by

competition. Discretionary resources under YETP and YCCIP

can be utilized anywhere and have been concentrated in urban

and rural poverty areas. YACC sites are required to be near

areas of substantial unemployment, but essentially they

mirror the distribution of Federal lands. Job Corps expansion was planned to balance slot distribution with the

regional shares of unemployed poor youth.

The effects of these different area allocation approaches

are substantial: Poverty factors in the allocation formulae

emphasize rural areas; unemployment shares spread resources

evenly, while excess unemployment factors concentrate in a

few cities; population density yields - very heavy concentration in the urban centers while the opulation factor

distributes evenly across the country. Discretionary dollars

are most effective in targeting to poverty areas. Finally,

tying sites to the distribution of Federal lands under YACC

completely mismatches with need(Appendix 6).
- 50 -

There are also varying income eligibility requirements.

Entitlement is most restrictive with poverty as the measure.

SYEP uses 70 percent of the BLS Lower Living Standard, while

Job Corps uses this standard supplemented by an out-of-school

requirement and several other conditions. YETP uses 85 percent of the BLS Lower Living Standard for work experience

components but has no income restriction on low cost services.

YCCIP is open to all unemployed youth with first consideration to the economically disadvantaged. YACC is not targeted

and is designed for a "good mix" of all youth.

The income criteria make a difference in the size of the

eligible population and its characteristics:

70% 85- 100!

$ 14-21 5,802 7,318 8,911

# 14-21 Dropouts 1,344 1,696 1,986

The different allocation formulae and income eligibility

criteria have yielded substantial differences in the population served by different categorical programs:

Percent

Dropouts

Percent

Economically

Disadvantaged

Percent

Nonwhite & Hispanic

YACC 43 44 18

YCCIP 60 84 61

YETP 23 82 55

BP 6 100 72

YIEPP 7 100 84

Job Corps 86 100 71
- 51 -

There are problems in the application of both allocation

formulae and the eligibility standards. There is little

correlation between area adult unemployment and youth unemployment, and youth employment/population ratios would

be preferable because of uncertainities about

the meaning of unemployment measures for youth. However,

neither youth employment nor unemployment data are available

by prime sponsor as a basis for allocation. It makes no

sense whatsoever from an equity or efficiency perspective

to adjust youth allocation shares of prime sponsors each

year based on adult unemployment changes since youth employment needs of areas do not correlate well with adult changes

or levels.

The income eligibility criterion is fraught with hidden

problems. Vertical inequities occur since income is a

poor descriptor of individual need and employment obstacles

given the wide range of potential and experience within any

income or demographically defined youth cohort. Family

status arrangements can make all the difference in the world.

Just by declaring independence, an unemployed youth can meet

the disadvantaged requirement. The use of school dropout

status for eligibility creates incentives for school leaving,

while the use of long-term unemployment may be reasonable

for self-supporting youth out of school for several years,

but is meaningless for teenagers who are in and out of the

labor force. A long-term unemployment restriction would

encourage some youth to remain unemployed in order to establish eligibility. Some special needs groups are already

exempted from the income standards--the handicapped and

offenders. However, relative to any income criterion,

there are hundreds of thousands of ineligible youth who,

by any individualized comparison, need help more than

many who are eligible.

Sorrowing from the YCCIP and YETP experience, it appears

that separate standards are needed for high cost, intensive

remedial services or work experience as opposed to low cost

transition services. The latter should be available for

all youth with prime.sponsors free to decide on the emphasis.

Under YETP, less than 5 percent was spent on straight transition services despite the lack of restrictions on targeting.

It does not appear that prime sponsors will go too far. It

is important that low unit-cost activities such as job

search assistance be available without income certification

requirements because they generate unnecessary paperwork

which deter the use of such techniques.

64
52

YCCIP suggests that even for more expensive activities, a

higher income standard, with clear guidande for targeting

by individual needs, can achieve the purposes of the law

and also allow for assistance to special group needs.

For instance, 12 percent of YCCIP participants are offenders,

double the proportion under YETP. Apparently prime sponsors

have used the income flexibility to serve such special needs

individuals without sacrificing income targeting since the

percentage disadvantaged in YETP and YCCIP are roughly parallel.

The preceding analysis of youth labor market problems has

implications for targeting. Because there is such wide variation within cohorts, and because permanent problems emerge

more clearly only after cumulative experiences, it makes

less sense to income target for early interventions. Labor

market status variables such as being unemployed or longterm unemployed, are ineffective mechanisms for identifying youth

with severe needs. Analysis suggests that the most productive

variables are those related to previous, longer term

patterns in the labor market and to participate in developmental activities. For instance, the fact that a youth had

three periods of unemployment in the last year is more

reflective of problems than the fact that he or she is

currently unemployed. The most effective targeting could be

done if there were an individualized multi-year record of

experiences to determine patterns of success or failure.

Because deficits are concentrated in certain geographic'

areas, and because it is not just the individuals with problems

at a point in time who are affected, targeting by area makes

more sense than targeting by individual characteristics. And

because multiple problems accumulate to more than the sum of

the parts, extra weight must be given to intensity factors

in these allocation formulae.

4. Income Maintenance Elements. The wages and allowances

paid In emploYifteht and training programs for low income

youth have important income maintenance effects. An inschool and summer combination of work for a poor youth can

provide wages equal to two-fifths of the poverty threshold

for an urban family of four. The problem comes when income

maintenance objectives are stressed over employment and

human resource development objectives. For instance, when

public work experience programs pay youth more than their

productivity level and more than can be obtained in the

private sector, society loses and the individual, while

getting needed income, may develop unrealistic work behavior and be deterred from seeking employment in the

private sector. Approximately half of the cost for plass7

room training goes for allowances, which are required by law

to equal the minimum wage. Obviously, the more that is

paid in allowances, the fewer persons who can receive

training.

6
There are several shortcomings-in present wage practices.

First, the minimum wage is, more than what most 14- and 15-

year-olds can earn in the Rrivate sector, and more than

could be earned by many older youth without work experience.

In the May 1978 Current Population Survey, the following

percentages of working youth reported earning less than

the then current minimum of $2.65.

14-15 69%

16-17 35%

18-19 14%

20-21 8%

The government jobs clearly provide attractive options to

private sector employment for some-of these youth. To the

extent that public work experience programs are less demanding than private sector employment, the disincentives

are exacerbated.

Second, there is a classic case of "wage illusion" in public

perceptions. A significant group in the population will

oppose paying 14- and 15-year-olds $3.10 per hour. When

the minimum goes up, so does the public opposition to

activities for 14- and 15-year-olds that pay the minimum.

This is particularly true when public service employment

programs ,Thich may employ the parents of these youth are

limited to wages only slightly above the minimum. There

is pressure, then, to exclude 14- and 15-year-olds from

programs they need simply because of the inflexibility

relative to wages.

Third, allowances create special problems where disadvantage and nondisadvantaged youth are slotted into the same

training or remedial education, with one group getting paid

for the effort and the other not. This disparity is one of

the major barriers to coordination noted by educators and

vocational educators.

Fourth, with scarce resources, the wages and allowance

floor tends to become the ceiling so that everyone is paid

the minimum. This eliminates incentives for good performance, and limits the steps that are available within

the public work experience sector.

Fifth, reduced allowances can help to differentiate between

those who simply want income and those who are mature enough

to devote thcmselves to career development investments. The

experience with OIC programs in the 1960`s indicates that

the absence of allowances provided a way to screen in participants who were highly motivated, so that a program dynamic

could be created. The Job Corps allowance, now $50 monthly
- 54 -

for new Corpsmembers, is egval to only a tenth of what would

be earned monthly at full-time minimum wage employment.

While full Job Corps services may be valued at more than

the minimum, the $50 is what the Corpsmembers sees in his

or her pocket. Youth who simply want income would tend to

choose work experience positioes rather than Job Corps.

This natural sorting of those committed to human resource

investment would be even greater if opportunities for work

were equalized for disadvantaged and nondisadvantaged populations so that poor youth really had work options.

The wage issue is complex and fraught with political implications. There is general agreement that workers should get

paid relative to their productivity. The minimum wage law

provides for a 15 percent differential for 14- and 15-yearolds and for certain older students on the assumption that

they lack the experience to be fully productive. If there

were a benchmarking system assessing employability on an

individualized basis, this could provide a basis for applying

such differentials. An individualized approach would be

far better than any comprehensive youth differential which

might lead to some fully employable and productive youngsters

being forced to accept wages less than their productivity

warrants.

Delivery, Design and Or.anizational Lessons

The YEDPA implementation has been carefully studied, and

there have been extensive process evaluations of discretionary projects dealing with different approaches and

delivery mechanisms, building on the experience with longstanding programs such as SYEP and Job Corps. This body

of evidence is suggestive of how local programs might best

be organized, how they can be planned and designed, the

comparative advantages of various delivery institutions,

and the appropriate division of responsibility between the

Federal and local levels,

1. Consolidation. The one point on which there is almost

total agreement among program operators, planners and administrators is the need for consolidation. YEDPA added two

new categorical programs with different eligibility requirements, activity mixes and reporting requirements to the two

sets of programs already operating locally under Title II.B.

youth activities and SYEP. The resultant problems are cataloged in all the case studies of the YEDPA experience.

Separate administrative arrangements were needed for each

program. Planning became an effort to fit together the

pieces u a jigsaw puzzle. Individual needs had to be

sacrificed to program restrictions. The MIS systems became

fractionated:and as intercategorical transfers occurred,

system accountability suffered.

6
55

Categorization was based on several assumptions. One was

that separate programs could be implemented to test alternative approaches. Experience has shown, however, that

comparison of approaches is better handled through structured,random assignment experiments. The artificial boundaries between approaches written in YCCIP and YETP were not

always good for individual participants and the differences

aere obscured in practice. Prime sponsors tended to enrich YCCIP using YETP or Title II resources where they felt

the work approach of YCCIP was too limited. There are also

countless work experience positions in YETP which are exactly

the same as in YCCIP, and the client groups do not differ

substantially. Where a major categorical program such as

YCCIP is overlaid on a broader base such as YETP, it does

not necessarily change the level of effort for YCCIP-type

activities because the prime sponsor is free to either increase or decrease the level of like projects under YETP.

The summer program is a special issue. It has been continued

since its outset as a separate category. In one year, there

was an attempt to roll it into Title I of CETA, but Congress

voted a separate appropriation as the summer approached.

Whatever the political implications, program experience

strongly suggests the need to consolidate the summer program.

First, elimination of a summer program does not mean the

elimination of seasonally expanded local activities. Prime

sponsors are certainly as responsive to the threat of a "hot

summer" as Congress and are perhaps mare cognizant of local

needs for expanded summer activities to meet the seasonal

employment patterns of youth. In fact, prime sponsors

substantially supplement the Summer Youth Employment Program

by seasonally expanding Title II, YETP and YCCIP as well as

public service employment. On the other hand, if prime

sponsors wanted to spend relatively less for summer programs,

they could simply plan to pick up YETP or YCCIP enrollees in

the summer, thus keeping a level operation. Since seasonal

youth unemployment rates locally are not available and the

allocation criteria in the law are not well correlated with

youth joblessness, particularly summer youth needs, the

special summer component tends to dump more summer money

into some areas than they need and too little in others.

Local areas are better able to assess seasonal priorities

based on their experience.
- 56

Second, the one attempt to decategorize the summer program

is not convincing since it lumped a youth program into a

combined adult and youth component, forcing a choice between

adults and youth rather than between summer and year-round

youth needs. The decategorization had not been legislatively

agreed to before the fact, and clear guidance was not given

to prime sponsors. Congress' enthusiasm for pumping money into the summer program late in the spring--one reason why

a separate program has been retained--may now be constrained

by the clear evidence of th( negative impacts this has on

local programs as well as by progxess Congress. has. made to- wards amore orderly budget process.

Fourth, there has been a concerted and productive effort to

move to year-round planning under SEEP and to better integrate

summer with school-year components. This has clearly been

complicated by uncertainty over summer funding levels and

the separate requirements of the summer program.

Clearly, th-n, the separate categorization of the summer

program has Agnificant costs and few, if any, benefits

either operationally or aGministratively.

The Entitlement program offers a special case of

categorization. It was, in fact, a legislated experiment

rather than a general program, and in this case Congressional

specification was required because an experiment of this

scale and with this concentration of resources in a few

sites could not have been mounted without legislative

backing. The question, new, is what to do with the program

and the approach, There are really two elements to Entitlement: The concentration of resources to the point where

a guarantee is possible for those with greatest need in

a specific geographic area; and the requirement that youth

must be in school or return to school to utilize this

guarantee. The evidence is not available yet to ladge

whether the school linkage is fruitful, although the signs

appear positive, but there are unequivocably positive

findings relative to the targeting. YIEPP has by far the

most disadvantaged clientele of all local CETA programs.

The characteristics and backgrounds of participants clearly

document their need for continuing and extensive interventions. The experience suggests that it is both feasible

and reasonable to utilize supplemental funding to reach

participants in poor neighborhoods in urban and rural

areas. The supplement could provide a level of resources

so that a matrix of activities cou4.d be guaranteed to

resident youth - perhaps less than the 4 years of full

employment potentially available under Entitlement, but

substantial enough to compensate for shortfalls in the
- 57 -

economy, to assure an equal chance at employability

development and to compensate for multiple and compounding obstacles to employment. It would make sense to

integrate such. a supplement into a consolidated local

system rather than adding all the controls and reports required under YIEPP to meet legislative mandates.' If it

is determined that the school conditioned aspect of the

guarantee is important, local prime sponsors could be

encouraged to adopt such an approach within their local

programs. The Entitlement operational experience suggests

thatdespitethespecial conditions required for experimentation, operational integration can be and has been

achieved for a more intensive effort in specified locations.

2. Stability and Continuity. A second lesson about the

organizatioli-of programs is the need for greater continuity

and stability. The annual funding cycle for CETA programs,

with variations from year-to-year in allocations for each

prime sponsor because of changes in relative employment

and unemployment rates, wrecks havoc with administration

and operations. This is true for all CETA programs, but

particularly those that are subcontracted, that involve

small, specially developed as opposed to expanded activities

within the subcontracting agencies, and that deal with the

schools, which operate on a continuous planning cycle with

an operating year beginning a month ahead of CETA. Youth

programs, because they tend to be subcontracted, because

they frequently involve special activities where staff have

to be brought on board and retained, and because they deal

with schools, have particular difficulties related to the

instability of funding.

Traditionally, prima sponsors have adjusted to fluctuations in annual allocations by carrying over a significant

portion of funds from year to year, by using the summer

'component as a way to burn-off extra monies or summer

allocations to continue year-round projects that are

running out of money. Now, this is more difficult because

of restrictions in carr -over from year to year. Prime

sponsors will no longer be able to "play the float."

Prime sponsors can adjust to modest changes in real

appropriations levels by fluctuating hours and weeks of

participation. Most keep some in-house components and

the remainder subcontracted and are able to retrench the

most marginal performers or least politically sensitive

subagents. But the problems have only been kept to a

minimum because" ofstea&V rising real aggregate appropriations for employment and training activities.
- 58-

The combination of annual fluctuations and requirements

for special consideration, notification and the like has

led most prime sponsors to adopt annual competitive contracting among subagents. The uncertainty of prime sponsor funding, then, compounds the uncertainty of the annual

competition for subagents. Each year these subagents must

recompete, with their chances depending on the prime sponsor

funding level. For the typical subagent, this means that

the spring is consumed by competition for next year's funding.

There are time-consuming processes of application and review.

In August or September, there may be notification to the

prime of planned funding, but it is subject to the allocation which still may not be received by the prime sponsor

because Congress has to act on the budget and the shares

then distributed. In recent years, the uncertainty has

been compounded by failure of Congress to act on the budget

in a timely fashion.

For subagents who get funded for the first time or launch

a modified or expanded program, new staff and materials

must be secured beginning October 1. Enrollment must be

increased as quickly as possible to get up to operating

levels. Training of staff and shakedown must occur at

the same time. Enrollment must subsequently be surged

in order to achieve contracted manyears since there

will be many dropouts and since the phaseup takes some

time. In other words, staff tends to be plateaued while

enrollment follows a curvilinear pattern.

As the year progresses, administrative staff must begin to

focus on the competition for the next year, The operating staff realize the uncertainty and wonder about their

own future; some look for and take other jobs. As

participant termination occurs, there is a hard choice

between carrying a smaller number of enrollees with fixed

overhead or bringing on new enrollees who might receive

only a limited period of service. If money has not been

spent or enrollment goals met, there is usually a hasty

effort to bring on more youth and meet goals. If the

activity is refunded, then there is either a phasedown as

dropouts occur in the next year, or a phaseup if enrollment has been allowed to decline because of the desire

to give an adequate duration of services to all participants. If subagents are not refunded, all remaining

participants must be transitioned.
- 59 -

This scenario is even more complicated when schools are

involved. The school employment structures are more

rigid and the schools must plan before the summer who will

be back the next fall. School starts in Septeiber, but

the new CETA funds do not come until October. Likewise,

where small subagents are mounting special components

rather than just marginally expanding existing ones,

the cycle exacerbates their problems because they are

bringing on all new staff and than are at risk of losing

all of them.

This scenario affects all aspects of operations. It

leads to programs of the lowest common denominator--

those with the least complexity that are extensions of

existing efforts and which can be expanded or reduced

with little problem. The interventions selected are

short-term so that they can be surged and can have an

immediate impact. Youth projects rarely consider multiyear or longer term sequences for individual participants

and this can only be arranged by the prime sponsor by

linking together activities. The staffing patterns

of youth projects are also affected. Only certain types

of persons are willing to live with the uncertainty or

can be found on a moment's notice. Usually, they are

uncredentialled. Likewise, they are mobile and tend to

shop around and leave for ntham jobs, undermining stability

of program delivery. The efficiency of activities is

severely affected. It is usually well into the year's

operation before effectiveness is achieved. The demonstration program experience is that local pre-employment

assistance activities take at least 3 months to stabilize,

that work projects are a 3.-6 month proposition, and that

alternate education arrangements may take 6-12 months.

Peak enrollment-may be past before operations stabilize.

Also, there tends to be too much staff at the beginning

and end of the grant period as enrollments are surged

in the middle. Finally, there are very extensive costs

involved in annual application for funding.

Multi -year funding makes sense and may be possible as

Congress moves to a more orderly budget process. Certainly it would benefit program operations. A more

stable allocation formula also makes sense for both

equity and efficiency reasons.

3. Federal vs._Local Re nsibili s. A major design

and g ationa issue s e vision of responsibility

between Federal, State and local government. Legislation

must determine which programs and activities are most

effectively operated from the Federal level and how

national objectives can be assured under programs operated

locally. The recent CETA experience provides some
60

insights. YEDPA and the implementing regulations increased

the Federal direction of local systems. First, they strongly

emphasized linkages between prime sponsors and other local

institutions serving youth--the schools, vocational education

and rehabilitation, drug abuse agencies, the Employment

Service, and the apprenticeship system. Second, they tried

to move the system to serve significant segments within the

disadvantaged population, i.e., to target even among the

income eligibles to those youth doubly and triply handicapped.

Third, they attempted to make the CETA system more of a passthrough mechanism, for instance, requiring subcontracting

with community based organizations. Fourth, they sought

new mechanisms to protect against abuses such as the substitution of youth for existing workers. Fifth, they aimed

to achieve process objectives such as youth involvement and

private sector participation.

The evidence suggests that the linkage objective was

achieved where the linkages were necessary for specific

program purposes which had been dictated or decided at

the local level. For instance. the additional funds for

in-school activities combined with the Federal pressure

for cooperation resulted in meaningful linkage, particularly

where there was already A foundation, Other linkages were

less fruitful. A Community Resource Inventory was mandated

for each sponsor, but this did not produce much more

than volumes of paper. Prime sponsors and their subagents

do not strategize linkages as much as they programatically

work them out when specific obstacles are faced. Linkages

with drug treatment or welfare agencies occurred, but

usually once the local desicionmakers decided to serve

substance abusers or young parents. The State Occupational

Information Coordinating Committees, work education

councils and the like tended to gain leverage once tasks

were defined so that collaboration could be translated

into practical terms, For instance, Federal discretionary

funds were provided to the SOICCIs for matching with other

State funds to support implementation of statewide computerized occupational information systems. This was a tangible

issue to bring together the major players in the., States

and to move beyond generalized discussions. In other words,

linkage arrangements are best achieved when related to

specific activities and when there are incentives for all

parties to cooperate.

The Federal objective to target resources to those most

in need can be accomplished where an income standard can

be utilized for eligibility and where the standard effectively identifies needs. When the groups to be served are

more difficult to define and more costly or complicated to

serve, Federal targeting objectives have less impact. Even

under YCCIP, which was not limited to the disadvantaged,
-61

income targeting was achieved. However, subsegments such

as offenders, solo parents and handicapped youth were not

reached adequately. In YCCIP and YETI', these subsegments

combined represented only an eighth of total enrollments.

Currently, there are no financial or systemic rewards for

extra effort on behalf of these groups. Again, incentives

are necessary.

In operating youth programs, unlike in the operation of

public service employment, the local prime sponsor has

little temptation to run the activities directly or to

limit them to government agencies as opposed to managing

outside contractors and subagents. Schools are frequently

outside the orbit of the chief-elected officials and

other-local agencies are not knocking down doors to get

involved. Furthermore, Proposition 13 fall-out has

limited the size of State and local staffs, and PSE

cut-backs reduce flexibility to acquire supervisors and

administrators through that program. Most youth programs

are, as a result, operated on a pass-through basis by

prima sponsors. YEDPA encouraged the pass-through by

trying to dictate which. organizations should receive funds.

There were some problems with this approach. Under YCCIP,

community-based groups were the presumptive deliverers.

Some prime sponsors turned back the money_saying it was

not worth the trouble. Others broadly defined CBO's or

simply ignored the requirement. Some followed the letter

of the law but then paid little attention to the quality

of operations. Incentives would, again, make more sense

than procedural specifications since the Federal objective

is not going against the grain of local youth programming.

The YEDPA procedures to avoid the undermining of local

wage standards and the elimination of adult jobs could have

left the Secretary of Labor as'arbiter of local wage levels,

but proved to be largely a rhetorical issue since there

were almost no complaints about such effects because of rapid

employment growth for adults and because the youth jobs

rarely competed with existing employment. The

process of labor union clearance occurred but it is

questionable whether this had an effect, since local

organized labor was hardly able to check each of the hundredw.of thousands of youth jobs created. A. simple complaint mechanism would have done as well.

More problematic is when the prime sponsor's concern

with serving youth runs directly against other concerns. A 100 percent wage subsidy in the private sector

could cause abuse if prime sponsors were free to pursue

any jobs they could to achieve placements for participants.

Either the eligibility must be restricted to youth so

severely in need that there are few if any employers who

4
would participate simply for the windfall, or there must

be a mechanism to assure that the subsidized jobs provide

upgrading opportunities for the workers filling them. In other words, Federal prescriptions must be stronger

when the self interest or service goals of the prime

might lead to abuse.

Finally, Federal exhortations for "how" things should be

accomp.lished have had little effect without incentives, specific outcome guidelines and without procedural

specifications. Youth participation is a case in point.

This occurred mostly under incentive grants specifically

designed to achieve participation but rarely in regular

program activities.

The common thread in these experiences is the need to tie

Federal oabjectives to specific activities, to avoid

generalized procedural requirements as much as possible, and certainly not to expect much from statements about

desired_EFocesses as opposed to desired outcomes.

One problem with YEtPA was that the priorities were not

clearly established among Federal objectives, and in

many cases, were mutually exclusive, leaving prime sponsors to sort them out. For instance, primes were charged with

providing meaningful career jobs for youth but not doing

work that would displace existing employees, for dealing with CSO/s and schools both, for giving "special consideration" but only when there was "demonstrated

effectiveness." Leaving the resolutio-n of uncertainty

to prime sponsors also meant leaving them vulnerable to

second-guessing by everybody with a special interest.

It is important that where Federal goals are established

in legislation or administratively, there should be

prioritization legislatively or administratively.

While these lessons suggest how Federal objectives can be

pursued in local programs, there is also some evidence

about activities which are better directed from the

Federal level. One area of Federal comparative advantage

is in projects with potential for implementation in

restricted areas, such as training programs related to

Federal lands or on government-owned company-operated

facilities. Another is programs involving mobility.

The. Federal Government is better able to concentrate

resources since the pressure at the local level is to

serve as many individuals as possible. Likewise, the

Federal initiatives may be better at certain institutional changes which may be required locally, as well as
- 63 -

in replicating, implementing err regulating new a °aches.

In other words, the Federal presence is most important

in activities representing intensive investments in

individuals, requiring more organization and planning,

ding institutional arrangements, and emphasizing

bility.

Job Corps is one such program. Expansion has been

balanced to distribute facilities more evenly relative

to the universe of need, but each center will still

draw from statewide or broader areas. Advanced career

training has been emphasized, shifting the focus of Job

Corps even more to longer term investments. This will

involve the movement of participants among centers to

enroll them in specialized advanced courses which are only

economical under a nationwide program. The Job Corps represents a level of investment in each participant which is

rarely achieved in local programs. The Job Corps has also

proved to be a major equal opportunity mechanism in many

areas where centers have been located.

The feasibility of interagency Federal youth program* has

been demonstrated under YEDPA. A range of multi-site

discretionary projects have been mounted through interagency agreements in which Department of Labor youth resources are transferred to and administered by other agencies,

supplemented by their resources and expertise. These

range from volunteer activities, post-secondary and vocational education, rural housing and health to urban

restoration, Such interagency projects have accounted for

a fourth of discretionary YETP and YCCIP activities.

Experience has demonstrated interagency agreements need

to be carefully developed at the outset to identify

responsibility and to establish checks and balances in order

to assure that youth employment and training objectives are

not downplayed relative to the goals of the administering

agencies. The key is the discretionary authority to fund

or not fund these activities which gives strength in negotiating the agreements. The Youth Adult Conservation Corps

has also been administered under an interagency agreement,

but while the program has been successful, the administrative

arrangements have not been most effective. The funding levels

are set by law, and the Department of Labor must pass these

funds through to Agriculture and Interior or else youth must

be laid off. There is really no resolution in the case of

disagreements. The Department of Labor has little if any

effective control. If the objective is to assure service

to disadvantaged youth in YACC, it could be better accomplished by a set-aside of slots rather than a tripartite

administrative arrangement. In other words, the key in

interagency activities is the, clear discretionary authority

of the funding agent.

7
- 64

Other potential Federal activities are large-scale

projects. These could be developed and designed at the

Federal level, although operated by States, or community

based groups, or nonprofit intermediaries. Several

models for such projects have been developed under YETP.

For instance, one project provides for the conversion of

low-head dams for hydroelectric production. This requires

training, specialization, equipment and multi-site

activities. The Sites are located all over the country.

projects take a special developmental and organiza- tional effort before they can be launched. Local prime sponsors lack the resources and continuity.to mount such projects without help since there are economies of scale which are only realized through large-scale or coordinated multi-site efforts.

4. C arative Advanta es ofelivee rnstitutions. YEDPA goa s o involving sc bo a, community- ase groups, local organized labor, the private sector and other local youth serving agencies, were based on the assumption that

coordination and involvement would improve programs. While this is probably accurate on the average, there are costs to coordination, and certainly no single delivery mechanism is effective in all local circumstances.

However, in eeciding the degree of emphasis on linkages, there must be some sense of the average e4lectiveness of

alternative deliverers,

Prime sponsors are clearly an effective mechanism for

allocating and managing money. Given the volume of youth

funding, it is amazing how few complaints there were about the subdivision of resources by prime sponsors. 'Fraud and abuse in CETA have been much publicized but there is evidence that only a miniscule portion of total allocations

has ever been found to be misused or stolen. The volume of activity at the local level is staggering and there is no way the Federal Government could be as directly in- volved in local programs as it was in the 1960's. The direct funding of local projects and agents from Washington

causes many problems of coordination, oversight, and equitable distribution in each locality.
In the local setting, prime sponsors appear to have a

comparative advantage in intake, assessment and assignment

of individuals as well as racordkeeping. The CETA accountability standards are now so great that there is almost no

way to operate a local program without centralizing management information systems. With YEDPA, a number of prime

sponsors have established separate youth divisions to handle

management information as well as planning, intake and assessment activity for local youth programs. In other words, a bifurcation has already occurred in many areas between youth

and adult systems. Prime sponsors vary in their emphasis

on direct delivery of services. YETP and YCCIP move them

away from this approach. It would appear that primes are

most effective as the allocating and management agent, and

are only a deliverer at last resort.

Local educstion agencies and thei-r interest in employment

and training programs are highly variable, making generalization difficult. Academic credit arrangements have

basically occurred where classroom pre-employment assistance activities have been funded. There has not been

significant adaptation by tie cooperative education system,

although the personnel has used in some schools, with pubic

sector jobs for the disadvantaged funded by YETP added

on top of the private sector cooperative education jobs

primarily for the nondisadvantaged. Alternative schools

have been funded locally under YETP where local education

agencies were ready to head in this direction but lacked

resources. It would appear, than, that there has not, as

yet, been any major change in the structure or goals of

educational institutions, but rather adaptation in order

to secure additional resources. As the Charter for youth

programs put it, the resources and efforts have promoted

change but have not been the "cutting edge."

If it were not for the availability of outside funds

tied to serving the disadvantaged, it is not at all clear

that the local education agencies would have carried out

these new missions. School-to-work transition services

are a case in point. These services are always the first

to be retrenched when local education agency budgets are

tight. The outside funding source is necessary to assure

that these services will be offered and concentrated on

youth most in need. Schools have demonstrated a willingness to let in outside community-based groups to offer

such services. They provide the natural setting in which

such activities can occur. Yet, there is nothing in the

YEDPA experience to suggest that the same targeting would

have occurred with direct funding of schools.

7

ci
- 66 -

Community-based groups also vary markedly within as well

as between prime sponsors, and the comparative advantages

in program delivery have not been measured. It appears

from activity levels that such groups are better in serving

out-of-school than in-school youth, and in targeting

resources on the harder to reach and special needs segments.

One might also reasonably assume a comparative advantage

in pre-employment and transition services which require

contact, rapport and support. The YCCIP experience has

suggested some of the difficulties in mounting very small,

short-term projects with limited staff. The quality of

YCCIP projects is highly variable. Larger local CBO's

are, of course, at no disadvantage in mounting such projects and are effective in integrating adult and youth

activities locally where they have achieved the needed

scale.

Local organized labor and the private sector have been

directly involved in the operation of programs in very

few locations. While projects resulting from their involvement are laudable and should be encouraged, it does not

appear that this can become a major element of local pro- gramming because of the enormous administrative effort

needed to energize and coordinate all the players. The

extra effort makes the most sense for career training and

entry efforts, where the linkages are needed directly into

adult jobs, where more is being invested per individual, and

where fewer participants locally are involved. The current apprenticeship system appears to be used to capacity

in the sense that preapprenticeship efforts are already

at a scale several times that of entry apprenticeship

opportunities for disadvantaged young people. Expansion of apprenticeship opportunities must be a part of

any increased priority on apprenticeship linkages

under youth programs. Expansion of apprenticeship

opportunities, particularly for low-income youth, would

require the introduction of some type of financial incentives for employees.

The use of volunteers and parents in youth programs

has not yet been explored. It is safe to say that this

dimension could be expanded since there is currently so

little involvement.

Finally, there is the question of the effectiveness of

work /education councils, private industry councils

and the like. The evidence is, again, not yet in.

Hopefully, these bodies could serve to bring together

local individuals serving like purposes. They could work

in linkage and coordination processes. Their advantages

79
57

in program delivery are subject to question, although

some tangible actions are necessary to coalesce

interests.

5. Planning. The manpower planning paradigm is central

to the present design and organization of local youth

employment and training programs. The paradigm assumes

that analysis of the local universe of need will lead to

the selection of target groups and activities from which

a plan of services can be derived which can be reviewed

with citizen's input to assure equity. The plan then

becomes an annual commitment which can be enforced from

the Federal level, with modifications whenever changes

occur. This conceptual approach is so deeply rooted in

the law and regulations that it has become almost a

"sacred cow." However, there are some serious flaws

in the application to youth programs.

First, the research that has been completed to date under

YETP indicates unequivocably that the employment and

unemployment measures which are the basis for any

universe of need analysis have questionable meaning when

describing the problems of youth. Even at the national

level, the true measure of youth unemployment varies in

different surveys by as much as 50 percent. The count

includes out-of-school, 18- year -old heads of households

the same way it does in-school 16-year-olds looking for

4 hours of work every Saturday. The data are totally

inadequate at the local level even if they were meaningful. Further, the point-in-time measures result in a

static analysis of a problem which must be considered

from a dynamic perspective.

Second, decisions at the local level are, and should

be, driven much more by experience with clients and

delivery agents than the planning paradigm allows or

assumes. The universe of need is an abstraction without

knowledge of what lies behind the numbers--i.e., who is

being served and what the service descriptors really

mean. Given the wide range in possible costs of serving

different groups, and the wide range in the severity

of problems within any demographically enumerable

category, decisions by number counts are relatively

specious.

Third, process evaluations of YETP and YCCIP implementation indicate that the planning process in most cases

occurs separately from funding decisions. Prime

sponsor staff essentially decide what needs to be done

based on experience factors; the plans are developed to

justify these decisions and then rubber-stamped by

planning councils.

5 L)
-68 -

Fourth, citizens on planning councils are not well

equipped to handle abstract and quantitative exercises. If they, instead, were observing operations and participants, they could better understand what lay behind the

numbers and could make more informed decisions, The

numerology in planning is more frequently than not an

impediment to citizen input,

Fifth, plans are used as enforcement documents even when

this does not make sense. Almost any set of activities

can be justified by labor market body counts and a

wide range of activities can be mounted whatever may be

put on paper. The Department of Labor mus v. not act as if the

decisions reached at the start of a year alrl sacrosant.

Modifications must be made when changes ara proposed

even though these must almost always be granted because

any set of activities within bounds is justifiable.

There is a paper exercise of modification and approval.

Corrective actions are difficult during the course

of the year because of the innate lags in data, analysis

and action.

All this recommends a shift to a different approach

under youth programs. Planning should be much more

oriented towards consideration of program experience

based on participant interviews, worksite visits and

institutional considerations. The plan should not be

an enforcement document. In other words, there is need

and justification for substantial departures from the

CETA administrative approaches which may be appropriate

for adult programs but make little sense for youth

preparatory efforts.

Mena ing_Youth _ loyment and Training Prp%rams

Assuming that we know the types of activities that work

best, adapt the most positive underlying approaches and

design the programs correctly, then the burden is upon

management to make them effective. Much has been learned

in the last 2 years about the management of localized

programs.

1. Capacity of Prime s?Rilpss. On top of the most rapid

job creation effort in historythe economic stimulus

publL3 service employment expansion--CETA added the largest

and most rapid job creation effort for youth. The system

was required to make substantive changes in administrative

and organizational approaches in implementing the two new

formula programs. Additionally, prime sponsors mounted

hundreds of nationally directed demonstration projects,

each requiring sophistication and care to meet experimental requirements. The quality of the summer program
- 69 -

was addressed at the same time, generating increased burdens

but leading to an improved program, Yet the CETA prime

sponsor network was able to meet all of these demands with

surprisingly few failures. If one thing has been proven,

it is the durability and yet adarability of the CETA administrative framework.

The capacity to expand rapidly has certainly been demonstrated. YEDPA was passed in August 1977, By March 1978,

there were 129,000 enrolled in brand new prime sponsor programs; and at the peak in July 1978, there were over 200,000.

This same incremental expansion could be repeated. The

annualized cost of the peak enrollment achieved in July

1978 under YETI', YCCIP and YIEPP would be 51.2 billion in

Ziscal 1981. In other words, based on demonstrated experience, the local system could quite easily absorb any likely

level of expansion in any one year.

The Entitlement experience provides insights concerning the

ultimate management constraints on expansion. In the seven

sites where the Entitlement area included large jurisdictions, the level of youth activity was multiplied severalfold. While startup problems were experienced, all were

manageable and the systems continued. Admittedly, the

Entitlement sponsors were picked through competition, but

they ended up representing a good mixture of prime sponsors

as judged by annual Department of Labor ratings. The experimental dimensions of Entitlement required many administrative

adjustments that would not be necessary under regular programs. In other words, this suggests a capacity to both

change and expand dramatically. The YEDPA experience would,

however, suggest the usefulness of a longer gestation period

if new approaches are to be most effectively implemented.

From the passagd of YEDPA to full imp'.ementation, there was

not time to develop new features such as models of academic

credit for work experience or occupational information guideliras. As a result, prime sponsors had to make decisions

without guidance and to move ahead. The 6 months from August

passage to November phaseupwere simply not enough time to

prepare properly. Entitlement had a longer planning time

and more energy was-devoted to design and management, but

many problems were encountered which could have been avoided

with a little less haste. In fact, enrollments had to be

curtailed for short periods in several sites to get breathing

room for improvements. This experience suggests that if

radically changed procedures are to be implemented, a longer

development period would be wise.
-70

2. Mena ent Information Shortcomings. There are several

other management areas which need and have potential for

improvement based upon YEDPA experience. The most basic

need is to keep better track of activities. There has always been difficulty within CETA tracking on youth participation levels and expenditures at the prime sponsor level,

and this was compounded by the addition of two new categorical programs. The problem begins with the discriptors

of activities. These are more meaningful for adults than

youth. Work experience usually means 35-40 hours of work

when it is an activity for adults; for youth it may mean 5

hours of employment weekly for students but 35 hours for

out-of-school youth. Classroom training for adults usually

implies full-time skill training; for youth it may be worldof-work exposure several hours a week in a school setting. Adults who are enrolled are usually receiving a specific

service; in youth programs, they are much more frequently ini

"holding" awaiting a linkage with another activity. The

separate summer program has created problems because many

of the enrollees are transferred from the comprehensive

program for the summer months, some are terminated and reenrolled, but the exact numbers are unknown so there is

double counting and sometimes triple counting.

Youth participation in all activities is generally of a

short duration. It is common practice for youth programs

to over-enroll to a level of 125-150 percent of slot levels

as a means of insuring that available funds for youth wages and

allowances will be expended within the contract time period

in spite of high youth turnover. Many out-of-school young

people, particularly those who are under 19 years of age,

float from one program to another after brief spells of

enrollment in any one particular program. The average program stay for CETA participants 18-24 years of age is 160

days; for those under 18 years of ace, the average stay is

only 109 days,

Because records are kept and reported separately for activity

levels, costs, and participant characteristics, rather than

on an individualized basis.which would combine all this information for each participant, it is difficult to determine

aggregate service levels. For instance, it is usual to talk

about youth served by adding enrollments in $YEP, YCCIP,

YETP and the count reported in Title 11.8. It is.common

also to estimate expenditures under Title 12.8. by multiplying

the youth share of participants times the costs. Yet intertitle transfers and concurrent enrollments are common practice.

For instance, youth may get work through YCCIP and enrichment
-71 - under Title II.B. They are often enrolled both in SYEP

and YETP or Title II.B. A best guess is that the total of

individuals receiving youth services over a year is at

least a third less than the aggregate of the participant

counts. Because youth have a shorter stay, and are in

less expensive components, the youth share of expenditures

under Title II.B. is far less than their share of partic.

ipants.

With these aggregate shortcomings, it is obviously

difficult to find out if youth most in need are receiving

more services. For instance, it has been the practice in

the past to "cream" enrollees into PSE, which is a high

cost activity, and to put less employable youth in preemployment assistance, which is a much lower cost activity.

Characteristics and cost data are kept separately so this t.reaming"

is not easily identified. The records also do not keep track

over time, although some tracking is now required by the

service limits set in the CETA reauthorization. There is

no way to tell in most prime sponsor areas what c-mulative

activities have occurred for a particular individual or a

set of individuals over the years of development and transition, or whether those most in need are receiving the most

intensive cumulative services.

Elimination of separate categorical programs at the local

level will solve some but not all of the problems. It is

necessarpsomehowfto combine reports on activity levels,

expenditures by activity and participant characteristics

if there is to be a good knowledge of who gets what. There

must be better discriptors of activities and activity clusters.

Participation must be defined to ensure that it is substantive rather than in "holding." The records must be cumulative for individuals.

3. Assessing Performance. Traditionally under employment

and training programs, outcome measures have been used to

assess performance in the belief that programs should inareaseemployment and earnings and that this should be

observable in the post-program period. The same approach

has been used in assessing performance nationwide, at the

prime sponsor level, and among subagents. Unfortunately,

this approach has little meaning f youth programs, particularly those offering pre-employment assistance and shortterm work experiame, enrolling in-school youth, and those

with a developmental focus. For instance, in the summer

program, 90 percent of participants return to school; only
_ 72_

the 10 percent who do not return to school are at risk in

the sense that the termination data say they either terminate positively or nonpositively. It is completely unclear

how many are returning to school who would not have done so

without the program, and the nonpositive termination percentage is more than coincidently similar to the proportion

of dropouts who enter the program.

Termination status alone tells little or nothing without

knowledge of what would have occurred without the intervention. Pre-/post-changes do not mean much for youth because, first, there is a maturation process usually manifested in increased earnings and stability of employment,

and second, those who are unemployed are likely to become

employed and vice versa in the volatile youth period. Therefore, an intervention might increase employment over a period

of time but this might not be measurable in the immediate

post-termination period. The answer would be to find a

control group of youth who are not served, but this cannot

be constructed ex-post-facto to determine net impacts from

The sober truth is that it is extremely difficult to judge

impacts of short-term youth programs without random assignment control groups because of the variations in young people

which cannot be picked up in demographic variables. Even in

these cases, the impacts can only be measured when there are

large sample sizes and carefully defined interventions.

Trying to determine whether a single projec or a pot-pourri

of approaches and client groups is effective.Ly run is simply

impossible based on outcome data, at least when the intervention is short-term, and most impacts have only a longterm developmental payoff.

Although termination data for youth programs have little real

meaning, the use of this data to judge performance creates

some undesirable Imcentives. Intervention strategies which

are least risky or intensive and which have the highest likelihood of placement outcomes will be emphasized whenever

heavy priority is placed on termination data to judge performance. Youth most likely to have positive outcomes will

be served, Because demographic -variables mask the broad

diversity of youth since the.potential of individuals has

not yet been tested, it is reldtively easy to "cream" within

any enforceable demographic targeting categories, and the

incentives can have a strong effect. Moreover, numbers

tend to become a substitute for careful review. It is

enlightening that when serious problems were found as a

result of intensive monitoring of SYEP in eleven cities
-73

in 1979, some of the worst problem cases were not with

prime sponsors adjudged to have significant problems by

CET -wide reviews even though in several cases their large

summer programs were extremely deficient.

The best way to judge the adequacy of youth employment and

training efforts is to look at the quality of input rather

than the outcomes. In the summer program, for Instance,

where the outcome data yields next to nothing, the program

had serious and widespread problems in the quality of the

worksite activity--slack time and attendance procedures,

too little work for participants and poor supervision.

These could only be assessed by onsite reviews. Once the

prime sponsors and the Department of Labor intensified the

monitoring forsuch visible input problems in the last 2

years, the quality dramatically increased. Sophisticated

random assignment demonstration programs were mounted under

SYEP last year to test ways to increase return-to-school

rates, to make the summer experience a better transitional

mechanism from school leavers, and to serve troubled youth.

Because of the controlled conditions, the impacts could be

measured for these structured sets of summer activities.

If successful approaches are discovered, these can be implemented by developing models and assuring that they are adopted

in local programs, or, again, focusing on the input side.

The experience, then, is that inputs must be assessed rather

than outputs in judging performance of prime sponsors and

projects. Demonstration activity and structured evaluations

can, in the case of large samples, suggest the most effective

inputs. Program-generated outcome data maybe effective in

measuring- performande of adult programs, but it is not for

youth activities.

4. Directing _Performance. It is apparent that a system

which has difficulty tracking activities, participants and

costs, and which is using measurements. of performance which

are not entirely meaningful, it not in a strong position to

fine-tune the content of programs. Faced with these assessment problems, there has been a heavy reliance on process and

activity level specifications. _YEDPA and its implementing regulations were incredibly detailed, with a 22 percent setaside for in-school programs, supervisor -to -youth ratios,

the proscription of substitution, the requirement for enrichment of work with services under YETP and a proscription
-74 -

of the sane thing under YCCIP. Procedures were required

for special consideration, agreements with local education

agencies, labor union clearance, and the development of

community resource inventories to promote linkages. There

is documented evidence that most of the major goals which

were the focus of these requirements and specifications

were attained: There was increased cooperation with the

schools. Worksite supervision apparently improved. Substitution was held in check. And community based organizations

got a larger share of the pie. This does not mean, however,

that the procedures and approaches were the means to these

ends or the most effective ones which could have been employed.

It is widely assumed that because education/CETA linkages

increased under YETP, that the 22 percent set-aside and the

LEA/CETA agreement requirement were the key factors; and it

is sometimes projected from this that more of the same is

needed if further cooperation is to be achieved. Yet the

22 percent set-aside did not really "torque" the system

since under Title I of CETA in 1977, more than half of the

enrollees were under in-school programs and in fact, the

aggregate mix of youth activities in local CETA-funded programs changed little after the implementation of YCCIP and

YETP. LEA/CETA agreements in most ca-es were general boilerplate statements. Real changes occurred where the extra

resources under YETP provided the wherewithal for collaboration which had already been nurtured, and where primes and

the schools simply got the message that cooperation was

fashionable. The same collaboration might have been achieved

simply by the mandate that when in-school programs were

developed, there should be an attempt to involve educators

more in the process. In other words, the procedures were a

signal rather than the driving force in change.

Another example is the supervisor-to-youth requirement

specified in the regulations. Case studies have suggested

that the attention to worksite quality has been greater under

YETP and YCCIP than under previous prime sponsor youth programs. However, the worksite assessments found little

correlation between supervisor ratios and quality, and also

found fewer youth per supervisor under previous programs.

Apparently, the work quality was improved by the clear statement that this was a priority, not by the procedural requirements.

Special consideration for community based groups was defined

almost as presumptive delivery in the case of YCCIP, and

more in process terms for YETP. Community and neighborhood
- 7 - groups got a bigger piece of the action under YCCIP. Yet

some primes had to work hard to find any capable community

based deliverers; others returned the money; most funded

and then forgot the YCCIP projects, failing to integrate

them into the local system. Special consideration under

YETP meant a paper process of notification and selection

which caused A lot of unrequited expectationSrparticularly

where a fair share was already going to c,-,nmunity groups

and the only effect was to heighten inter_al compeition.

IncentLves and clear direction could probably have achieved

the same objectives as procedural requirements.

One of the inconsistencies of YEDPA was the requirement that

all in-school work experience be enriched with counseling,

occupational information and efforts to overcome sex stereotyping, while YCCIP was, by law, a "sweat" program emphasizing hard work without enrichment. All disadvantaged

students who are looking for jobs do not need the extras,

while many of the out-of-school youth in YCCIP do. To get

around the rules, many prime sponsors paid for the services

to YCCIP youth from other programs. The simple fact is

that no rule specifying a mix of services should be or can

be applied across the board. Ihdividual needs vary. There

is a temptation to dictate activity combinations or sequences

through law or regulation in order to shift the aggregate

average mix, but this creates operational problems at the

local level and does not lead to the most appropriate mix

of services for individuals.

Probably the most difficult issue in the law is the requirement for maintenance of youth service levels. Youth participation under the comprehensive CETA Title II.B. (previously

Title I) local program was not to be reduced because of the

resources added by YETP and YCCIP, freezing prime sponsors

to a youth service level that was not necessarily appropriate

and which varied markedly from one area to another. Over

time, any rule such as this becomes more and more unrealistic.

It is also almost impossible to enforce since the participant

counts can be easily manipulated and do not equate with

resource outlays. Further, prime sponsors are allowed 15

percent variation from planned enrollment levels in order

to gi.ve them needed flexibility, but this variation from

the announced youth share is enough to offset a substantial

portion of the impact of YETP and YCCIP. Clearly, the proper

approach would be to consolidate all activities for which

Congress wants to specify through formula the local service

levels.
- 76 -

If these various procedural specifications do not make

a great deal of sense, they do require a great deal of

paperwork. Limited Federal and prime sponsor staffs spend

almost all their time processing papers to document processes and to meet specific requirements. The Federal

Representatives are not out in the field looking at programs but rather seeking to determine whether notification

letters are in the files, whether modification requests

are consistent with youth service levels, and whether

Community Resource Inventories have been completed. None

of this has anything to do with the quality of the activities being funded.

Perhaps most critically, the cards are stacked acainst enforcement of reasonable standards. Prime sponsors violate

regulations simply because there are so many procedures to

meet which do not make sense in local circumstances. The

only real penalty for ignoring or bending the regulations

is recovery of funds, but the issues for which this has

ever been done are limited. The prime sponsors are provided

funds by formula. To recover these funds, the burden of

proof is on the Federal enforcers and the case must be quite

compelling, perticularly since enforcement is ex-ost-facto and

means reducing services to participants. It would be

preferable to have an incentive system where certain funds

are only available if the prime roves that it comes up to

standards and meets conditions, so that the burden of proof

would be shifted. It is also difficult to judge both quality

and procedural dimensions at the same time. Bureauracies

are much better with the latter than the former. They are

unlikely to exercise normative judgements even in cases

where the conclusions are obvious. For instance, in some

summer program sites in the past, it was well known that

most enrollees were not being provided useful work experience.

This was documented by independent onsite monitoring of inputs, but it was only changed after extensive outside pressure

and as a result of an ad hoc effort that brought national

office personnel and others without any vested interest in

particular sites to handle the monitoring. Managewnt studies

have revealed that almost all the time of regular Federal

Representatives with front-line responsibilities are spent

in the office processing papers rather than in the field.

In part, this is f-estimony to the complexities of our society.

But in part, it is also because procedural specifications

and quantitative reviews have been overemphasized.

5. Caucity Building. YEDPA thrust the CETA system into

some unfamiliar areas such as the awarding of academic

credit for work experience, alternative education, occupational

information systems, and efforts to overcome sex-stereotyping.

The reach of youth employment programs is so broad in terms
- 77 -

of the participant groups to be served, the problems that

have to be overcome, and the service options, that enormous

expertise is required. Specialized knowledge is required

to deal with handicapped youth, substance abusers, runaways,

solo parents and offenders. Likewise, knowledge is required

of career education, vocational education, cooperative

education, alternative and post-secondary education options,

governance systems and institutional capacities.

Surprisingly little priority has been given to building the

capacity of the CETA system. In contrast to education and

vocational education where there is an enormous investment

in the certification of personnel and in continuing training,

there has been little attention to this under CETA. Prime

sponsors have been given the regulations and then left to

work out the answers. The continuing expansion and reorientation of CETA each year has focused most attention

on delivery and adaptation to ever-changing rules. Procedures have to be continually relearned at the expense of

the substance of programming. Because of expansion, CETA

has been able to attract extremely bright and energetic

persons at the local level, but there is high turnover rate

within the system, generating a need for continual retraining.

It is clear that a much expanded effort is needed to build

delivery and management capacity. One key is State participation. Prime sponsors are localized but many of the activities with which they must deal in youth programs are State

systems--education, corrections, welfare, vocational education and the like. States must play a central role in

coordination. Currently, there are substantial funds for

these purposes set aside on a formula basis, but these have

not been carefully coordinated at the Federal level or in

most States. Federal incentives, for instance, in the

replication of computerized occupational information systems,

have been used with some effect under discretionary YETP

activities, but much better networking is possible and

needed.

Community based organizations and prime sponsors have grappled

with the concept of "demonstrated effectiveness" and the

"chicken and egg" implications t.is has for youth serving

agencies and neighborhood groups at the local level which

have not had previous contact with CETA to demonstrate

their ability. Support for community based groups other

than CAA's mostly has to come from the administrative portion

of operating grants; this is not a very dependable way of

building viable organizations at the local level. There is

also no mechanism for developing community based capacity
- 78

where none now exists, so there continues. to be An uneven

distribution. The answer is not just to .set -aside program

operating dollars; without the capacity, set-asides debase

the quality of services and may or may not result in building

institutional strength over time If the community and

neighborhood based orientation is to continue, there must

be greater concern and priority for direct institutional

support.

The Department of Labor has networked some organizations

such as Opportunities IndustrializationCenters (OIC), SERJobs for Progress, and the National Urban League as well as

70001, yet. there are no general incentives to prime sponsors

to undertake developmental work, no support of other networks of community groups, and too limited technical assistance support even for groups which have been helped.

Prime sponsor staff receive all too little assistance from

the Federal level because of limited funds. While administrative resources can be used for staff development, each

prime sponsor has to work out its own arrangements and there

is no incentive for such activities. Not surprisingly, they

are often pushed to the "back burner" by critical events.

Under the summer program, national conferences and extensive

technical assistance materials prepared at the national

level apparently had a positive impact on operations,

suggesting that investments at the Federal level can have

a payoff. Substantive activity areas need to be addressed

so that prime sponsors can effectively cone with their

responsibilities in education, social change and the like.

There also must be expanded networking to educate youth

serving agencies into the mysteries of employment and

training programs.

Finally, there is a need to vigorously market the results

of experimental and demonstration programs. As has been

suggested, the most effective way to find out what works

best is random assignment, control group experiments; the

way to improve performance is to find out the most effective models and then to replicate them in local settings.

All reviews of research and demonstration activity in the

1560's suggest that the weak link was in the dissemination

and application of findings. A vast array of experimental

activities has been undertaken under YEDPA. As the findings

are generated in the next several years, it is abso 'rely

critical that they be disseminated aggressively. The ssive

investment in knowledge development will not realize payoff unless there is an equal effort in knowledge dissemination

and-application.

91
- 79 -

RESTRUCTURING AND REORIENTING THE

YOUTH EMPLOYMENT AND TRAINING SYSTEM

New Direction=

The analysis of youth employment problems and the lessons

from program experience suggest the need to reorient youth

employment and employability development efforts along the

following lines:

1. The performance requirements for youth participants

and the performance standards for youth employment and training activities must be increased. Publ,icly-funded work

experience must require and deliver "a day's work for a days

pay." Remedial training and education demand attendance

and conscientious effort. There must be rewards for good

individual performance, safety nets for those who are unable

to perform, but termination for those who are unwilling.

The same must apply for service deliverers.

2. The system must provide for a multi-year sequencing

of activities which will build competencies including, first,

the coping skills needed to look for and hold a beginning

job and to set career courses, second, the ability to ,work

dependably at an entry job, third, basic reading and writing

Skills, and fourth, a career job skill. Eachindividual

may develop at his or her own pace in attaining these competencies; some will need little or no help while others will

require & structured series of activities over several years.

The system must be able to track development of individuals,

and to provide assistance based on previous experiences in

the program. It must be an individualized approach.

3. The attainment of these competencies over time must

be benchmarked. The recognition of accomplishment will provide individual incentives. The benchmark can be used in

prescribing services on an individualized basis. Most

critically, it can provide'a proof to employers of the

abilities and commitment of young people who might otherwise

be considered too "risky" to hire. Youth programs must

give increasing emphasis to sorting among disadvantaged

individuals so that those with ability and motivation can

use the experience as a stepping stone.

4. Poli tes, programs and prescriptions for specific

participants must take greater cognizance of the individual i

developmental process. On the average, although certainly

not for every youth, intensive remedial education and career

training will not be fruitful until the late teens or early

twenties. The same holds for career entry efforts. Fourteenand fifteen-year-olds should generally receive broadlyfocused services which are less costly. For in-school and

out-of-school teenagers whose problem is the lack of temporary

jobs, disciplined work is needed which increases in demand,

duration and reward with age.

9,
To reorient youth employment and employability development

efforts in these ways, the following restructuring is proposed:

1. All youth employment and employability development activities which as to prepare or sustain

youth up to the point of career entry or career training

would be consolidated at the local level. The consolidation would include SYEP, YCCIP, YETP, YIEPP, and youth work

experience and pre-employment assistance components of CETA

Title II.B. There would be increased flexibility for local

deoisionmaking in this system. There would still be a

summer component in local programs, but with year-round

planning and levels determined by local labor market conditions rather than dictated by a categorical allocation

formula.

2. Federal priorities for these local efforts would

be pursued through incentives rather than complex and unmanageable regulations. Prime sponsors would have to have

satisfactory ratings to be eligible for incentives, creating

a reward for performance.

3. The local consolidated career preparation system

would provide individualized, sequenced services needed to

prepare youth for career training or entry. A Career

Development Record would track the experiences of participants over the 14 to 21 development period.

4. There would be a set of Career Development Ben

marks established in each local area Individual participant

progress would be tracked against these benchmarks which

would measure world-of-work awareness, demonstrated work

maturity and dependability, basic educational skills, and

vocational competencies. These Benchmarks would be used to

document the achievements of youth participants.

S. Federally-directed activities would focus on career

training and career access, i.e., those more expensive and

targeted activities which will help young adults who would

not otherwise transition successfully into the primary labor

market.

6. There would be new procedures for accessing private

sector jobs for young persons with no previous private sector

work experience and for more mature young adults entering

career ladders from which they would otherwise be excluded.

In both cases, there would be a limited "try-out" period
81

during which the youth would be publicly payrolled. This

would be in the nature of vocational exploration with an individual determination that the young person had not achieved

minimum competencies to be productive. It would not change

current procedures but rather utilize them fully in tandem

with the individualized assessment system. In addition,

there would be support for expansion and replication of private

sector intermediaries.

7. There would be increased flexibility income maintenance and wage provisions. The FLSA learners and student

differentials would be utilized for youth lacking employment

experience, while wages above the minimum would be authorized

and encouraged where youth demonstrated increased productivity

or skills in work experience. Allowances for training and

education would be optional with emphasis on providing incentives for performance.

The vehicle for this restructuring of youth employment and

training efforts would be an amendment to the Comprehensive

Employment and Training Act similar to the Youth Employment

and Demonstration Projects Act. It would rewrite the present

youth titles as well as the administrative provisions for local

systems. It would be mounted in conjunction with parallel

legislation on the education side to improve basic skills

preparation.

This approach has been accepted as the policy of the Carter

Administration after broad consultation with experts and

interest groups as well as careful assessment of the problems

and programs by the Vice President's Task Force on Youth Employment. The specifics were articulated in Title I of the

Youth Act of 1980 introduced in March 1980 (Appendix 2)-

The basic employment and training concepts of Title I of the

Youth Act of 1980 are quite simple. Under Part A of the

program, local grants for YETP, YCCIP and SYEP would be consolidated (although there would continue to be a separate

allocation for SYEP). A special element in the allocation

forrnula would provide "equal chance supplements" which would

per it more concentrated programming in neighborhoods with most

severe needs. There would be uniform eligibility criteria

and one set of regulations for the various activities' under

the basic program. All youth age 16-21 in families with income

no greater than 85 percent of the BLS lower living standard

would be eligible. Up to 10 percent of funds could be used

prime sponsors for youth not meeting these income require-

.:ants, and youth with se/ere problems such as mental and physical

,4ndicaps could be served regardless of income. Youth age

A-15 would be eligible for developmental services and summer

employment. Under this basic program, each prime sponsor

would, through a consultative process, develop and maintain
82 -

benchmark standards accepted in the community to serve as

indicators of youth achievement needed to obtain and retain

employment. These benchmarks would include a pre-employment

level indicating a basic awareness of the world of work;

work maturity demonstrated through regular attendance and

diligent effort in work experience; basic educational skills;

and occupational competencies.

Under this basic system, each youth would be individually

assessed and would participate in the formulation of an

employability development plan. This plan would specify

services and activities to be received but also the performance

requirements for youth and the expected outcomes. An individualized record would be maintained and periodically updated

tracking the achievement and performance of youth. This would

be utilized in adjusting the employability plan as experience

accumulated. The management information systems of prime

sponsors would have to be adopted to support this individualized

approach (Appendix 3).

Incentive grants would be made available to prime sponsors

willing to commit matching funds from their basic grants for

activities and special projects meeting needs and utilizing

approaches designated by the Secretary of Labor. There would

be separate Education Incentive Cooperation Grants for

specially designed in-school programs meeting national guidelines and backed by local matching and local cooperation

between CETA and the schools.

The Secretary would also have a separate fund for large

scale federal projects and interaciency efforts. These projects and activities would focus on intensive training linked

directly to jobs, or on transitional employment with the

same outcome. They would concentrate on mature young adults

certified and referred by the local CETA programs. Finally,

there would be expanded training and technical assistance

activities to help prime sponsors build the capacity to better

serve youth.

All of these programmatic features in the Youth Act of 1980

are based on approaches tested under the Youth Employment and

Demonstration Projects Act. The design is not finalized, but

the basic richanics of these elements have already been

developed (Appendix 4).

While the textures of the Act may be changed in the legislative

process, the Administration's proposal addresses all the

theoretical and practical considerations raised in the review

of youth employment problems and programs. Most interests i

are considered; although, of course, there are unavoidable

tradeoffs between different objectives (Appendix 5).

95
- 83

Budget and Policy_pptions

These recommendations for restructuring the employment

and training system for youth are neutral with respect to

aggregate funding and the priority for allocating resources

among target groups and service approaches as well as

between federally and locally directed efforts. If there

were no additional resources, the proposal would merely

consolidate the four local youth programs (SYEP, YCCIP,

YETP and Title IIB youth developmental components) offering preemployment services and basic work experience. The Job

Corps would continue, and the present interagency and

large-scale projects funded with discretionary YETP and

YCCIP resources could be supported with federal discretionary

resources. At the local level, the sequencing of activities

for individuals would occur by better assignment based on

the record of each person's past experience, but there

would be no increase in the likelihood of service for

disadvantaged youth.

Within existing resources, and the proposed program

design, there could be shifts in emphasis among target

groups and service approaches if this were desired:

o If the aim were to increase intensive career

training and career entry experiences for mature out-ofschool youth, this could be accomplished by expanding

the career entry programs under the Secretary's discretionary

section relative to the local career preparation programs, as

well as through the design of the incentive grants to focus

on mature, career entry ready youth.

o if the aim were to exert greater Federal influence,

Federal incentives for local programs could be increased

as a share of formula allocations or discretionary

resources could be raised.

o If the aim were to serve more out-of-school youth

with entry work experience, this could be accomplished

by the relative emphasis and design of the Federal

incentive categories. They could emphasize or deemphasize

this targeting feature.

o if the aim were greater geographic targeting, this

could be achieved by expansion of the Equal Chance

Supplement and by priorities placed on the location of

job and training opportunities funded with discretionary

resources.
- 84 -

o If the aim were more intensive service for fewer

individuals, this could be accomplished by narrowing the

eligibility requirements for the basic local preparatory

programs, increasing the incentives for special needs groups

programs, increasing the relative size of the Equal Chance

Supplement or relatively expanding the more costly career

training and career entry employment components funded

under the Secretary's discretionary section.

In other words, the proposed system allows specific

decisions and priorities to be translated straightforwardly into allocations for different programmatic

components. The system can be adjusted to almost any

set of priorities.

Nine budget and policy options are presented in Tables

6-11, detailing expenditures and opportunities created by

opportunity category and age group. The options represent three

annual funding levelsa zero, $1 billion, and $2 billion increment

from 1980 operating levels under existing programs. The

analysis is based on 1980 costs. If the changes are

implemented to begin full operations in 1982, the aggregate

and detailed outlays would have to be adjusted for inflation

in order to achieve the opportunity levels indicated, The

$1 billion and $2 billion budgets are premised on the

assumption that the CETA Title II B, D and VI allocations

would not be reduced, although youth pre-employment service

and work experience currently financed under these titles

would be picked up by the new initiatives. The $1 or $2 billion

increment to current levels of SYEP, YCCIP, YETP, and YIEPP

would be offset by reduced expenditures for youth work

eperience and pre-employment services under these other titles.

More adults would be served as a result of the reduced youth

expenditures, but also more young adults ready for career

entry or career training and rernediation to the extent of

their share of the universe of need for the types transitional

and remedial activities which will become the sole focus of

these other titles. The net impact on youth opportunities--

the $1 billion, minus reduced expenditures for youth work*

experience or pre-employment services under Titles II and VI,

plus the added expenditures on young adults under these titles--

is estimated to be $635 million in expenditures for youth. For

$2 billion, the net impact is $1,635 million.

-/ It is to be noted that the II and VI budget figures for

1982 are based on the 1988 levels in the original budget

submitted by the Administration.
-85 -

Under this schema, the employment and training impacts

of the additional $365 million for adult services must be

considered along with the youth impacts. Alternatively,

the budget options might be viewed as $635 million and

$1,635 million options if there were an effective way to

reduce other Titles of CETA by the estimated present

expenditures for youth work experience and pre-employment

services. Some such reduction would be necessary under

the Zero Budget Increment option. However, the Department

strongly recommends the maintenance approach for other

Titles of CETA if there are adequate additional youth funds,

i.e. at least $1 billion. The reasons are as follows:

First, prime sponsors vary dramatically in expenditures

for youth under the non-youth portions of CETA, presumably

in response to varying local conditions and relative

needs. Those with an above average share of youth could

either intertitle transfer to the basic Youth Act programs

for work experience and pre-employment assistance, or could

serve more adults or young adults. However, those primes

with below average youth shares would not receive adequate

resources under these other Titles to maintain adult service

levels if their allocations were reduced by the nationwide

average proportionate expenditure on youth.

Second, any maintenance of service level approach which

would require prime sponsors to supplement Youth Act allocations

by the amount spent in the previous year for work experience

and pre-employment assistance under other Titles would find

the same difficulties as the maintenance of service effort

under YEDPA.

Third, a dramatic expansion in teenage service levels

would probablyleave most prime sponsors with the need to

service more adults to achieve a reasonable balance. The

margin provided under the recommended approach would make

it possible to meet these requirements.

Fourah, any budget dislocations would affect necessary

coordination between adult and preparatory programs at

the local level. It is desirable that prime sponsors

have more money to provide career entry and career

remediation for young adults. If resources are constrained, it will be difficult to achieve continuity

-between the local preparatory and career entry components.

For each of the three budget increment options, there are

three alternative resource allocations by age of participant

and activity category. Each reflects a different priority.

One continues the current proportionate mix of pre-employment

services, work experience in-school, summer and out-of-school,

career entry remediation and training and career entry
ilre-Emp!oyment

J._As4istance

14-15 5 16-17 91

10-19 5 0=41 2 14-21 105

14=15 45

16-17 113

111-19 5 20-21 2 4-2.1 165

14-IS

16-17

10-14

20-21

14-21

5 93

5

r2 105

Preparatory

Work Experience

.

Table 6

ExpENDrruncs By alum

ZERO BuBaBT INCREMENT

Current Mix Maintained

11 264 4 97 374 108

74 209 553

22 84 490

204 931 1155

Summer Our-o1 -

In-School Only School

Intensive

Remodiation

95

464

371

930

Carper_prOparation Emphas1!

Career Entry

Employment TOTAL

204

767

324 1629

445 1414

769 4094

41 264 4

- 354

147 424 108 95 887

124 259 603 371 281 1643

22 04 490 278 334 1210

1 334 1031 1205 744 615 4094

Career Eutry Enqthai s

11 264 4 284

37 374 108 95 767

74 209 351 564 421 1629

22 04 290 471 545 1414

704 931 755 1130 969 4094
-87 -

Table 7

EXPENDITURES BY CATEGORY

51011.1,10N BUDCET INCHMENT

Current Mix Midutained

Pre-EmplOyment

_ ASSiStAhCO

Privralor- Wotk Experience

Entry Trainin9

koWlatiun

Career Entry

1n-School _Emv12ymvrit

Summer Olit-of= Colter

School and

14-h 6 13 _MIL

304 12 335

16-11 107 112 431 125 95 010

111-19 6 85 241 618 550 174 1894

20-41 25 91 565 428 513 1630

14-21 121 215 1071 1140 1073 807 4729

Career Prepatation Emrhil81s

14-15 56 43 304 12 415

111-11 157 162 401 125 95 1020

18-19 150 296 638 442 326 1858

N-11 2 67 97 565 321 384 1436

14-21 221 422 1178 1340 1158 710 4729

CalMI Mil Elvhatils

1415 6 11 304 12 325

16-11 III! 112 431 125 95 870

18-19 6 55 191 518 570 432 1792

10-21 2 20 97 465 528 620 1732

4-21 121 200 1021 1140 1191 1052 4129

10
Table 8

EXPENDITURES BY CATEGORY

BILLION BUDGET INCREMENT

==== Corot fix Maintainvd

141faratory :!.Lerivnee

_ 1 ho-nkploratqa

Assistance In-School

Sommer Oa-of- Career Entry TralnIng Career Entry

Only School and Repediation 4E10 gent ICIAL

14-h

16-17

1N-19

20=11

14-21

7 130

7

3 147

15 136

103

31 285

370 6 524 146

293 779

117 68C

95

615

523

1233

450

693

398

1031

2247

2053

5729 1304 1617 1143

Caner Preparation IhasIs

14-15 187 28 370 El 593

16-11 140 186 573 153 95 1187

1N-19 7 133 322 023 538 394 2217

20- 3 52 117 606 408 466 1732

14-21 377 399 1382 1670

Career Ent r ham

1041 060 5729 I

14.15 107 15 370 6 - 578

16=17 150 136 524 146 95 - 1051

18-19 7 AO 262 680 616 450 2095

20-11 3 31 117 625 521 706 2005

14=11 34/ 262 1273 1457 1234 1156 5729
Table 9

OPPORTUNITIES BY CATEGORY

ZERO BUDGET 1HCI EMEHT

ilirron1 17ric11airita 1 Pr lar.itory Wolk Expritlice

16-11

_-19

20-21

14-21

S(-1${4'C

27,800

92,800

2,300

1000

18,000

77,903

29,400

!=ttowevr (lilt -n(- CareQr Entry Training

Only School and Remediatien

Career Entry

Employment

361,000 1,000

381,800 17,200

153,200 69,100

57,000 49,000

18,000

88,400

70,700

36,000

19,400

123,900

_11,300

133,600 953,000 136,300 177,100 85,400

Career Pre araLon EmetEla

14-15 250,200 67,100 361,000 1,000

16-17 112,000 118,100 432,800 17,200 18,000

2,300 49,300 190,000 78,600 70,700 31,200

20 -21 --____-- 100 8,300 57,000 49-000 53 000 _37,100

14-21 365,400 241,800 1,040,800 145,800 141,700 68,300

Career Entry EiwbatiiS

14-15 27,800 18,000 361,000 1,000

16-17 92,000 77,900 381,800 17,200 18,000

10-19 2,100 29, 400 153,200 44,100 107,500 47,100

_20-21 _.1000 8,300 57 000 29,000_ 60,500

14-21 123,900 133,600 953,000 91,300

_89,!300_

215,300 107,600
-90

Table 10

RTUNiTIES OY CATEGORY

II _BILLION nuuGer INCAf 1FNT

Current flux Maintained

Preis:oratory loth Experience

14-15

16-17

18-19

70721

14-21

Pre-Employment

Assistance In-School

20,800

89,900

33,900

9-f60111 =---=-

154,200

Sumner Out -of-Career Entry Training

Only School and Ile iiatien

Career Ent!

Enploy114n1

32,100

107,100

2,700

1-200 -_-

416.600 1,200

440.600 19,800

176,800 79,700

_elan 56 ir.---- 5"

1,099,800 157,200

20,800

102,000

81,600

41580

57,800

143,100 204,400 98,500

Career Preparation ESiphasis

14-15 311,400 70,400 415,700 3,000 - 16-17 156,700 130,100 491,000 20,700 18,000

18-19 2,800 59,600 217,000 79,700 84,200 35,800

20721 -.- 1,000 25,300 6S-800 56-500 -.-__, ---r---= f1,200 42 GOO

14-21 471,900 285,400 1.189,500 159,900 163,400 78,400

Career Entry mph

14-15 33.4:10 21,300 415,700 3,000 - 16-11 106,800 89,900 440,000 19,900 18,000

10-19 2,800 21,900 140,000 67,200 108,600 48

100 7.500 65,800 46,500 100,600 68,800 SOO

14-21 143,100 140,600 1,061,500 136.600 227,200 116,800
14-1

16-17

18-19

20-21

14=21 173,200

14-111 1,068,500

16-17 179,600

10-19 3.200

_0-21 1119

14-ZI 1,252,800

14=1% 1,068,500

16-17 161,200

18-19 3,200

20-21 1,500

14-21 1,214,400

Table 11

OPPORTUNITIES BY CATEGORY

$2 BILLION BUDGET INCREMENT

Current Mix Maintaineu

PreppturyWo0 Exerieure

Irc-hiq'oyuwrit l

514nee In-School

Summer

NIL_

504,700

Out-ofSchool

Career Entry Training

and Remediotton

Career Entry

EmVloyrnent

8,900 25,200 400

129,700 108,900 531,900 24,000 25,200 - 3,200 41,100 214,200 96,600 123,600 50,100

1,400 11,600 79,700 681500 9E000 69,100

186,800

45,800

1,312,400 190,500

c.a_rgrerirlqaniaois

247,600

-

119,400

505,900 7,000 . 149,400 5115 100 24,400 18,000

52,800 236,000 102,800 102,500 43,800

33,100 79,400 63,600 77,800 51 700

261,100 1,406,300 197,800 198,300

_L__-

95,500

entry

24,500 505,900 1,300 - 109,200 534,900 23,300 18.000

11,800 192,000 85,000 117,400 50,000

11,700 _79,400 75,500 78,400

177,200 1,312,200

.62,500

172,100 n0,9a0 128,400

10,
- 92 -

employment. A second alternative is a career preparation

emphasis putting priority on teenage work experience and

pre-employment services. The third places priority on

career entry employment activities and intensive remediation

for young adults. The specific allocations to the different

categories in the second and third priorities are judgemental,

considering the relative opportunity deficits as well as

program experience. It is important to note that at the . = $2 billion increment, career entry deficits as estimated

previously can be fully met so that additional resources

are distributed to the pre-employment assistance category.

The nine budget and policy options are analyzed from

several perspectives: the incremental changes in outlays

for the different types of activities and the resulting

impact on opportunities, the incremental impacts on different

age groups, their effects in reducing the opportunity deficits

estimated earlier, the projected incremental impact on fullyear equivalent youth employment, the overall distribution of

resources by activity and by age, and the estimated outlay

shares for in-school youth (Table 12). It must, again, be

stressed that the options necessarily rest on a broad array

of assumptions. However, they suggest that there are some

significant choices which can and must be made in the appropriate

process and which have a number of implications. The career

preparation emphasis options have much greater impact on

the younger, in-school population and have more "bang-forthe-buck" in terms of employment opportunities created and

persons affected. The career entry emphasis options have

directly the opposite effects, although they are structured

to reduce out-of-school work experience for older youth first

on the assumption that these are the ones better served by

training and career entry efforts if they can be managed.

The $2 billion increment provides resources to saturate the

universe of need (as conservatively estimated) for career

entry employment and career training and remediation; the

extra resources are utilized for pre-employment services for

teenagers on the assumption that this is consistent with

the basic Youth Act concept of making better use of existing

employment opportunities through individualized planning,

sequencing and the like.

Implementation of Alternatives

These budget and policy options can be achieved through

variation in the funding levels of the Title I Youth Act
93

Wit 12 ANALYSIS OF BUDGET AND POLICY OPTIONS

_____ _ . _ _ __ ___ zut! ow 10121ENT IL 611.1.101+ MUT WOW il 1141011 11111AlET_INCIWIEr

Comer 04 Qtreer Prep Career Entry Current Mk Caner Prep; Career Wry Current Mu i Career Prep: Career ratry

Itilnialned Nil!itsis 01101aels HA+ WA. _9114ula imlu,..21Lis NAIntalued. Ijmii!arda EN1_,J;eer

9110 ay fie oeepl ($11111.1a0s)

Pre4hploymeot ANIWAUCO . 50 . 16 116 16 42 272 242 rrepai4iooy lion Ftperleoce 200 =400 150 650 13 916 1161 102

In,Svli on, I (110) - (11) (218) (.4) (81) (195) (58) Sooma (100) (142) (Al) (92) (313) (451) (342)

Ina -ill -Su 114111 . (dloci Vnify 1141414

4114 0011N114tIon

(50) -;06

(-400) 4200

(185)

141

(185) (-45)

261

(462)

101

(515)

III

(302)

304 eiireel Fla i y filifkr.enr

opporioaity loqqloeo_111

-154 +200 118 -59 283 314 91 381

Cjlevi, (0001s1

riT-66ploymvia Ass19(Ancu 241,5 19,2 148,0 19,2 49,1 1,128,9 1,110.5

Poydr4tory 00(6 Exporleoce

io.41,600i . 108,2 - 20,6 151,8 1,0 51,2 121,5 41,6 Seoecr 87,8 140,8 216:5 106,5 1)9;4 451;1 159.2 041-0-404o1

einver Wry Tr:ailing

4nd keleillatlun

9,5

-35,4

-45,0

11,2

20,9

22,1

21,6

-11,1

,3 50,1

54,2

10,5

61,5

21,2

15.8

33.8

(lilt Miry ferpluyterit -17,1 22,2 11,1 - 1,0 31,4 140 10.1 41.0 001ay Inclement h

. !V .601111 ON I 1IonA)

14-15 $ 70 # $ 51 131 $ 51 $ 114 $ 109 194

16-11 120 103 251 101 264 420 204

111-19 14 - 265 229 161 618 588 466 -204 260 22 314 619 318 591

fercelliage,W4c!lipr 10 °Mf14141Y_°°11thJ21

C41egoly

Hal (lo Aggregate $) - roc-Forloyocot hoolotonce . Pteparatery Uprk Expgrlenve - (vSelinn1 - Snow' . 0nir ef if keel

Career Elliot traleleg

a04 Reiedla,100

rdi vil WI y *klieg'

1 is

91 91 42 231 211 231

=

I 1 I ) I/ 15 6 -8 1 I) 1 19 24 14

10 2 16 6 14 4 1 9 16 6 24 29 22

2 -20 9 9 -1 21 25 15

-61 66 41 -24 01 100 31 100 -40 52 30 -15 73 97 24 100
94

Inrreenu In Full-Year

Funr6 Fnilnymen( OWO)

tereenIsse DIstribotion of ,.. -.,...,.-. ,.........,,,_ Awe! u :0,14 Ityth

fruinnlornent Anslatoneu

frepornIury Vol leperienee

In-Selool Sumner Out-ol-Srhool 0ire ur Fairy TralnIna and lunedlerlin

Oirtin Kotty Kmplupenr

Porcgotogq_11101r1botloo of

#811!!81U1 00114Y!_bY

32 56

(5) (23)

(28) 23

19

71 19 40

35

262

96,9

461 63

(8) (25)

(29)

18

15

91

2240

30

321

-72,8n

46

(5) (21)

(18)

28

24

71 1940

35

261

17,)

31 56

(5) (23)

(28)

23

19

71 1940

35

162

103,6

52 62

(9) (75)

(20)

18

15

91

223910

331

52,0

32 50

(4) (22)

(21) 2532

11 18

38

31

241

200.1

31 56

(5) (23) (21)

23

19

11 19 40

35

262

217.7

11 60

(1) (24) (29)

18

IS

101

213910

331

119.2

61

52

(5)

12 (25)

2220

101

18

31

35

111

Pe

I4-14 lAdi

18-19 2041

Kllooquil Ourlot_Fhors .. _ .,.. _Fur lo-Schnul NA , .,:.__.
- 95 -

subparts, as well as through the design of activities

under these subparts. The allocation between activities

and their design must also consider the lessons from program experience. Implicit are considerations of targeting,

the proper level of Federal incentives, and the relative

balance between federally directed and local programs
- 96 -

Recommendations

Youth employment and employability development must be

high on the list of our Nation's priorities. The evidence is

compelling that the deficit of work and developmental opportunities has serious immediate as well as cumulative consequences. Their seriousness is compounded by the pervasive

inequality of opportunity which affects low-income, handicapped, and minority youth at each stage of development and

transition.

The youth employment initiatives of the last three years

have had a significant impact. The new work and training

opportunities created under the Youth Employment and Demonstration Projects Act of 1977 and the doubling of Job Corps

have benefitted over a million youth, have provided an increase

of nearly a quarter million annual average youth jobs and

employability development opportunities, and have almost

singlehandedly accounted for the employment growth for

minority teenagers. These initiatives--representing the

largest incremental effort on behalf of youth in history--have

demonstrated our Nation's capacity to address and redress the

youth employment problem in an effective manner. YEDPA was

an experimental program. It has been carefully structured and

studied to learn what works. Besides its immediate and sub- , stantial impacts on the quality of youth programs, it has

provided massive information which provides a foundation for

even more effective youth programs and policies for the 1980s.

It is now time to move forward boldly to apply these lessons

on a large scale in order to alleviate and eventually eliminate

the deficit of employment and employability development opportunities for our Nation's youth.

Whatever the exact shape of legislation, analysis of

youth labor market problems and program experience under YEDPA

as well as the longstanding summer program and Job Corps leads

to the following recommendations:

First, the delivery system for youth programs needs to

be restructured and reoriented to provide a multi-year sequencing of activities for disadvantaged youth which will

build the competencies required to compete successfully for

career employment upon reaching maturity. Performance requirements for participants and programs need to be strengthened

further. The activities must recognize and benchmark participant accomplishments. They must address each youth from a

multi-yr r perspective with cognizance of the developmental

process.

111
- 97 -

To achieve these ends, it is necessary to consolidate

all local CETA programs involved in preparatory work experience

and pre-employment assistance. The local consolidated career

preparatory system would provide individualized, sequenced

services needed to prepare youth for subsequent career training

or entry. Federal priorities in this local system would be

achieved through incentives rather than prescriptions. With

the consolidation of youth work experience and pre-employment

assistance, other local CETA efforts could focus on activities

expected to produce immediate employment and training gains;

these would serve young adults ready for career entry as well

as adults. Federally directed youth activities would focus

on career and training and career access--those more expensive

and targeted activities which will help young adults who would

not otherwise transition successfully into the primary labor

market. New procedures would be introduced for accessing

private sector jobs for disadvantaged young persons with no

previous private sector work experience and for more mature

and job ready young adults facing difficulties in competing

for career entry. Any new legislation amending the Comprehensive Employment and Training Act must also be structured

to better sort our priorities at the Federal level, to clarify

roles and responsibilities, and to pursue goals of YEDPA

such as school linkage and community-based group involvement

in more straightforward ways. These changes are achieved in

the Youth Act of 1980. While the details must still be resolved, the Youth Act constitutes a major restructuring and

reorientation of youth employment and employability development activities.

Second, the Administration has recommended a $1 billion

additional commitment to youth employment and training efforts.

This would result in an estimated $.635 billion additional

expenditure for youth, assuming that prime sponsors adjusted

their other CETA activities by transferring to the basic grants

the preparatory work experience and pre-employment assistance

under other titles, but providing young adults a fair share

of career entry training and career access with the resources

freed up by this transfer.

Third, the Department recommends a greater priority on

career entry remediation and career entry employment efforts.

The $1 billion increment, career entry emphasis option would

go far to fill the needs (as conservatively defined) for

career entry employment and career training and remediation.

Resources would be available for expanded pre-employment

assistance consistent with the sequencing and tracking notions

of the local preparatory program. This option would have a

substantial impact in filling pre-employment assistance needs.
- 98 -

Fourth, the changes and expansion should be implemented

through an orderly, multi-year process. The schedule of the

Youth Act makes sense, i.e., in fiscal 1981, current programs

would be continued. Discretionary YETP and YCCIP resources

would be utilized in fiscal 1981 to support the groundwork

at the local level for the implementation of the new Youth

Act approaches, and at the Federal level to develop largescale and interagency projects which would move to nationwide

Implementation during fiscal 1982.

These expanded and redirected efforts are feasible and

needed. They offer the promise of improving youth employment and training programs for the 1980s, as well as beginning

a process which could substantially eliminate the most serious

dimensions of the youth employment problem by the end of the

decade.

11
- 99 -

APPENDIX

n Graphic Analysis of

Youth Employment Problemsi

Context And The Parameters

Youth employment problems must be considered in context.

The teen years are a period of dramatic change, revolving

around the transition from school to work. There is not one

youth employment problem, but a vector of problems affecting

youth at different ages in this process. The problems vary

for every individual, but bear a statistical relationship to

basic factors such as race, sex, family income and education.

Chart 1. The Transition From School to Work:

At the ages of 14 and 15, almost all youth are enrolled

in school and only a fifth in the labor force. By age 20 and

21, less than a third are enrolled while four-fifths are in

the labor force.

Chart 2. Occupational Distribution of Full-Time and Part-Time

YEUEE7W6ikeis:

There are major changes between the teens and early

twenties in the types of jobs youth can find and hold. Teen

jobs are primarily part-time, as farmworkers, laborers, private

household workers and other service workers. By the early

twenties, employed youth are mostly full-time workers with

the occupational patterns of the adult labor force.

Chart 3. Increasin Earnin s:

With the shift towards a more "adult-like" occupational

distribution, hourly and annual earnings increase. Employed

14- and 15-year-olds tend to earn below the minimum wage in

uncovered occupations, while 20- to 21-year-olds earn wages

substantially higher than the minimum.

Chart 4. Employment Problems and. Race:

Black and Hispanic youth are burdened by higher unemployment rates and lower employment/population ratios. These

racial differentials decrease with age, but hourly earnings

differentials widen between the teens and twenties.

Chart 5. Problems and

Young males have greater probability of employment, lesser

chances of unemployment and higher earnings than females. The

earnings gap between males and females widens between the

114
100 -

Chart #1 THE TRANSITION FROM SCHOOL TO WORK

100

90-

80-

60-

40-

3

20-

10-

NOT IN THE LABOR FORCE

UNEMPLOYED

EMPLOYED

NOT IN THE LABOR FORCE

14-15 16-17 18-19

SOURCE: Bureau of Labor Statistics. Survey 0! School Age Youth, Oct. 1978

11

20-21
iI

I

Nu lll 0 ll111i 1111110111111

01111 ll 1 l 11 l Igggl ll ll 1111

1111110 ll 1 ll 1 1111 lllllll VI

g ll 1 ll 6101101 -11111110 lllll I

1111ll l II ll 1

1111 ll A l 1 ll PI -0 16 11 ll m181111

gal l 01 l llIII

Ogll ll 1 l lll I pg1110 llll l 1

' ll 1 ll 11111111

181.1816 l I ll 1 1$11 llll 11 ll 1 1,11111n111111

glOglill ll 010

. 8m1 l 10 l 8 l 1111 Ig11151111111

I ll I ll 0101101 gg lllll ll III

1111611 l 8 l 101 Ng llllll MOP

1111018821111 m186121 l 1 l III ll l 1 ll 111100

I IWO

11181 11116 WEI #

e

l dWiffigi@@. l I ll 181111 n lllll 111111

NO l II ll 11111

n ll 1 ll 111141 111111111111

101110

NO1011111111

ilIm ll 108 ll 1 1111 lllllll n n lllll IMMO

01111111 1111

ll 1 l 11118111 16111 l 815111 is l m ll mum

g l l I ll 111111 1111881 l 10 l I 1111 lllll808 ti

1 lllll 110.804

II l a ll umloi gg llllll 1111

1111111 l 1 ll 1

11111 l 111 l 11

la l 1 ll 116101 011011111111

FULL TIME

i 10 I

I

I I

ll I ll imossfolo11

im111 ll ll 111

11111 l Mi ll III

0 '

III 1= I

pi I I I S s, ; I

'EPP! l P ll pall IliiiliifihhI 56181m1o801 ummomii011

$011111111181 MI181011111

8 FULL TIME
102

Chart #3 INCREASING EARNINGS

Mean Hourly Wage of Employed Youth

May 1978

$3.81

14 -15 16-17 18-19 '20-21

SOURCE: Bureau of Labor Statistics.

11
Chart #4 EMPLOYMENT PROBLEMS AND RACE

1 20-24

IIIIIIIIIIIIIIIIIIIIIIIIIII 51-6

"Fie?"Al 39.4

1 24.4

11111111111111M11111111111111111111 71.1

ZZ/Z17/17/1X 64.6

WIWNW 53.5

IIIIIII 13.9 1111 7 9

/sr 20.6 10.8

21.7

1111111111111111111111111 $2.84 111111111111111111111111111111111111

/////,,x;$2.90 $3.64

%V IM $2.80 1/41 MAI M 4$

IIIII White Hispanic Black

i1
- 104 -

Chart #5 EMPLOYMENT PROBLEMS D SEX

Employment/

Population

Ratio

Unemployment

Rate

Median

Hourly

Wage

16-19

15.7

17,0

49.8

44.4

Male

$2.92

2.76

SOURCE: Bureau at Labor Statistics.

Female

20-24
- 105

teens and twenties as young adult females move into lower

paying employment patterns which may last a lifetime.

Chart 6. Youth Empleyment Problems and poverty

Unemployment among youth from poor families is more than

twice as high as unemployment among all youth. The relative

position fOr those of low socioeconomic background does not

improve with age.

Chart 7. Location and Youth Employment Problems:

Unemployment among all youth is highest in our Nation's

urban centers. Nonwhite youth are most affected. The

chances of employment for nonwhite central city youth are only

three-fifths those of white suburban youth.

Chart 8. EMployment/Fopulation Ratios The Multi le Factors:

Age, sex, race, school attendance, and school completion

status all affect the chances of employment. The probability

of working for any individual is determined by all these

variables.

Chart 9. Unemployment Rates - The Multi lgFactors :

Nonwhites not enrolled in school have the highest unemployment rates. The chances of unemployment among dropouts are

double those of graduates.
106 -

Chart #6 YOUTH EMPLOYMENT PROBLEMS AND POVERTY

Employment/Population Ratios Unemployment Rates

= All Youth A Low Income (less than 70% of BLS LLSIL)

SOURCE: Bureau of Labor Statistics, Current Population Survey, March 1978

12
107 -

Cher #7 LOCATION AND YOUTH EMPLOYMENT PROBLEMS

Ages 16 to 24 (1978 Average)

UNEMPLOYMENT RATES

CENTRAL CITY

SUBURBS

NONMETROPOLITAN

Percent VW 10 20 40

Ages 16 to 24 ( 978 Average)

CENTRAL CITY

SUBURBS

NONMETROPOLITAN

Percent,(11)

EMPLOYMENT-TO-POPULATION RATIOS

WHITE

10 0 a0 40 50

NON-WHITE go

0 70

SOURCE: Bureau of Labor Statistics.
108

Chart #8 EMPL YMENT/POPULATION RATIOS

The Multiple Factors

5.0

2.7

FEMALE

80.0

SOURCE: Bureau of Labor Statistics.

Survey of School Age Youth. Oct. 1978 42.0

124

880401. k CU_

25.8

7 2-.4
109

Chart #9 UNEMPLOYMENT RATES

The Multiple Factors

HITE

.0

.4

22$

7.0

14.4 244

SOURCE: Bureau of Labor Statistics.

Survey of School Age Youth, Oct 1978
- 110

II. YOUTH EMPLOYMENT PROBLEMS:

THE UNDERLYING TRENDS

Youth employment problems have intensified in both

absolute and relative terms over the last decade. Demographic

trends have been and will continue to be a major factor.

Racial differentials have increased. Educational gains have

been substantial but are now leveling off.

Youth Population a

The proportion of youth in the total working age population

has reached a peak and will decline during the 1980's.

Chart 11. Prections of Labor Force Com-osition:

The number of youth in the civilian labor force will soon

peak and decline thereafter. This factor should ease the

job competition among youth.

Chart 12. Growth of the Youth Population by Race:

Though the growth of the youth cohort has peaked, the nonwhite youth population has and will continue to grow faster

than white youth. Since the problems of nonwhites have grown

worse even in periods when the problems of whites have eased,

it is likely that the racial dimensions of youth employment

problems will be exacerbated.

Chart 13. Civilian Labor Force Particisation Rates of Teena

Through the late 1950's and early 1960's, the nonwhite

participation rate mirrored the rate of whites. Since then

the rate for whites has steadily increased while the rate for

nonwhites has fallen.

Chart 14. Trends in U

The unemployment gap between white and nonwhite teenagers

has widened dramatically since the late 1950's. The nonwhite

rate is highly volatile, reflecting the tenuous hold these

youth have on their jobs during economic downturns.

Chart 15. Changes in,Employment Probabilities:

The employment/population ratio for young nonwhite males

has decreased dramatically over the_past 20 years. This trend

has been accompanied. by a tremendous increase in the employment

population ratio of young females, especially for whites.
Chart 810 YOUTH POPULATION (16.24) AS A

PERCENT OF TOTAL WORKING AGE

POPULATION, 1960 TO 1978

SOURCE: Bureau of the Census

1 968 1970 1972 1974 1978 1978

Year

123
112

Chart #11 Projections of Labor Forc

1975-1990

TOTAL CIVILIAN LABOR

FORCE (MILLIONS) MEN (MILLIONS)

Composition

WOMEN (MILLIONS)

1975 1980 1986 1990 1975 1980 1985 1990 1976 1900 1998 1990

SOURCE: The Job Proble by Eli Ginzberg, Scientific American, Nov. 1977, Volume 237, Number 5, P. _O.
Chart #12 GROWTH OF YOUTH POPULATION BY RACE

AGE 16-241 1960 TO 1978

1960 1962

SOURCE Bureau of the Census

13o

1964 1966 1968 1970 1972 1974 1976 1978

131
- 114 -

Chart #1- CIVILIAN LABOR-FORCE PARTICIPATION RATES OF TEENAGERS

Age 16-19, by Race, 1954 to 1978

7

60

36

_---- =

White*

11111111111111.1a

Nonwhi

grk

- SOURCE: Bureau of Labor 9ta#i3tiea

1964 1968 1968 1970 1972 1974 1976 1978

Calendar Years
115 -

Chart #14 TRENDS IN UNEMPLOYMENT BY AGE & SEX,

1956-1978

Percent of civilian

labor force

0.1

441114146

4U

2

30

25

re

16

10

5

0

20-24 rears old

1954 1964 1965 1972 1976

SOURCE: Department of Labor, Employment and Training Report of the President 1979),

1971
116

Chart #15 CHANGES IN EMPLOYMENT PROBABILITIES

47.6

68.3

-12,2

+8.7

.4/IMF 58 1978

-.6

76.6 76.0

1958 1978

White Males

42.0

29.8

1958 1978

-10.3

71.4

61.1

16 -1

+13.7

48.7

35.0 +.7

22.8

1958 1978 1958

20-24

1958 1978

Nonwhite es

Jr-

+18.0

42.6

1958

60,1

23.5

197

+6.4

45.4

39.0 17:

978 1958 7

White Females Nonwhite Females

SOURCE: Bureau of Labor Statistics.

134
117

16. The Widenin Disparity in Hmp oyentjpo elation

Ratios:

The differentials in employment probability between white,

Hispanic and nonwhite youth are disturbing, but even more

critical are the widening of the differentials in the last

decade.

Chart 17. Trends in High School Dropout Hates:

More than one out of every three Hispanic youth is a high

school dropout. This has serious implications since educational

attainment is related to future employment and earnings. The

dropout trends are not very encouraging although there has been

a modest decline for black youth.

Chart 18. Trends

B ac

the Relative Educational Attainment of

Blacks are underrepresented in higher education and overrepresented in the ranks of high school noncompleters. However,

gains have been made since the 1950's, especially in higher

education.

13
118

Chart #16 THE WIDENING DISPARITY IN EMPLOYMENT/

POPULATION RATIOS

1954-1978

Whites 16-24

Blacks 16-24

0

.6C

C

eo

a .50 0

a.

co

.40

,Fre 0

E

LU

Whites 16-24

I 11 455 60

SOURCE: Bureau of Labor Statistics.

Hispanics 16-24

65 70 75
Chart *17

Percent of

119

TRENDS IN HIGH SCHOOL DROPOUT RATES

to 24-year-olds not enrolled in school and not high school graduates.

Hispanic Origin

1969 1971

Year

Male Female

1973 1975 1977

SOURCE: NATIONAL CENTER FOR EDUCATION STATISTICS, THE CONDITION OF EDUCATION 1979.

EDITION.

137
1 20

Chart #18 TRENDS IN THE RELATIVE EDUCATIONAL

ATTAINMENT OF BLACKS

70 h sch

ustlen

Co tege Graduate Rate

10

1950 1960

SOURCE. M =L Group tOr Policy Studies in Education Minor,ly Education t 9 Grounds, Gains. and Gaps, Volume I

1970 73 74 75 76 77
- 121 -

THE CONSEQUENCES OF YOUTH

EMPLOYMENT AND EDUCATION PROBLEMS

Youth employment and education problems have long-term

implications for labor market success as well as immediate

impact-8 on the well-being of youth and society.

Chart 19. More Education Reduces the Chances of Unemployment:

The diploma remains an important credential in the job

market. Youth with high educational attainment levels are

less likely to be unemployed than those with less education'

Chart 20. More Education Means More Income:

More educational attainment yields greater earnings

for youth. For both males and females, college graduates

command a salary which is about twice that of employed youth

with eight grades or less of schooling.

Chart 21. Those Who Work as Youth have Greater Employment

in the Future:

Recent studies have shown the positive effect that youth

work experience has on future employment chances. All else

being equal, both in-school and out-of-school teenagers who

work suffer less unemployment subsequently and have greater

labor force participation rates than their peers who do not

work.

Chart 22. Youth Work Experience Increases Future EarniaEL

For all groups except black males enrolled in school,

employment during the teen rears has a clearly positive

effect on future earnings. In-school and out-of-school black

females show remarkable gains from early work experience.

Chart 23. The Relationship_ Between Youth Crime and Joblessness:

The youth unemployment problem is more complex and

far-reaching than unemployment statistics can portray. There

are numerous social costs which can be associated with unemployment. The best available evidence suggests a statistically

significant correlation between relative youth unemployment

and youth arrests for a variety of criies.
Chart *19 MORE EDUCA

OF UN

110 xaMt

We*

v

SOURCE National Center for Education
122

ION REDUCES THE CHANCES

EMPLOYMENT 1978

08%

10 20

atistics, The Condition of Education, 1978

140
123

Chart :20 MORE EDUCATION MEANS MORE INCOME

MEDIAN ANNUAL INCOME IN CONSTANT (1976 -1977) DOLLARS

# *

ale

$12 .71W .1% 044. .4.4 .... ........ .. .4 . . ........ ..06 ... '*0.

1970 1972 1971 1976 Year

Years at setae compkted

12 Year .

Year16 years or more

10 11 pars

13 to 15

or less

SOURCE: National Center for Education Statistics, The Condition of Education, 1978
- 124 -

Chart #21 THOSE WHO WORK AS YOUTH

HAVE GREATER EMPLOYMENT IN THE FUTURE

Labor Force Status in Final Survey Year by Earlier School Enrollment and Labor Force Status

(percent distribution).

Status and age

per survey year

First survey year

(16 to 19 years of age):

In school

Employed

Unemployed

Out of labor force

Out of school

Employed

Unemployed

Out of labor force

Final survey year to 26 years of age)

Men

Out of

Employed Unemployed labor force

Women

Out of

Employed Unemployed labor force

AID W/ZrZ/Z/Z/ZAIIIIMI

411111 AllaW

WZ/ZZAIIIMIMNW

WZ/ZAIIMIS101AW

Employed Unemployed Out of Labor Force

SOURCE: Wayne Stevenson. -The Relationship Between Early Work Experience and Future Employability" in Adams &

Mangum, The I innenny Cusis of Youth Unemployment, 1978.
- 125 -

Chart #22 YOUTH WORK EXPERIENCE INCREASES

FUTURE EARNINGS

Adjusted' Mean Earnings by Prior Labor Force and School Enrollment Status for Aging Cohorts _ of Young Man and Young Women Who Were Out of School In Final Survey Year

d

First survey year

(16 to 19 years of age):

White In- school

Employed

Unemployed

OLF

_Black In-school

Employed

Unemployed

OLF

_White 04t of c_tio_O

Employed

Unemployed

OLF

Black Out of ~ycb

Employed

U nemployed

OLF

Final survey year (23 to 26 years of age)

Men Women

111111111111111

5979

6139

%AMU

6188

2399

$38§2_

756

ar" air air

3772 sail '" 2

912.0

SOURCE Wayne Stevenson, The Relationship Between Early Work Experience and Future Employability" in Adams &

Mangum, The Lingering Crisis of Youth Unemployment, 1978.

'Adjufdod to

in SK S&

r differences in age, ed training, sod° economic status. =or market knowledge, marital status, and (for males) living
126

Chart #23 THE RELATIONSHIP BETWEEN YOUTH CRIME

AND JOBLESSNESS

Percent Rise In Arrests for one percent Rise In Youth Unemployment Rate, Assuming Total

Unemployment Rate Does Not Change.

Prostitution

Forcible Ra

Auto Theft

Robbery

Criminal Homicide

Assault

1975

6.5

15-19 20-24

8

.1

SOURCE M. Harvey Brenner. "Estimating the Social Costs of Youth Employment Problems ", Prepared for the Vice

President's Task Force on Youth Employment.

1
- 127 -

IV. UNIVERSE OF NEED

The youth employment problem is serious in its dimensions,

consequences and trends. In order to design policies and

target resources, it is necessary to define and identify the

numbers affected. The "universe of need" may be defined in

a variety of ways; the more restrictive the definition, the

more serious the problems of those who are counted.

Chart 24. Jobs Needed to Achieve Employment/Population Ratio

Parity:

The differentials in employment chances can be translated

into jobs needed to equalize employment/population ratios.

Over 1 million obs would have to be created for black youth

just to bring then up to par with whites of the same age.

Chart 25. The Job Gap for Poor Youth:

Over one million jobs are needed for youth in poverty

areas to bring them up to par with white youth in nonpoverty

areas. Black and Hispanic youth need three-fourths of these

jobs.

Chart 26. The High School Diploma Gap:

Over 2 million youth, 18-to-19-year-olds, lack high

school diplomas. The problem is particularly severe for

Hispanic youth.

Chart 27. Alternative Universe Estimates:

A universe of need can be defined in terms of age,

educational status, socioeconomic status, race, length of

unemployment and/or combinations of two or more such characteristicS. The narrowest needs category would be long-term

unemploye4 dropout youth from poor families who are also

gibers of minority groups.
- 128 -

Char# #24 JOBS NEEDED TO ACHIEVE EMPLOYMENT/

POPULATION RATIO PARITY

1978

Total g -54

O .20

Whites 6-24

.46 .50 .60

Job Gap

Hispanics 16-24

Blacks 16-24

Total Job Gap

.20 .30 .40 .50

Employment/ Population Ratio

Employment/Population Ratios

Jobs necessary for parity with white youth

Jobs necessary for parity with total 25-54

Source. Unpublished estimates from the Bureau of the Census, consistent with

independent controls for current population surveys

"Employment and Unemployment During 1978," Bureau of Labor Statistics
- 129 - Chad #25 JOB GAPS FOR POOR YOUTH

1978

',..:Whites 16-24

n pon- verty areas

Whites 16 24

in -poverty areas

.60

Hispanics 16-24

verty areas

.20 SO .60

Employment/Population Ratio

Employment/Population Ratios

Jobs necessary for parity with white youth in

non-poverty areas

Sourca Buruau of Labor Statistics. 1978 Anplik1 klarages

4,
Chad #26 THE HIGH CH 991. DIPLOMA qtkp_

Total American Youth 1819 Diploma Gap

,1O jo

Mimics 1819

.40 ,50 .10- ,8

Lack CI, lomat

0 7 .

0

hlt 4

p4

riFerlige,,,

IS.Oraduata

to pop.ratio

Diploma! 0

Newt la!

100% qtr

Rail

1 , :', g ii:P. !. ;,,, .t t

, ..'' , ,..1.,, o,ivq'f"7 l--

.1 , 1-,, - .,).. ",

, . :_.,

, ,-- "':."J'!'""2",'"', ',1,',..'''''''''.."."-L-t''"I'4"--.4.42'''''''-6.1:-'4'.'.-.°. 4'...1,6-4''.-...Ft: '.° i'..0,o

: - Source: Based on 1971 dropout rates for:18=19'year olds and t819 ,yeaf old enrolirpint dita.frem 197Ei .: ,'' It :,,..e.:,,,,.-.;.:.,

, L

"School EnrollmentSocial and Economic Characteristics of 'Students!' Bureau of C.erisui-1 ; :;.:

=
- 131 -

Chart #27 ALTERNATIVE UNIVERSE ESTIMATES

Numbers in 000's

Number Unemployed

Non White

Hispanic

Number Unemployed

(less than 70%)*

Non White

Hispanic

Number Unemployed

Dropouts

Number Unemployed Dropouts (less than 70%

Non White

Hispanic

Number Unemployed

Non White

Hispanic

Number Unemployed

(less than 70%)

Non White

Hispanic

Number Unemployed

Dropouts

Number Unemployed Dropouts (less than 70

Non White

Hispanic

89 109

i6

171 34 g 68

36 32

311

64 64 128

19 16 35

Unemployed Youth, March 1978:

792

634

803

Those Who Were Unemployed 15 Weeks or More During 1977:

659

737

78 11

94. 178 272

291

6 63 99

11 23 34

9

786

20-24

SOURCE: Bureau of Labor Statistics. Current Population Survey, March 1978.

'Those Who Earn Less Than 70% of the BLS LLSIL

2867
132

Appendix 2

YOUTH ACT OP 1980

(Employment and Training Sections)

96TH CONGRESS

2D SESSION S. 2385

To extend the authorization of youth training and employment programs and

improve such programs, to extend the authorization of the private sector

initiative program, to authorize intensive and remedial education programs

for youths, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MARCH 5 (legislative day. JANAJARY 3), 1980

Mr. WILLIAMS (for himself, Mr. PELL, and Mr. RANDOLPH) introduced the

following bill; which was read twice and referred to the Committee on Labor

and Human Resources

A BILL

To extend the authorization of youth training and employment

programs and improve such programs, to extend the authorization of the private sector initiative program, to authorize

intensive and remedial education programs for youths, and

for other purposes.

Be it enacted by the Senate and House of Representa2 lives of the United States of America in congress assembled,

3 That this Act may be cited as the "Youth Act of 1980".
- 133

1 TITLE IYOL TH TRAINING AND EMPLOYMENT

2 PROGRAMS

3 SHORT TITLE

4 SEC. 101. This title may be cited as the 'Youth Train5 ing and Employment Act of 1980".

6 STATEMENT OF PURPOSE

SEC. 102. It is the purpose of this title, in coordination

8 with the Youth Education and Training Act set forth in title

9 II of this Act, to increase the future employability of youths

10 most in need by increasing their basic educational compe11 tency and workplace skills through a carefully structured

12 combination of education, training, work experience, and re13 lated services. This title is designed to help achieve these

14 objectives through providing the optimum mix of services fo15 cused upon disadvantaged youths. Additional purposes of this

16 title include improving local accountability for program per17 formance, simplifying reporting, increasing local decision18 making on the mix and design of programs, providing extra

19 resources for distressed areas, providing incentives for pro20 moting special purposes of national concern, improving

21 access by youths to private sector employment, assisting in

29 improving staff and program capacity for those who provide

23 the services, and providing trustworthy job references for

24 participants.
134

1 APPROPRIATIONS AUTHORIZATIONS

2 SEC. 103. (a) Section 112(a)(4)(C) of the Comprehensive

3 Employment and Training Act is amended to read as follows:

4 "(C) There are authorized to be appropriated such

5 sums as may be necessary for the fiscal year 1981 and

6 for each of the three succeeding fiscal years to carry

out title N.-.

(b) Section 112(a)(7) of the Comprehensive Employment

9 and Training Act is amended by adding at the end thereof the

;ollowing new subparagraph:

IC) There are authorized to be appropriated such

sums as may be necessary for the fiscal years 1981

13 and 1982 to carry out title VII. . 14 REVISION OF TITLE IV A

15 Sec. 104. (a) Section 1 of the Comprehensive Employ16 meat and Training Act is amended by deleting from the table

1 of contents sections 401, 402, and sections 411-441 of part

18 A of title IV, and substituting in lieu thereof the following:

"Set. 401. Statement of purpose.

"Sec. 402. Participant eligibility for title IV programs.

"PART AYOUTH TRAINING AND EMPLOYMENT PROGR

-Sec. 405. Congressional findings and statement of purpose.

-Sec. 406. Funds available for each subpart.

'Subpart 1Basic Programs

"Sec. 411. Allocation of funds.

-Sec. 412. Prime sponsor basic programs

-Sec. 413. Equal chance supplements.

-Set . 414. Prime aponsur youth plans.

-See. 415. Review of youth plans by Secretary.
135

"Sec. 416. Benchmarks and performance =dards.

"Sec. 417. Youth opportunity councils.

"Sec. 418. Governor's special statewide youth services.

"Subpart 2Incentive Grants

"Sec. 421. Division of finds.

"Sec. 422. Special purpose incentive grants.

"Sec. 423. Education cooperation incentive grants.

"Subpart 3Secretary's Discretionary Programs

"Sec. 431. Developmental and demonstration programs.

"Sec. 432. Consultation by the Secretary.

"Sec. 433. TraininAg, technical assistance, and knowledge development and dissemination.

"Subpart 4General Provisions

"Sec. 441. Allowances."

1 (b) Section 1 of the Comprehensive Employment and

2 Training Act is further amended by deleting from the table of

3 contents sections 444-447 of part A of title IV and substitut4 ing in lieu thereof the following:

"Sec. 444. Special provisions.

"Sec. 445. Academic credit.

"Sec. 446. Relation to other provisions."

5 (c) Sections 401,402, and 411-439 of part A of title

6 of the Comprehensive Employ, ent and Training Act are

7 amended to read as follows:

8 "STATEMENT OF PURPOSE

9 "Sec. 401. It is the purpose of this title to provide

10 training and employment programs for eligible youths to

11 assist them in obtaining job opportunities and to improve

12 their opportunities for future employment and increased

13 earnings.

15
- 136 -

"PARTICIPANT ELIGIBILITY FOR TITLE IV PROGRAMS

2 SEC. 402. (a)(1) To be eligible for programs under part

3 A, a youth must be 16 to 21 years of age (inclusive), and

4 have a family income at or below 85 percent of the lower

5 living standard income level, except that (A) 10 percent of

6 each recipient's funds may be used for youths age 16 to 21

7 (inclusive) who do not meet such income requirement but

8 who otherwise demonstrate the need for such services, and

9 (B) youths shall be eligible who are age 16 to 21 ( inclusive)

10 and (i) who are economically disadvantaged as defined in sec11 tion 3(8) of this Act, or (ii) in accordance with standards pre -

12 scribed by the Secretary', who are handicapped individuals,

13 youths under the supervision or jurisdiction of the juvenile or

14 criminal justice system, pregnant teenagers or teenage moth15 ers, or youths attending target schools under the basic skills

16 program under the Youth Education and Training Act.

17 "(2) Youths otherwise eligible under paragraph (1) of

18 this subsection but 'who are age 14 and 15 (inclusive) may

19 receive counseling, occupational information, and other trap20 sition services either on an individual or group basis.

21 "(b) The Secretary shall issue regulations which, as a

22 condition of participation in programs under part A, shall re23 quire (1) a specific period of joblessness, during which a

24 youth must not have been employed prior to application for

25 the program, or (2) a specific initial period which shall be
137

6

_ unstipended, during which a participating youth may receive

2 only counseling, occupational information, career assessment,

3 job referrals, and other transitional services.

4 "(c) The Secretary shall, by regulation, assure that programs under part A will give priority to youths who are ex6 periencing the most severe handicaps in obtaining employment, such as to those who lack a high school diploma or

8 other credentials, those who require substantial basic and re9 medial skill development, those out-of-school youths who

10 have been jobless for a long period of time, those who lack

11 equal opportunity due to sex, ethnic group, or handicap,

12 those who are veterans of military service who are facing

13 problems of readjustment to the civilian labor market, those

14 who are under the supervision or jurisdiction of the juvenile

or criminal justice system, those who are handicapped indi16 viduals, those who have dependents, or those who have

17 otherwise demonstrated special need, as determined by

1F the Secretary.

19 "(d) To be eligible for summer youth employment pro20 grams under part C, a youth must meet the eligibility re21 quirements in paragraph (1) of subsection (a) of this section,

22 except that otherwise eligible youths who are age 14 and 15

23 (inclusive) may participate if the program includes an educe24 tional component.
138 -

1 "PART A---YOUTI-I TRAINING AND EMPLOYMENT

2 PROGRAMS

3 "CONGRESSIONAL FINDINGS AND STATEMENT OF PURPOSE

4 "SEC. 405. (a) Congress finds and declares that:

5 "(1) Youth unemployment accounts for a major

6 share of aggregate unemployment and is a problem of

7 increasing concern.

8 "(2) Youth unem oyment problems are all the

9 more critical because they are inequitably distributed

10 among ethnic groups and economic levels.

11 "(3) The hardship related to youth joblessness is

12 cant.

13 "(4) Joblessness among youths hay significant

14 social costs and consequences.

15 "(5) Intensive remedial employment, training, em16 ployment- elated services, and supportive services, de17 signed to lead to career entry, provide social benefits

18 by enabling youths thereafter to apply their skills

19 throughout their careers.

20 "(6) Occupational stereotypes based on ethnic

21 group or sex can best be counteracted before career22 limiting patterns are set.

23 ) Efforts to effectively prepare disadvantaged

24 youths for unsubsidized employment in the private

25 sector must be correlated with the needs and require-
- 13 9 -

1 ments of private employers, who must be recognized as

2 partners in the planning and implementation of youth

3 training and employment programs.

4 "(b) Congress further finds and declares that the prob5 lem of youth joblessness should be addressed not only with a

6 viev, toward addressing the immediate employment problems,

but more particularly in a developmental framework with a

8 view toward moving jobless youths step-by-step into long9 term productive careers in the public and private sectors of

10 the economy. Accordingly, training and employment pro11 grams for youths should be designed in a manner which par12 allels the natural development of youths as they progress

13 toward the adult world of work.

14 (c) It is therefore the purpose of this part to provide

15 support for youth training and employment programs, along

16 with ancillary employment-related services and supportive

17 services, which18 "(1) will develop the skills and competencies of

19 youths to enable them to obtain unsubsidized employ20 ment through a seq ace of activities that (A) provide

21 intensive remedial education and basic skills training

22 needed for entry into the world of work; (B) develop

23 the skills and ability, to perform competently in entry

24 level work; (C) provide an awareness of, and introdue25 tion to, the world of work; and al) provide the ad5
140 -

vanced skills, training, and job search assistance

2 needed by older youths seeking career emplo3Tnent;

3 "(2) provide for assessment of each youth to de4 termine his or her need for employability development;

5 for employment and other services to be afforded to

6 such youths in accordance with such assessed needs;

7 and for employ nent-related competencies gained by

8 such youths to be documented and recognized in ac9 cordance with standards developed in the community;

10 (3) provide for performance standards for prime

11 sponsors and service deliverers, and benchmarks for

12 youth participants;

13 "(4) provide for extensive coordination and coop14 eration in the planning and operation of the programs

15 with local educational agencies, especially with respect

16 to activities on behalf of in-school youths, and for the

17 involvement of the business community, labor organiza18 tions, and community-based organizations; and

19 "(5) assure to youths freedom from the limitations

20 of occupational stereotypes based on sex, ethnic group,

21 or handicap.

22 "FUNDS AVAILABLE FOR EACH SUBPART

23 "8Ec. 406. (a) From the sums available for this part,

24 the Secretary shall make available15J
- 141 -

1 "(1) not less than 68 percent thereof for purposes

2 of subpart 1 of this part; and

3 "(2) not less than 22 percent thereof for incentive

4 grants under subpart 2 of this part.

5 "(b) Not more than the lower of 10 percent of the funds

6 available for this part, or $150,000,000, shall be available for

7 Secretary's discretionary programs under subpart 3.

8 "Subpart 1Basic Programs

9 "ALLOCATION OF FUNDS

10 "SEC. 411. (a) From the amounts made available pursu11 ant to section 406(a)(1) for each fiscal year12 "(1) not less than 5 percent of the sums available

13 for this part shall be made available to Governors for

14 special statewide youth services, to be allocated among

15 the States in accordance with the factors set forth in

16 subsection (c) of this section;

17 "(2) not less than 2 percent of the sums available

18 for this part shall be made available for youth training

19 and employment programs operated by Native Ameri20 can sponsors qualified under section 302(c)(1), in ac21 cordance with regulations ~which the Secretary shall

22 prescribe; and

23 "(3) not less than 2 percent of the sums available

24 for this part shall be made available for training and

25 employment programs operated by sponsors qualified

163
- 142 -

1 under section 303 for ouths in migrant and seasonal

2 farmworker families, in accordance with regulations

3 which the Secretary shall prescribe.

4 "(b) The remaining amounts available pursuant to sec5 Lion 406(a)(1) for each fiscal year, which shall be not .less

6 than 59 percent of the sums available for this part, shall be

7 made available to prime sponsors for youth training and employment programs under this subpart, as follows:

9 "(1) one-half of 1 percent of the sums available

10 for this part shall be allocated in the aggregate for

11 Guam, the Virgin Islands, American Samoa, the

12 Northern Marianas, and the Trust Territory of the Pa13 cific Islands, in accordance with regulations which the

14 Secretary shall prescribe;

15 "(2) the remaining amounts shall be allocated

16 among States so that (A) three-fourths of such remain17 ing amounts shall be allocated as determined in accord18 ance with subsection (c) of this section, and (B) one19 fourth thereof shall be allocated as determined in ac20 cordance with subsection (d) of this section.

21 "(c)(1) Amounts to be allocated in accordance with this

22 subsection shall be allocated among States in such manner

23 that24 "(A) 37.5 percent thereof shall be allocated in ac25 cordance with the relative number of unemployed per61
143 -

1 sons within each State as compared to the total

2 number of unemployed persons in all States;

3 "(B) 37.5 percent thereof shall be allocated in ac4 cordance with the relative number of unemployed per5 sons residing in areas of substantial unemployment (as

6 defined in section 3(2)) within each State as compared

7 to the total number of unemployed persons residing in

8 all such-areas in all States; and

9 "(C) 25 percent thereof shall be allocated in ac10 cordance with the relative number of persons in farm11 lies with an annual income below the low-income level

12 (as defined in section 3(16)) within each State as corn13 pared to the total number of such persons in all States.

14 "(2) Such amounts as are required pursuant to subsec15 tion (b) of this section to be allocated among States in accord16 ance with paragraph (1) of this subsection shall be further

17 allocated by the Secretary among prime sponsor areas within

18 each State based upon the factors set forth in paragraph (1).

19 "(d) Amounts required by subsection (b)(2)(B) of this

20 section to be allocated under this subsection shall be allo21 cated as follows:

22 "(1) Puerto Rico, and each prime sponsor area

23 within Puerto Rico, shall receive such share of such

24 amounts as is equivalent to the comparable share of al25 locations under subsection (c).

16
144 -

1 "(2) The remaining amounts shall be allocated

2 among other States, and among prime sponsor areas

3 within each such State, in the following manner:

4 "(A) 50 percent thereof shall be allocated

among States, and prime sponsor areas within

6 each State, on the basis of the relative excess

7 number of unemployed individuals in each prime

8 sponsor area as compared to the total excess

9 number of unemployed individuals in all such

prime sponsor areas. For purposes of this subpar11 agraph, the term 'excess number of unemployed

12 individuals' means the number of unemployed in13 dividuals in excess of the ratio which the total

14 number of unemployed individuals in all States

15 bears to the total number of individuals in the

16 civilian labor force of all States. For purposes of

1 i this subparagraph, the number of unemployed in18 dividuals for States may be determined on the

19 basis of the number of unemployed youths when

20

21

29

23

24

25

satisfactory data are available on a three-year

basis.

"(B) 30 percent thereof shall be allocated

among States, and among prime sponsor areas

within each State, on the basis of the relative

excess number of low-income youths in each

6,)
- 145 -

14

1 prime sponsor area as compared to the total

2 excess number of low-income youths in all such

3 prime sponsor areas. For purposes of this subpar4 agraph, the term low-income youths' means

15 youths with family incomes at or below 70 per6 cent of the lower living standard income level (as

7 determined by the Secretary); and the term

8 'excess number of low-income youths' means the

9 number of low-income youths in excess of the

10 ratio which the total number of low-income

11 youths in all States bears to the total number of

12 youths in the population of all States. For pur13 poses of this subparagraph, the number of low14 income youths may be determined on the basis of

15 the number of individuals in low-income families,

16 except that the number of low-income youths may

17 be used where satisfactory data are available.

18 ) For purposes of this subsection, the term

r . 19 'youths' means individuals who are age 16 to 24 (in20 elusive), and the term 'States' means the fifty States

21 and the District of Columbia.

22 "PRIME SPONSOR BASIC PROGRAMS

23 "Sm. 412. (a) Prime sponsors shall provide employ24 ment opportunities, appropriate training, and employment
- 146 -

1 related and supportive services for eligible youths, including

2 but not limited to the following:

3 "(1) Preemployment assistance shall be provided

4 for youths who lack world-of-work skills needed to find

5 or successfully hold a job or to make career decisions.

6 Such assistance may include occupational testing and

7 counseling, occupational exploration, job search and job

8 referral assistance, and instruction in the demands of

9 the workplace. Such assistance shall be designed to

better prepare youths for entry into the labor market,

and for the transition from school to work, in order to

reduce the period of and increase the success of initial

13 job search, to improve performance in entry jobs, and

14 to improve career awareness and choice.

15 "(2) Productive basic work experience shall be

16 provided for youths with limited job experience and op17 tions. Such opportunities shall be provided through in18 school and summer work experience for students, and

19 full-time work experience for dropouts. Work experi

20 ence shall be closely linked to education, and shall be

21 designed to develop basic experience in holding, and

22 performing on, a job. Such opportunities shall empha23 size cice supervision and productive output in order to

24 contribute measurably to society through community

25 service and improvement.

1 6e)
- 147

1 "(3) Remedial education and training opportuni

2 ties shall be provided and shall be designed principally

3 for older out-of-school youths who lack occupational

4 skills or educational competencies to compete in the

.5 adult labor market, and who demonstrate the maturity

6 and understanding to successfully complete such activi7 ties. Such opportunities may be provided through resi8 dential and nonresidential vocational training and basic

9 education activities. Remedial services may include

10 such activities as literacy training and bilingual train11 ing to overcome language barriers to employment,

12 shall be of sufficient duration to assure substantive oc13 cupational skill or educational competency acquisition,

14 and shall be linked directly to the labor market to

15 assure subsequent application of acquired skills and

16 educational competencies. Remedial services shall be

17 designed to prepare such youths to enter the first step

18 of career ladders from which they might otherwise be

19 excluded.

20 "(4) Career ladder work opportunities shall be

21 provided to older youths leading to adult career oppor22 tunities. Such work shall be provided primarily in on23 the-job training in the private sector, and shall be in

24 jobs which foster transferable skills and emphasize

25 movement into permanent employment. Such work
148

1 shall be structured to maximize job-related training,

2 and shall be designed to provide youths, who have

3 completed basic work experience and remedial activi4 ties, vrith specific occupational competencies and access

5 to productive adult job opportunities.

6 (b) Work experience opportunities as descilbed in this

7 section may include but are not limited to the following:

8 "(1) youth conservation projects, such as park es9 tablishment and upgradiig; environmental quality con10 trol, including integrated pest management activities;

11 preservation of historic sites; maintenance of visitor

19 facilities; and conservation, maintenance, and restora13 tion of natural resources on publicly held lands;

14 ) youth community improvement projects, such

13 as neighborhood revitalization; neighborhood transport

16 tation services; rehabilitation or improvement of public

facilities; weatherization and basic repairs to homes oc1 8 cupied by low-income families; energy conservation ac19 tivities, intluding application of solar energy techniques

20 (especially those using materials available without cost

21 to the program); and removal of architectural barriers

22 to access to public facilities by handicapped persons;

23 "(3) community betterment activities, such as

24 work in education, health care, and crime prevention

9 3 and control; and
- 149

1 "(4) innovative cooperative education programs

2 for youths in secondary and postsecondary schools de3 signed to coordinate education programs with work in

4 the private sector.

5 "(c) Training activities may include, but are not limited

6 to, the following:

"(1) classroom training and remedial -ducation;

"(2) institutional skills training;

9 "(3) on-the-job training; and

10 "(4) assistance fri attaining certificates of high

11 school equivalency.

12 "(d) Supportive services and employment-related serv13 ices as described in this section may include, but are not

14 limited to, the following:

"(1) outreach, assessment, and orientation;

16 "(2) counseling, including occupational information

17 and career counseling free of occupational sex stereo18 typing based on sex, ethnic group, or handicap, and in19 eluding information on nontraditional jobs;

20 "(3) career guidance activities promoting ransi21 tion from education and training to work;

22 "(4) provision of information concerning the labor

23 market, and occupational, educational, and training

24 information;
150 -

1 "(5) services to help youths obtain and retain

2 employment;

3 "(6) supportive services (as defined in paragraph

4 26 of section 3 of this Act), such as child care and

5 transportation assistance;

6 "(7) job sampling, including occupational exploration in the public and private sectors;

8 "(8) job restructuring, including assistance to em9 ployers in developing job ladders or new job opportuni10 ties for youths;

11 "(9) community-based central intake and orma12 tion services for youths;

13 (10) job development, job referral and placement

14 assistance to secure unsubsidized employment opportu15 nities for youths, and referral to employability develop16 ment programs; and

17 "(11) programs and services to overcome s ereo18 typing based on sex, ethnic group, or handicap, with

19 respect to job development, referral, and placement.

20 "(d) Funds available for purposes of this subpart may be

21 used subject to the following conditions:

22 "(1) such funds shall be used for training and em23 ploy ment activities, but may not be used for standard

24 courses of instruction in the secondary schools of any

16
151 -

local educational agency which would otherwise

2 provided;

3 "(2) such funds may support programs operated

4 through service deliveries other than local educational

5 agencies, such as through community-based organiza6 tions and other nonprofit organizations, and through al7 ternative arrangements, which may include classroom

8 training leading toward a high school equivalency

9 certificate;

10 "(3) such funds may be used for adult basic edu11 cation programs or programs carried out through post12 secondary institutions, but no such program shall lead

13 toward a postsecondary degree except where the Sec14 retary may otherwise provide;

15 "(4) the prime sponsor shall provide assurances

16 that there will be an adequate number of supervisory

1- personnel on each work project and that supervisory

18 personnel are adequately trained in skills needed to

19 carry out the project and can instruct participating eli20 Bible youths in skills needed to carry out the project;

21 "(5) the prime sponsor may make reasonable pay22 anent for the acquisition or rental of such space, sup23 plies, materials, and equipment as determined to be

24

25

necessary

Secretary

in accordance with regulations

1

of the
- 152

1 "(e) Prime sponsors serving areas which include target

2 schoolS funded under the Youth Education and Training Act

3 shall make adequate part-time work experience opportunities

4 available for youths in such schools in conjunction with pro5 grams under that Act, pursuant to an agreement with the

6 local educational agency and in accordanc:e with regulations

7 issued by the Secretary of Labor in consultation with the

8 Secretary of Education.

9 "EQUAL CHANCE SUPPLEMENTS

10 "SEc. 413. Prime sponsors receiving equal chance sup11 plemental allocations in accordance with section 411(b)(2)(B)

12 shall primarily use such funds to serve youths residing in

13 communities and neighborhoods which have particularly

14 severe economic and social problems which generate multiple

15 obstacles to the 4nployment and employability development

16 of such youths, so as to help provide such youths an equal

17 chance in developing the same long-term employment poten18 tial as less disadvantaged youths. Such communities and

19 neighborhoods shall be designated by prime sponsors on the

20 basis of such factors as poverty, school dropout rates, lack of

21 employment opportunities, and other relevant factors.

22 "PRIME SPONSOR YOUTH PLANS

23 "SEc. 414. The Secretary shall provide financial assist24 ance under this part only to a prime sponsor submitting a

25 youth plan, as part of its comprehensive plan under section

1 71
- 153 -

1 103, which sets forth satisfactory provisions meeting the fol2 lowing conditions:

3 "(1) The skills and competencies of youths de4 signed to enable them to obtain unsubsidized employ5 rent shall be developed through a sequence of activi6 ties that (A) provide intensive remedial education and

7 basic skills training needed for entry into the world of

8 work; (13) develop the skills and ability to perform de9 pendably in entry level work: (C) provide an awareness

10 of and introduction to the world of work; and (D) pro11 vide advanced skills training and job search assistance

12 needed by older youths seeking employment.

13 "(2) Each youth shall be individually assessed

14 in planning his or her employability development.

15 Training and employment and other services shall be

16 afforded to such youths in accordance with such as17 sessed needs. An employability development plan shall

18 be developed for each participating youth cooperatively

19 between the youth and the program personnel, and, to

20 the maximum extent feasible, in coordination with

21 school personnel. The employability development plan

22 shall set forth for each participating youth a program

23 of assistance over specific periods of time throughout

24 the period of the youth's participation, such as remedi25 al education, work experience, employment-related and
- 154 -

1 supportive services, and career development, in accord2 ance with the youth's particular needs, and shall spec3 ify performance requirements for the youth and the ex4 pected outcomes.

5 "(3) An individual achievement record shall be es6 tablished and maintained for each participating youth

7 as a continuing record to document the needs and corn8 petencies, including skills, education, employment, and

9 training obtained by each youth. Such record shall be

10 maintained and periodically updated during the entire

11 period of the youth's participation in the program, and

12 shall, to the maximum extent feasible, be coordinated

13 with any school attended by the youth. Such record

14 shall be confidential and information therein shall be

15 available only to persons who require it as part of their

16 responsibilities in operating, administering, or evaluat17 ing programs under this part, except that such infor18 mation may be shared with employers, educators, and

19 others upon the specific authorization of the par20 ticipant.

21 "(4) Basic programs assisted under this subpart

22 shall emphasize efforts for out-of-school youth, and

23 programs for such youths shall include basic education

24 and basic skills developed cooperatively mith the local

25 educational agency.
- 155 -

1 "(5) Descriptions shall be provided of the eligible

2 youth population by sex and ethnic group, and of the

3 proposed level of activities for participants from these

4 significant segments of the eligible population.

5 "(6) Programs assisted under this part shall, to

6 the maximum extent feasible, coordinate services with

7 other youth programs and similar services offered by

8 local educational agencies, postsecondary institutions,

9 the State employment service, private industry coun10 cils, agencies assisting youths who are under the

11 supervision or jurisdiction of the juvenile or criminal

12 justice system, the apprenticeship system, community13 based organizations, businesses and labor organiza14 tions, and other agencies, and with activities conducted

15 under the Youth Education and Training Act, Career

16 Education Incentive Act, Vocational Education Act,

17 the Elementary and Secondary Education Act, and the

18. Juvenile Justice and Delinquency Prevention Act.

19 "(7) The youth plan, including the youth compo20 vents of the long-term master plan and the annual

21 plans, shall be developed with the assistance of, and

22 reviewed by, the youth opportunity council, and shall

23 be reviewed by the prime sponsor's planning council.

24 "(8) Such youth plan shall be developed in consul25 tation with, and reviewed by, the private industry
156

1 council o assure that training and employment pro2 grams are designed to lead to regular employment.

3 "(9) Appropriate steps shall be undertaken to de4 velop new job classifications, new occupations, and re5 structured jobs for youths.

6 "(10) Adequate provisions shall be set forth to

7 assure that, in order to participate in a youth training

8 and employment program, school-age youths shall be

required to participate in a suitable educational or

10 basic skills program or component, including where ap11 propriate an educational program leading to a high

12 school equivalency degree.

13 "(11) Efforts shall be undertaken to overcome sex

14 stereotyping and to develop careers in nontraditional

15 occupations.

16 "REVIEW OF YOUTH PLANS BY SECRETARY

17 "SEc. 415. The provisions of sections 102, 104, and

18 107 shall apply to all youth plans under this subpart.

19 "BENCHMARKS AND PERFORMANCE STANDARDS

20 "SEc. 416. (a) Each prime sponsor she obtain recom21 mendations from the youth opportunity council, prime spon22 sor's planning council, private industry council, educational

23 agencies, business, labor organizations, community-based or24 ganizations, and other community organizations in the development of benchmark standards to serve as indicators,. ac1
157 -

1 cepted in the community, of youth achievements needed to

2 obtain and retain jobs. Pursuant to basic criteria established

3 by the Secretary, prime sponsors shall develop and use, as

4 appropriate to individual needs, benchmarks which shall

Include:

6 "(A) a preemployment level indicating a basic

7 awareness of the world-of-work and occupational op8 tions and the development of job-seeking skills;

9 4(B) a demonstration of maturity through regular

10 attendance and diligent effort in work experience, edu11 cation, training, and other program activities;

12 IC) basic educational skills such as reading,

13 ing, computation, and speaking; and

14 (D) occupational competencies such as a particu1- lar job skill acquired through institutional or on-the-job

16 training.

17 "(b) Each sponsor may provide both monetary and non18 monetary incentives for good performance (including mone19 tar incentives authorized by section 441) and appropriate

20 assistance for youths unable to perform satisfactorily.

1 "(c) The Secretary shall establish prime sponsor per22 formance standards, and, in accordance with the Secretary's

23 regulations, each prime sponsor shall establish service deli94 verer performance standards suitable for the purposes of var25 ious programs carried out under this part, based on program

176
- 158 -

1 outcomes (for young men and young women in significant

2 segments of the eligible population) such as return to school,

3 job placement, job retention, job quality; program inputs such

4 as quality of worksite, quality of supervision, and the appro5 priateness of the placement; as Ns-el? as program management

6 criteria. Such performance standards shall be revised annu7 ally based on prime sponsor and service deliverer perform8 ance, emerging knowledge about youth labor market probf and the impact of t7.ining and employment programs

10 on the employment and earnings of participants. These

11 staLrdr shall be used in assessing prime sponsor and serv12 ice deliverer program performance as well as in reviewing

13 youth plans and service deliverer applications under this sub14 part, and in reviewing applications for incentive grants under

13 subpart 2.

16 "YOUTH OPPORTUNITY COUNCILS

17 "SEc. 417. (a) Each prime sponsor shall establish a

18 youth opportunit3.- council, which shall make recommendi19 tions to the prime sponsor, planning council, and the private

20 industry council with respect to the youth plan and program

1 operation, and shall review and make recommendations with

22 respect to the establishment and implementation of perform23 ance standards established under section 416.

24 "(b)(1) Each youth opportunity council established in

25 accordance with this section shall be constituted so that (A)

P'1

I
159 -

1 one-third of the members shall be representative of employ2 ment and training programs (including young men and

3 women who are eligible youths under this part), (B) one-third

4 of the membel:]. shall be representative of private sector pro5 grams (including business and labor), and (C) one-third of the

6 members shall be representative of education programs (in7 eluding secondary and postsecondary institutions).

8 "(2) In order to facilitate unified planning and review by

9 the youth opportunit council of youth programs under this

10 Act and under the Youth Education and Training Act, the

11 prime sponsor may enter into an agreement with a local educational agency, or the State educational agency where the

13 prime sponsor area includes areas served by more than one

14 local educational agency, providing that under subsection

15 (b)(1) the members described in clause (A) shall be named by

16 the prime sponsor, the members described in clause (B) shall

17 be named by the private industry council. and the members

18 described in clause (C) shall be named by the local

19 educational agency or by the State educational agency from

20 names submitted by more than one local educational agency.

21 "GOVERNOR'S SPECIAL STATEWIDE YOUTH SERVICES

22 "SEC. 418. The amount available lo the Governor of

23 each State under section 411(a)(1) shall be used in accord24 Ince with a special statewide youth services plan, approved

25 by the Secretary, for such purposes as-

-17r
160 -

1 1) providing financial assistance for training and

2 employment opportunities for youths who are under the

3 supervision of the State or other public authorities, or

4 who are under the supervision or jurisdiction of the juvenile or criminal justice system, or for whom State

6 services are otherwise appropriate;

) providing labor market and occupational in8 formation to prime sponsors and local educational

9 agencies;

10 "(3) providing for the establishment of cooperative

efforts between State and local institutions, including

(A/ occupational, career guidance, counseling, and

13 placement services for in-school and out-of-school

14 youths; and (Q) coordination of statewide activities car15 ried out under the Career Education Incentive Act;

16 "(4) providing financial assistance for expanded

1 4 and experimental programs in apprenticeship trades or

18 development of new apprenticeship arrangements,

19 concert with appropriate businesses and labor unions or

20 State apprenticeship councils;

21 3) carrying out special model training and em22 plovment programs, with particular emphasis on on23 the-job training in the private sector, through arrange24 rents between appropriate State agencies and prime

25 sponsors in the State, combinations of such prime

7f-3
161 -

1 sponsors, or service deliverers selected by such prime

2 sponsors; and

3 "(6) providing assistance to prime sponsors in de4 veloping programs to overcome stereotyping by sex,

5 ethnic group, or handicap in career counseling, job de6 velopment, job referral, and placement.

7 "Subpart 2Incentive Grants

"DIVISION OF FUNDS

9 "SEc. 421. Of the funds available for incentive grants

10 under this subpart, the Secretary shall make available not

11 less than 38 percent thereof to be used for education coopera12 tion incentive grants under section 423. The remair der may

13 be used for special purpose incentive grants under section

14 422.

15 "SPECIAL PURPOSE INCENTIVE GRANTS

16 "SEC. 422. (a) Out of the funds available for this sec17 tion, the Secretary shall set aside funds for various special

18 purposes designed to assist in meeting objectives of national

19 concern, including those set forth in subsection (e).

20 "(b) The Secretary may make special purpose incentive

21 grants availytble in accordance with this section to prime

22 sponsors, Governor's special statewide youth services under

23 section 418, Native American programs qualified under sec24 tion 302(c)(1), and migrant and seasonal farmworker pro25 grams qualified under section 303, but only if a matching
162 -

1 amount of funds, as specifically established by the Secretary,

2 is committed from their allocations under subpart 1 or other

3 provisions of this Act or from other funds. The Secretary

4 may require varying matching percentages for different spe5 cial purpose categories, but shall not require matching funds

6 greater than the funds provided under this section.

7 "(c) Preliminary apportionments for each such special

8 purpose shall be announced to prime sponsors and published

9 in the Federal Register on a timely basis along with a solici1 t iation for grant applications. The Secretary shall make avail11 able not less than 25 percent of the total funds under this

12 section in such manner that there will be apportioned to each

13 prime sponsor, as its share of such percentage of such funds,

14 not less than its equivalent 'share, if any, of allocations under

15 section 411(b)(2)(B). Final kip. irtionments shall be made at

16 the time financial assistance is awarded to applicants, but

17 neither the making of a final apportionment, the awarding of

18 financial assistance, nor the obligation of such funds, shall

19 preclude the Secretary from reapportioning or redistributing

20 the funds at the end of the grant period, or during the grant

21 period, if the Secretary determines that the program is being

22 operates improperly or ineffectively, or that the purposes of

23 this Act would be better served by apportioning or distribut24 ing such funds for other special purposes.
- 163 -

1 "(d) Special purpose incentive grants shall be awarded

2 only to applicants which

3 "(1) have submitted proposed programs which are

4 adequately designed to meet the special purposes for

5 which financial assistance is made available under this

6 section;

7 have demonstrated performance of satisfac8 tory quality in the past in carrying out programs under

9 this Act; and

10 "(3) have equitably provided services under this

11 Act to youths who are eligible under this part and to

12 young adults age 22 through 24 who are seeking to

13 enter working careers.

14 (e) Special purpose incentive grants may be made

15 available to assist in carrying out exemplary or innovative

16 programs through a variety of approaches, including but not

1i

18

19

20

21

22

23

24

25

ted to-

-(1) programs for youths needing special services,

such as youths with language barriers, Youths who are

handicapped individuals, youths who are pregnant

teenagers or teenage mothers, youths who are alcohol

or drug abusers, youths who are under the supervision

of the State or other public authorities, and youths

who are under the supervision or jurisdiction of the juvenile or criminal justice system;

is
- 164

1 "( programs to meet the differing needs of various geographical areas, -including (A) activities in rural

areas such as those coordinated with federally assisted

4 efforts for improving transportation to provide easier

access to better jobs, training youths for expanded e

6 ployrnent opportunities in economic development pro

ets and small businesses, and utilizing existing facilities as multipurpose training and employment centers;

9 and (B) activities in urban areas such as those provid10 g skills training to enable youths to obtain jobs

11 paying adequate wages to meet the higher cost

12 living in densely populated areas, and training programs to enable disadvantaged youths to participate in

employment initiatives in such areas as urban transportation and community development projects;

16 "(3) specific types of work projects, such as youth

17 co_ anon projects, and youth community improve18 meat projects, including the weatherization of homes

19 occupied by low income families;

20 "(4) special arrangements with various types of

1 service deliverers, such as community-based organiza29 tions, community development corporations, private

23 sector organizations and intermediaries, and labor

24 related organizations;

S
165

1 a variety of mechanisms and arrangements to

facilitate the employment of youths through private

sector organizations and intermediaries; and

4 arrangements with labor organizations to

enable youths to enter into apprenticeship training as

6 part of the employment assistance provided under this

section.

"EDUCATION COOPERATION INCENTIVE GRANTS

9 "SEc. 423. (a) The Secretary shall make education o10 operation incentive grants available to prime sponsors to

11 carry out programs developed on a cooperative basis with

12 local educational agencies in accordance with this section.

13 `(b) Funds available under this section shall be used to

14 cover part of the total costs of programs to be carried out

13 pursuant to agreements with local educational agencies. Such

16 funds may be used to supplement resources made available

by the prime sponsor from funds under subpart 1 or other

provisions of this Act or from other sources, which resources

e 19 shall be coordinated with commensurate resources provided

20 by the local educational agency, for the purpose of ensuring

21 integrated programs of work experience and educational

22 activities.

23 "(c) Education cooperation incentive grants may be

24 used for activities carried out under this section or to aug-
- 166 -

1 ment activities under subpart 1, including but not limited

2 to

3

4

5

6

"(1) training and employment activities, but such

funds shall not be used for standard courses of instruction in the secondary schools of any local educational

agency which would otherwise be provided;

7 "(2) programs carried out through service deli

8 erers other than local educational agencies, such as

9 through community-based organizations and other non10 profit organizations, and through alternative arrange11 meets, which may include classroom training leading

12 toward a high school equivalency certificate;

13 "(3) adult basic education programs or programs

14 carried out through postsecondary institutions, but no

15 such program shall lead toward a postsecondary degree

16 except where the Secretary may otherwise provide17 and

18 (4) occupational and career counseling, outreach,

19 occupational exploration, and on-the-job training.

20 "(d)(1) In order to assist prime spovsors in planning pro21 grams under this section, the Secretary shall make prelimi2') nary apportionments of the funds available for this section

23 among prime sponsors in the same manner as provided in

-24 section 411(b). Such preliminary apportionments shall be an-
157

1 nounced to prime sponsors and published in the Federal R eg2 ister on a timel- basis.

3 "(2) Final apportionments shall b_ e 'Lade upon approval

4 of programs under this section at the time financial assistance

5 is awarded to prime sponsors. The Secretary may reappor6 tion funds which are subsequently determined not to be

needed during such fiscal year or if the Secretary de

8 mines that the program is being operated improperly or

9 ineffectively

10 (e)(1) In L.,ing funds made available under this section,

11 prime sponsors shall give priority to programs designed to

12 encourage youths to remain in or resume attendance in sec13 ondary school or an educational program leading toward a

14 high school equivalency certificate, including but not limited

to the provision of part-time work during the school year and

16 full-time work during the summer months for such youths.

17 "(2) In using such portion of its apportionment under

18 this section as was apportioned in the same manner as pro19 vided for under section 411(b)(2)(B), a prime sponsor shall

20 give priority to providing financial support, together with

other funds nth may be made available by the prime spon22 sor under this part, for work experience and other training

23 and employment assistance to be provided for students at24 tending target schools designated under the Youth Education
168

and Training Act, consistent with the agreements with local

2 educational agencies required by subsection (0.

3 4(0 Programs under this section shall be carried out

4 pursuant to an agreement, which shall be reviewed by the

5 youth opportunity council, between the prime sponsor and

6 local educational agency or agencies serving areas within the

7 prime sponsor area. Each such agreement shall8 (1) provide that special efforts will be made to

provide work needed by eligible youths in order to

remain in or return to school or complete their

education;

"(2) assure that participating youths will be pro13 sided training or meaningful work experience, designed

14

13

18

to improve their abilities to make career decisions and

to provide them with basic work skills and educational

competencies needed for regular employment;

"(3) provide that job information, occupational

counseling, career guidance, and job referral and placement services will be made available to participating

youths; and

"(4) assure that work and training will be rele92 want to the educational and career is of participat23 ing youths and will be designed to lead to regular

24 employment.
- 169 -

1 "Subpart 3 Secretary's Discretionary Programs

"DEVELOPMENTAL AND DEMONSTRATION PROGRAMS

3 " "SEC. 431. (a) The Secretary is authorized, either d

4 re or by way of grant or other agreements, to make ar5 rangements with prime sponsors, public agencies, private or6 ganizations, and Federal departments and agencies, to carry

7 out innovative, experiinental, developmental, and demonstra8 tion program§ including new and more effective approaches

9 for dealing with the employment problems of youth_ and to

10 enable young men and women who are eligible to participate

11 in programs under this part to prepare for, enhance their

1_ prospects for, or secure employment in occupations through

which they may reasonably be expected to advance to pro14 ductive working lives.

15 'lb) Such programs ma include cooperative arrange16 merits with educational agencies, community-based organize17 community development corporations, private sector

18 organizations and intermediaries, labor-related organizations,

19 and nonprofit organizations to provide special programs and

20 services, including large-scale projects, for eligible youths,

21 such as work experience (described in section 412(a)(2)),

22 cupationpi counseling, and career guidance. Such programs

23 may also include making available occupational, educational,

24 and training information through career information systems.
- 170 -

1 "CONSULTATION BY THE SECRETARY

2 SEC. 432. In carrying out or supporting programs

3 under this subpart, the Secretary shall consult, as appropri4 ate, with the Secretary of Education, the Secretary of Corn5 merce, the Secretary of Health and Human Services, the

6 Secretary of Housing and Urban Development, the Secretary

7 of Agriculture, the Secretary of Energy, the Attorney Gener8 al, the Director of the Community Services Administration,

9 and the Director of the ACTION Agency.

10 "TRAINING, TECHNICAL ASSISTANCE, AND KNOWLEDGE

DEVELOPMENT AND DISSEMINATION

;EC. 433. The Secretary may use funds under this

13 subpart for activities involving staff training (including train14 ing and retraining of counselors and other youth program

15 personnel), technical assistance, and knowledge development

16 and dissemination. Such activities shall be planned and car17 vied out in. coordination with similar activities under title

18 III.'

19 SPECIAL LIMITATIONS AND PROVISIONS

20 SEC. 105. (a) Section 441 of the Comprehensive Erg

21 ployrnent and Training Act is amended to read as follow

22 "ALLOWANCES

23 " "SEC. 441. No basic hourly allowance shall be paid to

24 participating youths under the age of 18 for time spent in a

classroom or institutional training activity, except in spedial

183
171 -

1 circumstances as provided in regulations of the Secretary.

2 Such allowances may be provided to participating youths age

3 18 and older pursuant to regulations of the Secretary.

4 Allowances may be paid to cover documented costs of pro5 gram participation such as transportation for eligible youths.

6 Such youths may, at the discretion of the prime sponsor, rece ve monetary performance incentives as provided in regula8 tions of the Secretary.

9 (b) Paragraph (3)(D) of section 442 of such Act

10 amended by deleting the words "subparts 2 and 3" and sub11 stituting in lieu thereof the words "this part.".

12 (c) Section 444 of such Act is amended by13 (1) amending the heading to read "SPE iAL PRO14 visroNs";

15 (2) amending subsection to read as follows:

16 "SEc. 444. (a) The pro sions of section 121(i), relating

17 to time limitations with respect to work experience, shall not

18 be applicable, in whole or in part, to programs meeting such

19 requirements as the Secretary shall prescribe in regulations.

20 The Secretary, may provide, in such regulations, for appro21 priate time limitations based on such factors as the genuine

22 need to provide certain eligible youths, or particular cate23 gories of such youths, work experience to enable them to

24 become equipped for the world of work.

25 (3) deleting subsection (b); and
172

(4) redesgnating subsection (c) as subsection (b),

and in such subsection deleting the words "subparts 2

3 and 3" and substituting in lieu thereof "this part".

4 (d) Section 445 of such Act is amended to read as fol5 low s:

6 "ACADEMIC CREDIT

7 "Sec. 445. In carrying out this part, appropriate efforts

8 shall be mad'2 to encourage the granting by educational insti9 tutions or agencies of academic credit to eligible youths who

10 are in classroom or institutional training activities. The Seen retary shall cooperate with the Secretary of Education to

12 make suitable arrangements with appropriate State and local

13 educational officials whereby academic credit may also be

14 awarded, consistent with applicable State law, for competen15 cies derived from work experience and other appropriate ac16 tivities under ail_ part. . 17 (e) Section 446 of such Act is deleted, and the existing

18 section 447 is redesignated as section 446.

19 0 Section -483(a) of such Act is amended to read as

20 follows:

21 "SEC. 483. (a) In order to receive financial assistance

22 under this part, each prime sponsor shall include the summer

23 youth program component as part Jf the youth plan submit24 ted to the Secretary in accordance with section 414 of this

25 Act."

191
- 173

COMMITTEE ON VOUTH

2 SEC. 106. Section 503 of the Comprehensive Empl --

3 tent and Training Act is _mended by deleting the word

4 "and" at the end of paragraph (9); by deleting the period at

5 the end of paragraph (10) and substituting in lieu thereof a

6 semicolon followed by the word "and "; and by adding a new

7 paragraph (11) to read as follows:

8 "(11) establish a committee on youth to consider

9 the problems caused by youth unemployment, make

10 recommendations to enhance interagency coordination

11 of youth programs, and evaluate the effectiveness and

12 quality of training and employment policies and pro13 grams affecting youths, for the purpose of reporting

14 thereon to the Commission on Employment Poll

15 which shall provide its advice thereon to the Secretary

16 of Labor, the President, and the Congress.

17 REPORT

18 SEC. 107. (a) Section 127(j) of the Comprehensive E

19 -ployrnent and Training Act is amended to read as follows:

20 "(j) In the annual report required under subsection (a),

21 the Secretary shall report on the programs, activities, and

22 actions taken under title IV of this Act,

23 (b) Section 3(15)(B) of the Comprehensive Employment

24 and Training Act is amended by deleting the words "of sub25 part 3 ".
- 174

1 TECHNICAL AND CLARIFYING AMENDMENTS

SEC. 108. The Comprehensive Employment and Training Act is further amended as follows:

4 (a) The first sentence of section 302(c)(: )(A) is amended

5 by deleting all that appears after the -ord "body" through

6 the comma.

(b) Section 124(a) is amended by inserting the following

8 new paragraph after paragraph (4)

9 Participants may be provided allowances for

transportation and other expenses incurred in training

11 or employment."

12 (el The second sentence of section 106(b) is amended to

13 read as follows14 "The Secretary shall conduct such investigation and make a

determination regarding the truth of the allegation not later

16 than 120 days after receiving the complaint."

17 (d) Section 106(d)(2) is amended by deleting the words

18 "public service employment"; by deleting the words "section

19 121 (c)(2), (c)(3), (g)(1), section 122 (c), (e), or section

20 123(g)" and substituting in lieu thereof "this Act"; and by

21 deleting the words "such sections" both times they appear

22 and substituting in lieu thereof "this Act ".

23 (e) Section 107(a) is amended by deleting the word

24 "person" each of the three times it appears and substituting

in lieu thereof "party".
175

1 TECHNICAL CORRECTION

2 SEC. 109. Section 508(b)(3) of the Department of Edu3 cation Organization Act, Public Law 96-88, is amended by

4 deleting the words "section 302(c)" and substituting in lieu

5 thereof "section 3©3(c)"

6 REFERENCES TO DEPARTMENT OF EDUCATION

7 SEC. 110. (a) Wherever the terms "Secretary of Health,

8 Education, and Welfare" or "Department of Health, Educa9 tion, and Welfare" appear in sections 311(b), 457(c) and

10 46.2(b) of the Comprehensive Employment and Training Act,

11 they are amended to read "Secretary of Education" or De19 partment of Education", respectively.

13 (b) Section 305 of the Comprehensive Employment and

14 Training Act is amended by deleting the words "and the Sec15 retary of Health, Education, and Welfare" and the words

16 "Labor and Health, Education, and Welfare" here they

17 occur, and substituting in lieu thereof, respectively, the

18 words "the Secretary of Health and Human Sell es and the

19 Secretary of Education" and "Labor, Health and Human

20 Services, and Education".

21 (c) Section 505(b) of the Older Americans Act is

22 amended by deleting the words "Secretary of Health, Educa23 tion, and Welfare" and substituting in lieu thereof the words

24 "Secretary of Health and Human Services and the Secretary

25 of Education ".
176 -

TRANSITIONAL PROVISIONS

2 Section 111. (a) To the extent necessary to provide for

3 the orderly transition of youth training and employment pro4 grams in fiscal year 1981, the Secretary of Labor is author5 ized to provide financial assistance the same manner and

6 under the same conditions as provided under subparts 2 and

7 3 of part A and under part C of title IV of the Comprehen8 give Employment and Training Act, as in effect prior to the

9 enactment of the Youth Training and Employment Act of

10 1980, from funds appropriated to carry out title ry of the

11 Comprehensive Employment and Training Act as amended

12 by the Youth Training and Employment Act of 1980.

13 (b) The authority contained in this section shall not be

14 construed to postpone or impede, upon the enactment of this

15 Act, planning for and implementation of the amendments

16 made by this Act:

1 (c) The amendments made by this Act shall be effective

18 on October 1 1980, except that sections 108 through 110 of

19 this Act shall be effective upon enactment of this Act.
APPENDIX 3

IANAGEMENT INFO 3ATION SYSTE

The basic-goal:of the employment and training portions of the Youth

Act of 1980 is to assure that all young persons age 14-21 will have

available -.the ,basic and cumulative employment, career

exploration,. training and remedial education opportunities

which, combined with individual initiative, will provide

the fouhdation for productive work lives. The key tenets

ofYOIN are that young people have different needs which

mast -`be addressed inlividually, that those with greatest needs

shaUlo&reeelve the most assistance, that activities must be

sequenced:over the development and transition years, and

thatr.rthe acquisition and demonstrat'on of career competence

mu -be benchmarked for each individual. An underlying

assumption is that a Management Information System can be

crated -at the local level which will provide the foundation

for :.such an:approach.

For the local:preparatory system to operate effectively,

the_MIS must have the following features: (1) It must begin

with clear descriptors of activity clusters or service units

which are well defined and indicative of the actual services

being received by participants at a point or period of time,

with costs included to measure the intensity of services.

(2) Activities and outcomes must be recorded for each individual in ,a cumulative record. (3)The system must be able to

track individual status changes over time, entering

themrnto the individual records and cumulating them for all

participants to monitor and plan enrollments and flows. (4)

Federal reporting requirements must provide meaningful input

information about the intensity of services for different

groups of youth in need.

The MIS currently in place under CETA y_outh programs in

most prime sponsor areas meets none of these aims. A program such

as proposed by the Youth Act thercfore, anticipates substantial

changes and it must be demonstrated that such changes are

feasible and would improve upon the current system.

If the present CETA MIS were effectively fulfilling the

basic missions of providing information for better participant service, for prime sponsor management, and for Federal

needs, then it would take strong arguments to justify major

changes. The analyses of labor market and program experience,
- 178

which are the basis for the reorientations implemented under

the Youth Act, provide such arguments; the current CETA MIS was designed for a program system which does not effectively

serve youth. Beyond this, however, the current CETA MIS

is grossly deficient in meeting basic requirements even

for the youth delivery system now in place.

There have always been special problems in dealing with

youth participants and services under CETA MIS, and these

were compounded by the addition of two new local categorical

programs under YEDPA. The problem begins with the descriptors of activities; these are more meaningful for adult

than youth activities. "Work experience" usually means

35-40 hours of work when it is an activity for adults;

for youth it may mean 5 hours of employment weekly for

students but 35 hours for out-of-school youth. Classroom

training for adults usually implies full-time skill training; for youth, it may be world-of-work exposure several

hours a week in a school setting. Adults who are enrolled

are usually receiving a specific service; in youth programs,

they are much more frequently in "holding awaiting a linkage with another activity.

Because records are kept and reported separately for each

program as well as separately for activity levels, costs,_

and participant characteristics, rather than on an individualized basis which would combine all this information for

each participant, it is difficult to determine aggregate

service levels and expenditures for youth. Foi instance, it is

usual to talk abcut youth served under CETA by adding

enrollments in SYEP, YCCIP, YETP and the count reported

in Titles II.B., II.D., and VI. For instance, youth may

get work through YCCIP and enrichment under Title II.B.

The separate summer program has created problems

because many of the enrollees are transferred from the

comprehensive program during the summer months, some are

terminated and reenrolled, but the exact numbers are

unknown so there is double counting and sometimes triple

counting. A best guess is that the total of individuals

receiving youth services over a year is at least a third

less than the aggregate of the participant counts. Likewise, the ratio of average on-board strength to annual

participation is far lower for youth than adults. It isi

common to estimate expen&_tures under Title II.B.,

and VI by hluitiplying the youth share of participants

times expenditures. Yet because youth have a shorter stay, and

ae in less expensive components, the youth share of expenditures
- 179 -

under Title II.B. or N.D. and VI is far less than their

share of aggregate participants. However, it is impossible to determine at the Federal level and in most prime

sponsor areas the actual youth service levels and investments.

With these aggregate shortcomings, it is obviously difficult

to find out if- youth most in need are receiving more services.

For instance, it has been the practice in the past to "cream"

enrollees into public service employment, which is a high

cost activity, and to put less employable youth in employability

skills development which is a much lower cost activity. Characteristics and cost data are kept separately so this "creaming"

is not easily identified. The records also do not keep track

of individuals over time; although some tracking is now required by the service limits set in the CETA reauthorization,

costs are not included. There is no way to tell in most

prime sponsor areas what cumulative activities have occurred

for a particular individual or a set of individuals over the

years of development and transition, or whether those most

in need are receiving the most intensive cumulative services.

Lacking any longitudinal information on individuals--either

their previous labor market or program experiences--programs

must rely on entry status variables to determine needs.

"Past patterns are the best indicators cf real needs, but

each intake into a program tends to be a separate event

so that past history is not utilized. Certainly it is

not available for prescribing services. In fact, assessment tends to be repeated at each entry point without any

use of the information over time.

The MIS was designed as a way to measure program and prime

sponsor performance based on outcome or termination status

for participants. The information is dutifully gathered

and reported for youth programs. Unfortunately, the data

are almost meaningless.

In the summer program, for instance, 90 percent of participants return to school; only the 10 percent who do not

return to school are at risk" in the sense that the termination data say they either terminate positively or nonpositively. It is completely unclear how many are returning

to school who would not have done so without the pro_

gram; the nonpositive termination percentage is more than

coincidently similar to the proportion of dropouts who

enter the program.

Termination status alone tells little or nothing without

knowledge of what would have occurred without the intervention. Pre-/post-changes do not mean much for youth

because, first, there is a maturation process usually

manifested in increased earnings and stability of employment which occurs over any period of time, and second,
- 180 -

those who are unemployed are likely to become employed and

vice versa im the volatile youth period. Entry and exit

status comparisons for participants reflect the aging process while if participant changes are compared to those

for nonparticipants, the former tend to experience transitional problems in leaving programs just when the latter

are beginning to find jobs on their own. There is no way

to determine what the program's impact may be over the

short-term or longer-term without a clear sense of what

would have happened without the intervention. Yet the

sober truth is that i=t is extremely difficult to judge

impacts of short-term yolAth programs without random assignment control groups because of the variations in young people which cannot be picked up in demographic variables.

Even in these cases, the impadt can only be measured when

there are large sample sizes and carefully defined interventions. Trying to determine from termination status data

whether a single project or a pot-pourri of approaches and

client groups is effectively run is simply impossible based

on outcome data, at least when the intervention is short-term,

and most impacts have only a longer-term developmental payoff.

Although termination data for youth programs have little

reaL meaning, the use of this data to judge performance

creates some undesirable incentives besides a lot of needless paperwork. Intervention strategies which are least

risky or intensive and which have the highest likelihood

of placement outcomes will be emphasized whenever heavy

priority is placed on termination data to judge performance.

Youth most likely to have positive outcomes will be served.

The MIS was also designed to measure performance relative

to plan. Plans have little meaning relative to youth

actvities because the labor market information for planning

is entirely inadequate and because participant goals are

meaningless since participation can mean so many things.

Prime sponsors are allowed to deviate from plans by 15

percent and are relatively unchecked in seeking modification. Further, there is a lag of three months in reporting

data and another three months in analyzing and taking corrective action. Youth participation levels are seasonal,

so the meaning of any quarter's data are questionable. In

other words, the planning, modification, and enforcement

of plan procedures for which the MIS is designed have

little utility.

Added to these shortcomings, the CETA reporting and Management Information Systems are extremely cumbersome and complex

and grow more so each year. In Fiscal Year 1975, the CETA

Forms Preparation Handbook, which contained all of CETA's

193
- 181 -

grant application, recordkeeping, and reporting requirements,

was 176 pages long. The Fiscal Year 1980 Handbook contained

444 pages. The number of required reports has risen.

Further, the categorical programs for which the prime

sponsor must report have become more numerous. Currently,

a prime sponsor must submit the following reports for each of its categorical programs:

1. The Quarterly CETA Financial Status Report

2. The Quarterly CETA Program Status Summary

3. The Quarterly Summary of Participant Characteristics

4. The Annual CETA Program Activity Summary

5. The Annual Report of Detailed Characteristics

Thus, for each of its categorical programs, the prime sponsor must submit 14 reports. The prime sponsor has four major youth serving programs (Title II.B., YETP, YCCIP, and SYEP), and, therefore, 56 separate reports each year on its youth activities, in addition to four plans and numerous modification

A Redesi ned MIS

The MIS which is proposed for the Youth Act's basic local

employment and training program would radically change

and simplify the system currently in operation in order to

overcome its shortcomings and to meet the special needs of

an individualized, sequential approach.

There are several very basic differences. First and most

critical, the current system reports participant characteristics,

expenditures and activities separately for separate programs.

The Youth Act would consolidate the programs and would consolidate

the youth MIS. Second, the current MIS defines expenditure

and activity categories differently, so that it is not

possible to determine how much is expended for each activity,

whereas the new system would utilize one simplified set of

descriptors. Third, both expenditure and activity categories

are reported separately from participant characteristics under

the current system; under the new system these are all included

in the same record. Fourth, activities are now defined so

that a single individual may be in more than one activity at

a point in time and "double counted" whereas in the new

system, the categories are mutually exclusive. Fifth,

participant status under the current system does not mean

an individual is receiving services; many participants are in

"holding" of one sort or another whereas in the new system

"transition" is a separate category and it can be clearly
- 182 -

identified who is active. Sixth, the current system reports

on post-termination status for each categorical program; the

new system does not require reporting of termination_status_

Completion or noncompletion of units of service is noted in the

individual records, but these are for use in assessing individual progress only. In other words, the uroposed MIS redefines

activity descriptors. It individualizesrecords of activity.

It rationalizes the flow of individuals through the system over

e. It eliminates reporting of information which has no meaning.

Act ivi Descriptors

The nanagement information System would rest on a set of

activity descriptors which would be inclusive of all the

possible clusters of services an individual youth participant

might receive concurrently under CETA even if received

from more than ono delivery agent.

Activities are dot ned as both free standing activities - -as

work experience, on-the-job training or skill trainingLnd

combinations of interrelated activities --for instance, work

experience in combination with skill training, education or

employability skills development. These single or combined activities, labelled "units of service," are the basic building

blocks of the proposed MIS.

The units of service would be as follows:

Work experience:

(2) On -the -job training;

(3) Skill training;

(4) Education;

(53 Employability Skills Development (including vocational

exploration,-intensive job search assistance,

motivational training and the like);

(6) Supportive services only;

(7) Work experience and skill training;

8) Work experience and education;

(9) Wor'- experience and employability skills development,

(10) On-the-job training and skill training;

(11) On-the-job training and education;

(12) On-the-job training and employability skills development;

' AL (13) Skill training and education;
182 a. = (14) Skill training and employability skills development; anal

(15) Education and employability skills development.

These categories are inclusive of almost all service or activity combinations available under youth programs. There are two assumptions: First, supportive services, if provided in conjunction with another unit of service, would simply be counted as an expenditure under this unit of service rather than being rPcorded as a separate unit of service

expenditure. Limited services such as placement and counseling, if offered in conjunction with more substan- tive activities, would be counted with them. Individuals receiving limited services not in conjunction with substantive activities would simply be counted as a recipient without a great deal of detail about the type of service

or its duration, since, by definition, both would be limited to a narrow range and it would not he worthwhile

to record all the details for such a limited activity.

A youth's participation in a unit of service will vary in

duration and intensity depending on individual need. For

one youth, his or her involvement in a unit of service

might be remedial education and employability skills

development activity during the summer. For another outof-school youth, the work experience unit of service may involve 6 months of full-time activity. Investment

Agreements with each individual for each

unit of service will specify what activities are to be

provided, their expected duration, the hours per week

of activity and estimated cost, broken down by participant,support and program or activity expenditures. Cost

multipliers will be derived for each contract with service

deliverers based on annual service levels. At the end of

each year, in preparing the annual report on activities,

the current year's real costs will be substituted for the

estimates. The Investment Agreement will also specify

what outcomes are expected as a result of the youth's

participation in the program.

2. Individualized Records

Over the development and transition period, a youth may have

a number of interactions with YCOA, and in each case where

significant activities are prescribed and received an individualized Investment Agreement would be developed. These

Investment Agreements would be entered into the individual's

Career Development Record (CDR). The record would keep track

of active participants as well as completion and termination

from the units of service. At each Point of contact with

local preparatory system, and at regular intervals while receiving

services, a registrant's status would also be assessed and recorded,

including a retrospective of experience since the last contact
183 -

where there has been a hiatus. For instance, a summer job

applicant who had last received services during the previous

summer might be asked questions concerning accomplishments

in and out of school during the fall and winter. Psychometric

and other tests might be given periodically to determine progress. The periodic followups of registrants should also be

used as a means to determine their views concerning services

received or not received, both within and outside CETA.

Finally, the competencies and credentials gained by registrants would be recorded in the CDR. Information on the CDR

could then serve as the basis for a resume or to provide

proof to employers of individual accomplishment.

3. Status Cate ories for Individuals

Once a CDR is created for an individual, it must be continuously updated at each point of entry or exit from units of

service and at each competency attainment point. The status

categories for individuals under the new system would be

as follows:

lesi,trants would include all persons under age 22 who had

applied for services and for whom a CDR hm.1 !:)een developed. The initial registrants would be assessed for

eligibility and needs, and all registrants would be periodically reassessed; they would be classified based on these

assessments and reassessments in one of two categories:

Limited Services Registrants would be those with

ai y income a ove the Bureau of Labor Statistics

Lower Living Standard income Level. They would be

eligible to receive individualized limited services.

Individualized limited services are low cost, short

duration, referral-type services available to

youth, regardless of economic status. An example

would be a several week nonstipended job search

assistance class after school.

Comprehensive_Services Registrants are all those from

families with incoMe6beloW the BLS Lower Living

Standard. They are eligible for all preparatory services based

on assessments of need and previous experiences.

The registrant who is counted in the limited or comprehensive

services eligible category at a point in time is one who is

eligible for services but is not scheduled or receiving them.

If scheduled for or receiving services, then he or she enters

one of six other status categories:

Transition. Transition is the registrant category

for COMprehensive Services Registrants whose investment

Agreement calls for participation in a unit of service

within 30 days as well as those youth who have completed

or terminated from a unit of service in the last 30
- 184 -

days. During the transition period, CDR and Investment Agreements should be updated and revised as

necessary, and limited services such as orientation,

placement and counseling should be offered.

Limited. Services Reci-Tents. This category includes

gout o are actively participatina in low cost

service such as limited duration job search assistance.

Basic_Activity Participant. This category is for income

-eligibI4-Youtn-wno are-aCtive in a unit of service.

The general progress of a participant is subject

to a status check at least once every 30 days.

Related Activit participant. This category covers

youth who are referred to and participate in a career

preparatory activity not funded by the Youth Act but utilizing

Investment Agreements and integrated into the CDR

system. This might include, for instance, vocational

education where an agreement has been reached between

the prime sponsor and the schools to coordinate

activities fully.

Inactive. This is the registrant category for

youth who have moved from the prime sponsor area,

entered the military, declared they are not interested

in YCOA services or cannot be located after a reasonable period of time. No followup is required on

these youth.

Career Entry Employment and Training. This category

is for youth who, after demonStratfHg the maturity

for career entry or for intensive remedial training

leading to a career, are enrolled in a CETA

D, or VI career entry employment.or training.

opportunity or the Job Corps, In other words, he orO

she has left the local preparatory system and has

moved into a career entry activity,: if he or she

fails in this activity, there might be additional

services under the basic local Youth Act program, the

system would be ready to provide further assistance

for those not yet ready to compete successfully in the

career labor market.

4. The Flow of individuals ThrolIgh_the System

The possible changes in status which registrants may have

can be shown by means of a diagram. The eight different

statuses are represented the diagram by circled numbers

according to the following key:

2 0
- 1.

(1) Limited Services Registrant

(2) Comprehensive Services Registrant

(3) Limited Services Recipient

(4) Transition

(5) Basic Activity Participant

(6) Related Activity Participant

(7) Career Entry Employment and Training

(8) Inactive

As an example of possible status changes, a young male age

14 applies to the prime sponsor. As part of a career needs assessment,

income eligibility is checked and the family income is found

to be above the BLS Lower Living Standard income Level. The

youth then becomes a "Limited ServicesPegistrant." He may

be enrolled in a 2-week summer job search assistance class

and then counseled about vocational offerings in the high

school. During time of the job search assistance activity,

he is counted as a "Limited Service Recipient" Under ideal

conditions, the information in the CDR assessment will be

shared with the school and he will be enrolled in a vocational course of his choice, perhaps even with an Investment Agreement written by the school where cooperative

arrangements have been made for compatability of career

development records. In this case, the youth would be A

"Related Activity Participant." Followup by the prime sponsor 6 months

later reveals family disruption, the absence of one breadwinner, and a reduction in family income to below the LLSIL.

At this point, the youth becomes a "Comprehensive Services

20-
186

Registrant." A subsequent check reveals he is still in

school and is doing fine in his vocational education

classes. In the spring, however, he comes to the prime

sponsor looking for summer work. An Investment Agreement

is then prepared which calls for a summer job related to

vocational training with the hours, weeks, pay rates and

estimated program costs all recorded for the unit of

service. Thirty days prior to the beginning of the

summer program the youth becomes a "Transition" registrant.

He receives orientation about the summer job and its requirements during this period. In June, he begins working

and becomes &basic Activity Participant.° At the end ot rne

summer, he returns to school and during the 30 day "transition"

period, a reassessment as part of transition services

suggests that no work experience would be appropriate

because he must concentrate on his studies. He reenters

the "Comprehensive Services Registrant" category and

contact is maintained on a regular basis.

At age 18, he decides to enlist and is accepted by the

Armed Forces. He becomes "Inactive" at this point. Unfortunately, he is terminated from the Armed Forces and

returns home without a job. His CDR is reactivated and

adjusted to meet his current needs. He again becomes a

"Comprehensive ServicesRegistrant." An Investment Agreement is drawn referring him to the Job Corps; he enters

the "Career Entry Employment and Training" category as

he enrolls in Job Corps.

All this occurs over 5 years. At each point of entrance

or exit from a category, a "status change notice" is filed

and entered in the CDR. The CDR is also adjusted at each

point to reflect new needs and changes in individual circumstances. Units of service completed under thebasic local

Youth Act program are recorded, as well as those achievements

in vocational education, the military and the Job Corps.

This system. would, then, provide information on the status

of all registrants at all times, and over time, the types

of activities and services and the costs. The record would

be useful for prescribing services and for documenting

achievements. Cumulation of CDR's would permit assessment

of what types of individuals were receiving which types

of services, and whether expenditures were being concentrated on those In greatest need. A YeeA participant count would

be a true measure of individuals being served and service

activities since an individual could be in only one service

unit at a point in time.
- 187 -

A Comparative Assessment

The effectiveness of an MIS must be judged in terms of

its usefulness in assisting services to individuals, its

effectiveness for prime sponsor management, its ability

to provide information -necessary for Federal oversight and

its cost and paperwork burden. By all these standards,

the proposed MIS would be a significant improvement

over the current system.

First, there would be a major reduction in paperwork for

Federal reporting. Instead of 56 separate reports, there

would be a single consolidated annual report matrixing

units of service by program characteristics and costs, plus

a very simple monthly statement on spending and enrollments.

The detailed information gathered annually for all prime

sponsors would be gathered monthly for a rotating stratified

sample of primes (approximately 15 percent) to yield the full

information about national patterns and trends. This type of

stratified assessment would be much simpler and yet more

informative than the current Continuous_tongitudinal Manpower

Survey because local records would be structured on an individualized basis presenting easy access, whereas currently the

information must be reconstructed at the local level under the

CMS in order to get a full picture of what is occurring in

terms of activities for individuals, and costs are not even assessed.

The reports have been redesigned to include only the information crucially required at the Federal level. The formats

for the single annual report and the monthly statements

are attached along with the quarterly and annual report formats

now required for each separate categorical program.

Program consolidation under the Youth Act reduces the number of

reports. Another major factor is the abandonment of the

plan/modification approach. The new Youth Act would not use plans as

enforcement documents. Prime sponsors may change them

as necessary. They are simply answerable at the end of

the grant for having delivered consistent with the alms

of the law.

Second, the new MIS requires fewer status change entries

into the system at the local level than the present system.

Currently an individual may be enrolled in two activities

at once and it is necessary to report entry and termination

for bot . The individual would only be in one unit cf

service under the proposed MIS. There would also be fewer

entries to the extent that sevices would not be arbitrarily

207
- 133 -

truncated because of shifts between program categories.

There are fewer activity descriptors in the proposed

system than under the present activity and expenditure

classifications. In other words, the new system does

not add to the data entries; it substantially reduces them. It

only changes the manner in which they are recorded.

Third, the annual report, as designed in the attachment,

would provide to the Federal Government as well as the

local council the information which it now lacks--which

individuals are getting which services and how much money

is being spent for such services.

Fourth, at the local level under proposed system there would be

records over time for specific individuals. By cumulation,

it would be possible to determine whether target groups of

youth most in need were receiving the continuity and intensity of service over time that they require. This

would be useful for local youth policymaking as well as

for national assessment.

Fifth, the proposed' system has much greater potential for evaluation purposes. It provides an internal longitudinal

record of individuals and their status changes over time.

It would be possible to identify like individuals who had

received different structured arrays of services to

determine the incremental impact of the service combinations. The recording of Benchmarks achieved, the use of

periodic aptitude tests and participant interviews,

would further enrich the potential for impact analysis

which is simply not possible from current MIS.

Sixth, the approval proposed under the Youth Act makes MIS into a

tool for service prescription. Where under the current system it isi

impossible to tell in most cases what an individual has previously

received and the experience (this must usually be determined from the responses of the participant which are

not very accurate as to type of program or outcome), the

CDR would provide the crucial background information needed

for individualized services and better sequencing of activities.

Seventh, the modified MIS permits targeting on those with greatest

need. Current procedures sometimes question applicants

about the past, but usually focus only on labor market

status on entry because there are no data on past experiences.

Analysis of the predictive power of various factors reveals

that for youth, the most important variables are those describing previous experience patterns. The .continuing

individualized record permits identification of those youth

with severe and continuing-difficulties so that more intensive 'services can be targeted on them.

20
189 -

Eighth, the Career Development Record can be used to document the achievements of an individual and to provide proof

to employers as to the abilities of disadvantaged youth.

Individualization also lets each youth move at his or her

own pace and to move forward step by step with recognition

of each achievement.

Finally, the proposed MIS has much greater synergy with computerization. The complexity of current data requirements

are forcing even small prime sponsors to adapt computer data

processing. But in most cases, the systems adopted to meet

Federal requirements realize only a small portion of the

potential of computers to provide immediate feedback of

records (the current MIS is not on an individualized basis),

to rearrange data elements into different configurations

for analysis purposes (the expenditures and activity data

are usually not recorded for individuals so that it is not

possible to analyze the data except in certain predetermined

ways), to deliver on-line standardized testing and assessment

(the current system requires individualized assessment but

does not link this to service prescription) and to deliver

basic educational and vocational instruction (individualized

services are usually restricted by categorical program

requirements).

The oroposed MIS system can fully exploit the multiple potential

of computers. Under the Consolidated YoUth Employment Progrem demonstration funded under YETP, which is testing many of

the components needed for the new approach, comprehensive

computerized systems are being developed to maximize the use of

commuters. For instance, in the Central Texas Manpower Consortium,

spanning a sizeable portion of Texas, terminals are being put

in place throughout the area, including the high schools, which

will offer programmed computer assisted instruction packages

with courses ranging from the most basic to college level

instruction. The same terminals can give a wide array of diagnostic

tests.- Scanners with "bubble sheet" entry are being used to

-transmit participant information, test scores, cost data,

benchmark accomplishment and much more. All these are linked

to a central computer unit to which memory for,storage can

be added as needed. It is a simple system--easy to operate

and with staff savings in instruction and testing. The

entire hardware and software package for this mid-sized

(population) prime sponsor is $250,000 and computerization

was necessary at any rate because of the new CETA requirements. The same system could have been employed under

existing programs, but the elements of the employment and

training portions of the Youth Act, which are also in

CYEP, permit .much greater adaptation. The individualized

instrumentation and testing possibilities will make the
- 190 -

Benchmark process more feasible, particularly for preemployment assistance and basic education skills. The

computer allows quick access to records which makes

individual prescription of services possible. It is

possible to handle eligibility determinations and to

assure that the services individuals have previously

received and the outcomes are fully considered.

In all these ways the proposed system is a significant improvement

over current MIS. For almost every use, it has greater

potential. Although transition to any new system will be

difficult, it is necessary under any circumstances to i

substantially !codify the current system simply because

it is inadequate. The design of the consolidated basic program

provides the opportunity to go much furthers ,The proposed MIS

while a significant simplification:of what now exists, would

yield much more usable information for service deliverers,

prime sponsor managers, Federal monitors and evaluators,
ps. fltrAENT Or, 1.4p01 I gipIspn ui 71114141Admillwillos

PROPOSEDANNUAL PROGRAM SUMMARY

I, I AU MU? I'

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EXPENDITURES AND UNITS OF SERVICE

2. 1101111114. ripluia

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4, UAL PLAN NO

AFL WO

TOTAL Mils

aa.

NMI 14.11 20.21

t101141. 85 to ;iq

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PROPOSE!) ONTILM. PROGRAM STATUS SUMMARY

1. ANNUAL PLAN N13 DER

2.. REPORTING. PERIOD 040-, Dm7.

Yaw)

RIM A CI A i C

CURRENT R.T ATE

MI

Total Registrants

IL I3 tad Registrants

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C. Transition

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. _

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miI on h This Year
U.R. 01,PARTG1NT OF LABOR

10Tnitn1 Kid tit MA; Inkoillao

ANNUAL CETA PROGRAM

ACTIVITY SUMMARY

FOR REGIONAL OFFICE U51 ONLY

CONTRACT Kr

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QUARTERLY SUMMARY OF PARTICIPANT

CHARACTERISTICS

P NAME AND ADDR

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A. CHARACTERISTICS

TOTAL

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Total Rdwiptod Public Attattioot

GMS.Pov. Lew or 1Q% Or sit LLSIL

56% Oro 100% of LLSIL

LLSIL

ECONOMICALLY DISADVANTAGED

Single Pment

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LIMITED ENGLISH SPEAKING ABILITY

MIGRANT OR SEASONAL FARM FAMILY ME

23 -A V E3

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U N ENTERING

. SIGNATURE AND TITLE 4. DATE TELEPHONE N

ETA 51 d IAPt 197:4
196

ONE Addroval No. Ria

U.S. DEPARTMENT OF LABOR

Emmarnwat and Trunins Admitu Tuition

CETA PROGRAM

STARIS SUMMARY

a. PRIME SPONSOR'S NAME AND ADDRESS b. GRANT NUMBER

. REPORTING PERIOD

From I To

FOR REGIONAL OFFICE USE ONLY TYPE OF PROGRAM

0 II -0/0 0 II . 0 0 VI

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I. PARTICIPATION AND TERMINATION SUMMARY 1 2 3 ACTUAL PLAN % of PLAN F A. TOTAL PARTICIPANTS

1. Naw Ratlicigants

2 . Sutt

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is. TOTAL. TERMINATIONS

:.Intuo. EmpIOVITe n

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(2I °tn., indentet 66

Tranttara to othar Su par x 71 3. Adddlonal Poiit!Yi Tarminat10114 76 n tOJContinua Full-7lona School FF1 I OMR 7artorn

C. TOTAL c uRRENT PARTICIPANTS a ) A+ElIwl Nor. E I I At

IL CIAL CATEGORIES - - "12

TA

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TITLE ti - C,

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T ER ACTIVITIES

indicate Gt or attls on attachments_ Describe their objectives and list milestones toward their schievern rlt Di Otative or natTative presentation.

Ia NAME AND l'7L OF AUTFA2P

V. cErrtFicATioN

P SIGNATURE IC DATE 1210.. Lim V.

21D

A 1 134 liar,
UJ OtPARTMtP0 OF LAQOP CETA

fflolopmem 111,1 Tuilniri Aelm1P1014110fl

FOR REGIONAL OFFICE

USE ItEr. ONLY

7. STATUS OF FUNDS

FINANCIAL STATUI REPORT

CONTRACT ogV

MEMO

ToUt Fd,,jI 9444 SW! Vnliqui1101

Nt QUO leng

Ubj. Prol, No,

me A /Ito,

1, GRANTEE'S NAME AND ADDRESS 2: FED. AGENCY J. FEDERAL GRANT NO, OFFewr MM

UUIRN

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I. INDIRECT EXPENSE Amyx. T999 of N" 9991

b. Pm

4, TWO Amount

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if, CERT/FiCATiON CERI1Fr that Or Mr lio0 of my knowloOR nM holiFf Mot air

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TITLE

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ILJA 2i0 19/II

221
- 198 -

APPENDIX 4

DESIGN OF PROGRAM ELEMENT S

The employment and training title of the Youth Act of 1980

introduces some new components and significantly modifies

many existing approaches under CETA youth programs. It is

impossible and unnecessary at this point in time, to fully

design and analyze all these components and approaches, but

it is worthwhile tofleshout some of the details to get a

better sense of what is intended and the feasibility. The

proposed MIS was described separately because of its underlying importance in achieveing the goals of the Act. The

following sections briefly describe the competency benchmarking system, the incentive grants and equal chance supplements,

large-scale Federal projects, interagency activities and new

allowance approaches.

Eenchmarking

The notion of benchmarking competency acquisition makes

obvious sense in order to use CETA programs as a proving

ground for disadvantaged youth, to document their abilities,

and attainments, and to provide reference points for the

prescription and sequencing of services for individuals.

Four sets of competency benchmarks are stipulated in the

legislation: (1) benchmarks of basic employability skills

or world-of-work awareness; (2) benchmarks of work maturity

documenting the ability to show up for work on time and

maintain continuity of employment; (3) benchmarks of the

educational competencies needed to learn on the job; and

(4) benchmarks of vocational competencies. The benchmark

standards would be determined after extensive interaction

with the community to determine performance expectations

and requirements. The standards would be established and

maintained external to program components in the sense

that competencies would be objectively measured. Completion of a unit of service might be one way to document competency

attainment, but only with monitoring to assure that standards

were being maintained for completion. Youth who had not

previously participated could also be assessed relative to

these benchmarks. In other words, they would be measurements

of the ability to handle certain tasks, act in certain ways,

and perform certain functions rather than simply documentation

of participation. For instance, three youth enrolled in

auto mechanics training might all "complete' a s -month training course. One might learn to change oil and tires and to

check batteries; another might learn engine tune-up and

maintenance; the third might go so far as to understand

hydraulic systems and transmissions. They would have three

different levels of competence even though all had "completed"
- 199 -

a 9-month training program. One of these youth might have

learned the basic skills at home so that these could be

benchrnarked before participation and training could begin

at a more advanced level with the "investment agreement"

which would designate services to be received and requirements of participation calling for the completion of a concentrated course in transmission repair; in other words,

competencies gained elsewhere could be benchmarked and

benchmarks would be used as a means for the individualization of services.

While this makes a great deal of sense, there are questions

how benchmark standards could be established, whether they

could be maintained, and about the ramifications of such

standards.

1. Benchmark Standards

The basic employability skills benchmarks might include

a combination of experiences, tested knowledge, and

perhaps simulated activity. First, there are several

tests of world-of-work awareness and coping skills that

have been developed and applied extensively in the last

decade. These have been utilized under the YEDPA knowledge development activities and the results will provide

validation and the basis for further refinement. The

experience desired might be an active job-search effort

or participation in a job-search asi.,,,Aance and labor

market information activity for a period of time.

Finally, the simulated activity might_ include mock

interviews using employers.

The work maturity benchmark could be documented by a

period of continuous employment with reasonable attendance and effort in either the private or public sector.

There might be separate standards for in-school and outof-school youth. The trick would be to assure that the

work experience indeed required and maintained strict standards

of performance. A recommendation or demonstration from the

employer or supervisor would be secured. In some cases,

this would involve retrospective interviews. For instance,

the "maturity" standard for an out-of-school youth might

be 6-months of work, with 90 percent attendance, 5 percent

tardiness, and adequate work effort as documented by the

supervisor. If the youth held a private sector job, the

information could be secured by follow up on the job and

interviews with the supervisor. In a public program, it

would require monitoring to assure that strict standards

were being enforced.
- 200-

There is an extensive body of literature and experience with

vocational competency benchmarks. Competency - based

vocational education programs are used in numerous States.

Oregon, Washington, Ohio, Florida, Delaware and Minnesota

are among those which have successful programsat the State

level, in their universities, and in the vocational and

general education systems. Job Corps has 15 years of

experience and refinement in the use of Training Achievement

Records (TAR'S) for its training areas which include most of

those likely to localize programs as well. A model TAR is

attached. These measure individual accomplishment and could

easily be converted into standards which could be adopted

locally. The vocational education community at the Federal,

State and local levels could make an enormous contribution

to the competency measures and skill definitions, while the

employers would be actively involved in setting the standards,

i.e., what levels of competencies were needed for which jobs.

Perhaps the most controversial area of bemchmarking relates

to educational competency testing and documentation. Over

40 States have adopted procedures for testing abilities

and standards for graduation from secondary school. The

GED is, in a sense, a developed and tested set of standards

concerning the competencies a person with a high school diploma should have The diploma itself is a credential documenting some competencies, depending on the standards maintained in the schools. Educational benchmarks should

include both credentials and competencies--i.e., they should document and encourage attainment of either the

GED or the diploma, but they should also document attainment and demonstration of certain reading and computation

skills. There might be several levels. For instance, i

Job Corps has an individualized, self-paced educational

program with a multitude of steps and levels. It has 15

years of experience with assessment of disadvantaged youth

relative to these levels, and their meaning in terms of

functional competence. These could be adopted by prime

sponsors, if desired: to assess abilities below the high

school level, Likewise, the competence tests used in the

schools have scalar outcomes and several standards might be

set indicating different levels of accomplishment, If prime

sponsors preferred not to deal with these issues, they

could simply rely on the CEO or the diploma. Where local

conditions permitted a more positive approach, there are

mechanisms which could be utilized.
Name SSN

Vocational Trade plumber...

Date Entered Training

DOT Code :3 1 -0 IngrUCtOr

Training Objectives

A. Saicty:

1.-Practice safety on thJ_ob

2, Know & use safe oractices in handlin: tools machiner

B. General:

. Know & understand ilumbin: terminolo

4. Use & maintain common hand tools

materials, fatings, grades & types of pi

6 Selects cast iron, g3lvanlzed pipe, tc,_ for roughing

Identif

7. Load ttu

.-----m,

C. Apply Drawing:

Know use of commun drawing instruments

equired materials tools --utpment

9. Use common measuring instrumeu

_ ID, Draw plumbing symbols

and tools

IL. Make diagrams, ketches, croquils using

U. Calvanized Piping:

12, Measure, cut, ream & thread different sires

13. Measure, cut, ream, thread

14, Make differunt installations

ymbols

install pipe at

15. Make bridle I s 16. Make installations using universal joint

17. Insiall drainage ustng_ threaded pieces

18, Make a tucker connection

1 9 . Conuct di ferent t p- of valves

L. Copper

20, Measure mark & cut cotter o oe 21, Make connections using soldering kit

Make connections using fittings & coupling23, Install a water meter

24. lake an installation for hut and cold water u

ouilment

intsh

Center

Performance

-ipe by hand

spcci measure lull"

11

_ nal 10111111.11

11111111.11011.11n

g oPPer '1`e _ 111111111.11111111111111

11111111111111111111111

11111111111111111_111i1

11111111111111.=

11111111.11

F. Cottrao

ZS. Sciectandryarning oakum & caulkini lead 'oints

. Measure and cut cast iron 'lie

vertical 6 ,orizunt

valvaniz.i, cast iron oints

Continued

_ hge.L_ot

U S: Copirlrool of Labv

ErPoymeil & 1a0V.: Air:ilstraihn

223

TRAINING ACHIEVEMENT RECORD ETA 6-147 (Jan, 1978)

"U
Vocational Trade Plat

Training Objectives

G. P.V

4

0.

Make build

It 1 len dra a

1 Us n -aafet measures C. PMeasure & cut P.V.0

3. MIke connections P

4. Pi=e re nets anon

Pre fare in a ati n

ease mut on e a e insta

B. Pre ere luta la

9,. Pre'are install

. Pre!are insta

Pre

P

43. ins

nate

in handlin hot oakum lead, pour a joint

.I.e

C. i.e using contact semen

& instal washroom lavatory

insta

& inato

n luta

1 kitchen

1 a 'rain

urin

on & install w

nn iota 1 a

anon 6 instal

lation

are installation

a 1 a shower

Concrete & Terracota

.natal

or dl erent ba

ink

ter cooler

ater ountain ide_-

bathtub

44. Di j2LeW12L1[i ing pipe

45. Cut to size terracota & concrete 47. m ake connections

t e ment

DOT Code 8q.381 ±13,L.

Performance Kn led MOM C

no MI Nil MO

MI

e installation tb the sewer line

J. Maintenance:

48. Re.a r wear b broken t R arts of bathtub

O. ke`air bidet .arts

5l. Repair water heater parts

52, Repair water closet 'arts

Re. 1r di

34. Re e wear broken

rent tv*es of valve farts

55. Reair urinal 6 a 56!, Repair kitchen sink part

Job Related Technical Knowled e;

7. Use nstructions

e 11111111

11111111111111111111

r.566Ar=066.6w..-6

111111.11111111111 MEM

11111111111111111101 EMI

u nished in written, ural, or sketched form

5 e arithmetic math as rsliaLtLILajn__

ILLETiL_,..._rerlortsusitilrocergrazierand trade languaPe

Page... of

Deporlf440t of Labor

EMBiliMeaf i3 Training aarninierstion

TRAINING ACHIEVEMENT RECORD ETA (Jan. 19 '8)
Name Vocational Trade Plumber DOT Code 861.381430 _

Training Objectives Performance Knowledge

L, A titudea and Professional Ethics:

1 2 3 a b c

60. Maintains aor ,riat- iers nal h Ilene and piearance _

6 . Arrives at the 'ob on time and is there each da a- exiected

_

6 . Works coo. rativ 1 with fellow workers and treats otherease

63. Accetsconstrtivecritj.cismanslfollo%L___..4.....

64. Res.ects value of comian and ,ersonal 10 , and cares for it ir , 1 --__ -_ M. Additi onal Related Trainiw Ob-ectives Peculiar to This Center :

---V. . ---- _ __ Evaluation Code Key

Factors Scale Values Definition

Performance

1 ,- 2 I

3 _

Co do imole partn of the taskNeeds extremely close supervision

Can do molt part of thy taskNeeds close supervision

Can do all parts or a taskNeeds job entry supervision

theand

and

wai

Knowledge

dh -

r .=

Cdn idontily Nits, tooh, and underntand simplo Ws abut

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22

TRAINING ACHIEVEMENT RECORD ETA 5-147 (Jan. 1978)

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23o
- 204 -

2. Maintenance of Benchmarks

Grade inflation was one reason competncy testing was put

into secondary schools. There is the danger that any benchmarks would be eroded in practice by the effort to help

young people get ahead even when they are not ready, or to

prove effectiveness of an activity by inflating the number

of participants attaining competencies. The key to maintaining standards is to have a set of measurements that can

be applied outside of activities, and to establish an

independent unit responsible for setting and maintaining

standards. Competency acquisition should probably be documented and monitored by the prime sponsor. Since the prime

will be subcontracting most operations, it will have an incentive for maintaining these standards. Likewise, the

local council which set the standards would also have an

interest in their maintenance. As part of the review of

activities, spot-checking could be done to verify any

results reported by subcontractors. Follow-up with employers

could be used to determine whether the skills were, in fact,

as documented and whether the standards were reasonable. In

other words, as long as there is an independent check on

standards, they cai; probably be protected against erosion.

3. Ramifications

The benchmarks have implications for the delivery of service

as well as the documentation of competencies to employers.

The positive side is that they permit individualized prescription

of services, and provide realistic goals for participants.

Less resources will be wasted delivering services to persons

who already have competencies, and it should be possible to

better concentrate resources on those who fall short. The

potential problem is that service deliverers will uae the

individualized record in a negative way. It is alleged, for

instance, that teachers who are told youth are bright will

treat them that way and vice versa, creating a self-fulfilling

prophecy. There are several reasons to believe this impact

will be marginal under CETA. First, nothing could be worse

than the current system where there are nc, measures of

competence and where deliverers are tested not on the gains of

individuals but simply on placement outcomes. There is

every incentive to "cream" in those who can most easily be

served. Better documentation of deficits, and reduced

pressure on termination but increased emphasis on individual

gain Cates, would encourage more rather than less targeting._

It has the experience in Job Corps that those youth,with

the greatest deficits can, in fact, gain the fastest, so that

benchmarking systems with multiple levels would encourage

services to such youth. Prescription of services sill also

usually be separated from delivery, so that it is not always

necessary nor expedient for service deliverers to know everything about past histories except as these effect services

23
- 205

being delivered. Further, CETA is a system whose mission

is to help those with greatest needs whereas the schools

have a mission to educate all youth. If anything, service

deliverers tend to want to do more rather than less for

each youth than they serve. Better identification of those

with serious needs should lead to better services for them.

It is clear that disadvantaged youth who attain competencies

will be better off for being able to document them to the

extent they are now denied opportunities because they are

ascribed the average characteristics of disadvantaged youth.

Youth who have more difficulty will be better off if they

get more services because their needs are better identified,

and are therefore able to attain competence. However,

those who do not make it even with help may bear the onus of

"bad paper." It is important to note that benchmark

certifications and any other information from individual

Career Development Records will only be provided to the

records will only be provided to the employer based upon the

concurrence of the youth. The youth without a resume should

be no worse off than currently where all those without resumes

are lumped together and ascribed the lowest common demonstration. It is these youth who do not make it by the end of

the teens who will be given concentrated remediation. In

other words, some disadvantaged youth will not be helped by

the benchmarking system but they probably will not be hurt.

On the average, there should be improvement for the cohort.

Even if employers have varying receptivity to specific

certifications, the process of developing and selling such

benchmarks to the public should increasingly alter perceptions

of CETA and its participants. There is no question that

benchmarks can be useful in improving the payoff of youth

preparatory activities.

Incentive Grants, Summer Components

and E ual Chance Su ements--

The Procedure Approaches

The local preparatory system, with all its subparts, may

appear complex, but, in fact, all the components will

operate with the same eligibility criteria, the same MIS,

the same requirements for benchmarks, continuing individual

records and service or investment agreements, and the same

management structure. Each of the subparts includes the

minimal extra requirements needed to assure that its purposes

are met. Most of the differentiation and "categorical"

considerations are "front-ended" as part of the application

and planning process.
- 206 -

Formula Grants

The basic formula grant--one part for year-round and the other

for summer activities, will distribute to each prime sponsor

a basic grant. The summer component will be fully integrated.

The participation levels during the summer months must be

no less than the amount provided by these funds. In other

words, this will set a floor for summer activity. The

redesigned MIS for local preparatory efforts already

anticipates a very simplified consolidated monthly report

on participants, so that this flow could be easily enforced.

Most prime sponsors beef up their summer-only activities

already from other categorical programs; there would be

little risk service levels in June, July and August would

be below the level justified by the summer allocation.

Essentially, then, no extra reporting is required and the

summer component would silly provide a different weighting

in the allocation formula and protection against any unreasonable shifts in prime sponsor programs.

Equal Chance Supplements

Those prime sponsors adjudged to have adequate overall

programs by the Department of Labor's review of procedures

and the Youth Opportunity Councils reviews of quality would

be eligible _for Equal Chance Supplements.-The Secretary

would specify quantifiable criterion of need such as youth

employment/population ratios in the neighborhood, poverty

rates, school dropout rates, crime rates, illegitimacy

rates and other measures of pathology. Each eligible prime

sponsor would be given a maximum percentage increment in

funding for which they could apply. Assume, for instance,

that the Equal Chance Supplement national equalled 20

percent of formula grants and that prime sponsors receiving

a fifth of these grants were ruled ineligible for-Equal

Chance Supplements because of poor quality of their basic

programs. This would mean that the aggregate increment

for eligible prime sponsors would be 25 percent. Each eligible

prime sponsor would define a target area(s), would .?rovide data

available on the pathologies of this area, would estimate

the fair share proportion of resources going to resident

youth, and would provide an Equal Chance budget proposal

for the target area which would substantially increase

these resources but not exceed, say 50 percent of the basic

grant. The Secretary would rank the target areas according

to the need indices, and would fund down the level of need

with consideration of the quality and innovativenss of proposed

service offerings and review to assure that a fair share

of formula resources was also committed to the target areas.

This would provide prime spon=sors an incentive to focus on

those areas with the greatest problems and to intensify the

level of resources in these areas in order to qualify for

funding. If resources for the Equal Chance Supplement were

more limited, the eligible applicants could be restricted

23,
- 207 -

to those areas above some defined poverty and/or unemployment

cut-off point, with the same procedures applying. Essentially

this entire process would be similar to that used in selecting

Entitlement sites, except that the application requirements

would be enormously simplified.

Once an Equal Chance Supplement is received, the prime

sponsor would merely have to document annually for target

area residents the same information provided for the full

prime sponsor area in order to assure that targeting was,

indeed, achieved as proposed, i.e., there would simply be

an identifier for residents of these areas and they would be

given preference at intake. Failure to meet resource commitment levels would lead to disqualification for Equal Chance

Supplement. The MIS would facilitate this extra report

without a great deal of difficulty.

Incentive Grants

Those prime sponsors adjudged to have adequate overall

programs by the Department of Labor's review of procedures

and the local Youth Opportunity Council's review of quality

would be eligible for incentive grants. The eligible

prime sponsors would be offered a menu of incentive choices,

the "categories" and the "ingredients" specified by

regulations, and the "prices" or matching formulae established by the Secretary. The process would work as follows:

1. The Secretary would assess the relative success of

the prime sponsors in achieving the goals of each of the

categories. The Secretary would divide the aggregate incentive funding among these categories and would set target

matching ratios for each category. For instance, the

Secretary might determine that private sector involvement

is a greater need than Employment Service linkages, and that

the former is more difficult to achieve. Presuming $200

million among five _categories,the Secretary might set a

preliminary allocation and estimated matching formulae

as follows:
- 208 -

Incentive Regional

Dollars Match

Community based group involvement 50 2:1

Special needs group projects 50 1.5:1

Private sector efforts 50 1:1

Employment service linkages 25 2:1

Young adult local training incentives 25 1:1

2. The Secretary would detail the requirements to be

eligible for incentive funds in each category. Certain

model programs found to be effective in experimental and

demonstration activities would be set forth as acceptable

options in each category, along with the standards for any

other proposals. For instance, the private sector category

specifications might read as follows:

o All projects in this category must have as a central

element the involvement of employers, employer organizations or organized labor in the planning and delivery

of services.

All projects must represent an expansion or enrichment

in the prime sponsor area of the types of activities

proposed.

o All projects must be conducted with approval of the Private

Industry Council.

o All projects must have a plan by which the activities,

if successful, would be integrated into regular program

operations at the completion of the 2-year period.

o 111 projects must meet the requirements for local basic

programs.

o All projects must serve out-of-school youth or concentrate on high-risk youth in school.

Model projects would be described. For instance, the enriched

YCCIP-type project which has been modeled and tested under

YCCIP and involves direct organized labor participation, would

be described in its major elements, with specification of the

necessary agreements and arrangements. Another labor union

23.r
209 -

or business sector involvement model would be Vocational

Exploration (various vocational exploration approaches are

now being tested under experimentally controlled conditions).

A third might involve businessmen and union members in

screening youth and ensuring that benchmarks were realistic

and enforced. A fourth might be for the 70001 or Jobs for

Youth approach, if new or expanded in the particular area.

The models would all specify the agreements and arrangements

as well as required design elements. In other words, the

prime sponsors would be funded if they implemented one of

the models or if they had a proposal meeting conditions

like those specified above. Each category would set similar

conditions.

3. The "demand" among eligible prime sponsors for each

of these incentives at the "prices" or matching ratios and

conditions established by the Secretary, must be determined.

This will be difficult in the first year when there is no

experience. The attractiveness of a category would be

determined according to the difficulty and-,desirability of

implementing an allowable activity, the matching. formula

and the strictness of the conditions in the regulations.

For instance, in the community based group involvement

category, there would, be more of a bUrden of proof that the

activity was net newand that it would be integrated into

regular operations at the end of the grant period; in other

words, the same activities probably would not-be funded over

two grant periods. Services to special needs groups, where

extraordinary costs are involved, might be less strict in this regard.

Todetermine demand, there would be an initial planning

round in which each prime sponsor would be given a planning

estimate of total allowable incentive funds. If incentives

equalled 20 percent of formula grants, and prime sponsors

receiving one-fifth of formula grants were found to have inadequate basic programs and to be ineligible for incentives,

then, each eligible prime could apply for one or more

incentives totally to one-fourth of the basic formula grant.

The prime sponsor and the local councils would review the

models and regulations and the matching formulae relative to

their own capacities and needs, and would decide where to put

emphasis. If, for instance, their programs were already

operated by community based groups, and expansion of the

share was not a high priority, they might instead emphasize

private sector activity. The tendency would be to take the

path of least resistance and to ask for incentives for

activities already achieved, but the applications and

regulations would require evidence of expansion or enrichment.

At any rate, in the initial planning round, the prime sponsor

would merely indicate the intent to apply in different

categories. For instance, a prime might be eligible for

$1 million in incentive funds to go with $4 million in basic

3
-210-

grants. Assessing the program, the decision might be made

that education linkages and advanced training for young

adults are the weakest areas, and the prime would apply for

$500,000 in education category funds, pledging a match of

$1 million from the formula basic plus $500,000 for young adult

$500,000 for young adult local training incentives, with a $500,000 match

from CETA Title II.B. Other prime sponsors would presumably make

different choices, some choosing to apply in all the categories, others

with emphasis on only one area.

The preliminary commitments of intent would come into

the Department of Labor. The dollars in each category would

be totalled. While the aggregate would be no more than the

available incentive dollars because of the application

limit for each. prime, the Department's initial "guesses"

about the demand for different categories of activity and

its preliminary matching ratios would not necessarily yield

adequate distribution among the categories. For instance,

the totals might be as follows:

Secretary's Total of Prime

Target incentive Sponsors' Intew

Dollars to Apply

Community based group involvement 50 100

Special needs group 50 50

Private sector 50 65

Employment Service linkages 25 25

Young adult local training- -_

incentives 25 35

Based on these data, the Secretary would make a final decision

about matching formulae. For instance, the match for special

needs group projects and education linked activities might be

reduced from 1:1 and 2:1 respectively to .5:1 and 1.5:1, while

the private sector and young adult category matches might be

increased. If one category was particularly oversubscribed,

the Secretary could also set a percentage application limit

for any prime sponsor unless justified by unusual circumstances.
- 211

The final ratios would then be published and prime sponsors

would submit applications. The changes in the matching

formulae would not guarantee coming in exactly on target in

the first year, but it would mitigate rnaldistributions noted

in the preliminary application round.

4. The application for incentive funding would be a

relatively simple procedure describing the activities to be

funded relative to the requirements of the regulations.

Presuming the proposals meet both the content and process

requirements, they would be approved. For each category,

there would be specification for a short annual report by

the prime sponsor reviewing incentive activities. For each,

there would be a few key indicators to assure compliance.

In the special needs category, the expenditures for special

needs groups would be the indicator. For the other categories,

it would be evidence of contracts and expenditures for the

proposed activities. The Department of Labor would review

annua4y these incentive activities to assure they were

meeting technical requirements, Special studies might be

ouudssimed to detemine natiomide efforts in each catesory. In

gamma, however, the activities would be integrated Lnto"the managerent

and ocn systen of the pr e. sponsor'. After receipt, the prime

for meeting any special conditions

igible or continuation of the incentive grants.

5. In the next grant cycle, Federal priorities

might change. Progress in one category might suggest the

need for less emphasis. New models might be developed in

another which need replication. Experience might show the

need to redraft requirements to get more leverage.

The Committewbn Yopth would make recommendations to _ the Secretary for such changes. In the next round, the

matching formulae and target allocations among categories

might be changed. The aim would be to insure some continuing

innovation in the system. For instance, in most cases,

activities that proved effective in the previous round of

incentive grants in a prime sponsor area should be integrated

into formula activities and would not be eligible for refunding.

Some would prove to be ineffective and would merely be dropped.

Adaptation would occur in other cases to meet more refined

guidelines.

While-these incentive grant procedures are different than

those now used, it is not an enormous complication. For

instance, prime sponsors have responded to application

procedures for Entitlement grants, for solar energyTorojects, for exemplary in-school incentive grants and the

like. This would simply consolidate these activities and

limit them to once every two years. All categories of local
- 212 -

basic funding would be merged into a single operational grant

that the prime sponsor could count on. There would be one

operating system and no further competitions during the

period which would detract from operations. In other words,

the negotiation and development of incentive applications

would all be "front-ended" and there would be a stable

base of operations until the next incentive round. It would

be possible to run the incentive grants on two year cycles

if greater stability were required.

Flexible Allowance Approach

The allowance payment system established for CETA consists

of the basic allowance with a variety of adjustments for

dependents, special welfare status, extraordinary participation costs, and adjustments for receipt of other compensation such as unemployment insurance. The basic allowance

rate is equal to either the Federal, State, or local minimum

hourly rate, whichever is higher. The allowance formula is

the hourly wage rate multiplied by the number of hours of

participation. The basic allowance payment system's emphasis

is the use of the minimum wage rate and the number of hours

of participation. With this emphasis, the allowance is a surrogate

for a wage system rather than an incentive provided to induce

learning and development. As a wage/hour system, it is

adjusted around these factors rather than proficiency. The

allowance payment is not geared to the level of participant

proficiency as assessed by the sponsor nor does it relate

to the concept of an inducement graduated for learning gains.

The basic allowance in a wage X hours system rewards

number of hours of attendance, with no incentive geared

to quality within this attendance.

Therefore, under the employment and training section of the

Youth Act, a learning grant in lieu of the basic or incentive

allowance would be used to compensate participants in

preparatory programs where this was considered appropriate.

Each prime sponsor would establish equitable ground rules

for its learning grants. These ground rules would consider

the level of skill proficiency of the participant and the

income and wage levels of the prime sponsor. Since it is

not geared to the wage rate or number of hours of participation, sponsors will develop a scale with incremental

steps indicating the grant sum for each level of proficiency

attained by participants.

Benchmark standards to be established by eash of the prime

sponsors will be used to measure youth progress within the

preparatory program both in attainment of increasingly

higher skill levels within one competency field and development of a range of abilities that together constitute a

level of proficiency that can be certified as a competency.
- 213

But they can also be used internally to structure a compensation system which rewards people for their achievement

both on-the-job and within related training and educational

components. This approach provides an incentive to individuals to move ahead and it reflects the payment structure

within the world of work. Both skill level and seniority

could be taken into account in developing such a program.

The level of proficiency will be determined by the sponsor's

assessment procedures and reflected in the Investment

Agreements developed for the participants. Participants

certified at or below the pre-employment status will

receive the lowest learning grant. As the proficiency

level is raised for each participant, the grant sum should

be increased. Although the level of proficiency will weigh

the heaviest in setting the grant level for each participant,

sponsors will vary in the levels because of their geographic

differences. Sponsors in low cost areas will have grants

lower than sponsors in higher cost areas. No adjustment

scale will be used to gauge these differences related to

geographic differences, rather each sponsor will make its

own determination on the learning grant level based on its

geographic jurisdiction. For youth above the age of 18,

regular allowances might be paid. On the other hand, new

entrants into local programs will be unstipended for a period

designated by the Secretary. During this period they will

participate in job search assistance and other activities

designed to help them identify their own jobs where these

exist.

24,)
214 -

E-Sc ALE PROJECTS,

neNee412E1122bilE22=EEA1212ESITLAMEESEt

The large-scale Federal project approach has not been utilized

in employment and training programs for youth since the New

Deal. There are several reasons why it might make sense:

o Jobs and training must be more carefully structured

over a continuum if they are to meaningfully impact

on the future careers of economically disadvantaged

youth. There must be a single track from early work

experience to more intensive training to career ladder

employment. It is clear that training is best linked to

specific jobs, which in turn requires greater coordination

between training and job creation or development. Where

there are disjunctures, youth tend to "fall between the

cracks," not making the training connection or the subsequent

career connection. A self-contained system with all the

linkages built in can minimize dislocations.

o Mobility is a major factor for youth in finding jobs and

careers. Except for Job Corps, most programs are locallyoriented and, therefore, linked to supply and demand

situations in the immediate labor market area. In fact,

most youth need to and do move, but this is infrequently

part of a planned process. It is especially important

for economically disadvantaged youth residing in poverty

areas. National programs which would design for mobility

could drastically increase employment options for disadvantaged youth.

24
- 215 -

o There are costs in terms of waste and misdirection in

hastily conceived and implemented job creation projects.

Productive employment of youth, particularly those with

limited work experience,requires realistic, detailed

and methodical planning and implementation.

o Local employment projects, because of their stop-andgo funding, their focus on entry level Work and skills,

their lack of job security, and their frequently

unrealistic pay scales, are unable to attract and hold

highly skilled and competent staff. Organized labor can

rarely participate because journeyman wages cannot

usually be paid for supervisors and the projects are

of too short a duration to negotiate a workable involvement. In order to avoid problems with organized labor,

local programs usually shy away from intensive training

or high technology work which might attract concerns

from unions. AS a result, the productivity of youth

employment and training efforts is hampered.

o Because projects are not carefully organized, and available resources tapped for equipment and materials, inefficient approaches are sometimes adopted which do not

make for a quality work or training experience. Each

little project usually has to hustle to make arrangements

for funding and linkages, creating a very significant

drain on productive energies.

o Because projects are small and scattered, there is

difficulty building career ladders which link experiences

in a cumulative fashion. With limited long-run opportunities, youth tend to remain for only the short term.

Small scale and uncertain funding severely constrains

the types of activities which can be undertaken. There

is an advantage to *thinking big" in some cases and

scale provides the opportunity for utilizing creative

and technical energies. It is difficult to take risks

or to concentrate resources at the local level, where

there is every pressure to spread funds among constituencies to continue business as usual.

o The large-scale of projects justifies the effort that

takes to coordinate interagency efforts.
216

Project Characteristics.

These arguments all suggest the need for a large - scale

project approach. The discretionary fund of the Secretary

would fund projects that would empl(100 young people or

more in a single site or with mobility arrangements for i

operations at several sites over the life of the project.

The projects would operate for no less than 2 years. They

would offer a progression of skill levels and work

opportunities to provide career ladders for young people.

Vocational training and education needed to prepare participants

for more skilled jobs in the projects would be designed

as an integral part of plans. The projects would utilize

sophisticated production and organization techniques,

skilled supervision and would have adequate provisions for

materials and supplies; They would produce a tangible and

lasting product and would have a "multiple social utility"

in the sense of addressing critical national needs in areas

such as the environment, energy, weatherization and

transportation while maximizing the career impacts on youth.

They would seek to tap existing resources within Federal agencies

and to be administered utilizing existing staff insofar as i

possible. Finally, the administrative and organizational

arrangements would be fully detailed before any project would

be implemented.

Low-head hydroelectric dam restoration - About 50,000

ItTaheaddaMd exist in the United States, many of which

are used to produce or have potential for producing

electricity. Rising energy costs may now make improvement of such dams for energy production economically

feasible. They ae often located in the heart of older

cities where their rehabilitation could help conserve

older neighborhoods or augment historical preservation

efforts as well as developing recreation potential. In

rural areas, deterioration of dams, with imminent danger

of collapse in some cases, has frequently created hazardous

conditions. While some of the work needed for restoration

and conversion- is basic and could be done by unkilled youth,

heavy equipment work would be needed for some of the constructior

as well as skilled work in the installation of hydroelectric

equipment. Training for career jobs would be possible in both

cases. There is Department of Energy money available for

hydroelectric work and Corps of Engineer funds for safety concerr

These could be pooled with the youth employment and training

resources to be provided under this Act. A schedule of

dams could be addressed with a mechanized corps of youth

workers and supervisors moving from site to site, pulling in

other youth locally for entry level work who could be integrated

into the higher skilled jobs as any turnover occurred. A

coordinated set of projects could employ several thousand

young people..

2
- 217

Weatherization - Available funds for materials

drastically exceed funds for labor. The work which

is done in thousands of local projects around the country

is at the, most rudimentary skill level, is rarely

mechanized nor achieves economies of scale. Youth and

other workers infrequently receive training which provides them career opportunities and union involvement

which can provide linkages into the labor market is

usually not present. It might be possible to mount

statewide programs with better organization, training

and mechanization, Not only would insulation techniques

be upgraded, but heating and cooling plants and approaches

could be addressed. It might also be possible to warehouse materials, do large-scale purchasing, and to

utilize factory construction techniques to some extent.

Instead of just handling the homes of low-income families,

public properties might be upgraded such as milita

installations, Job Corps centers, institutional facilities or schools, where public funds could be saved from

reduced energy bills and where planning could lead to efficient large-scale efforts. A number of projects, each employing hundreds of youth, might be arranged through this

approach. One key would be to remove the institutional

impediments to the consolidation of funding. An approach

worth testing might be a statewide nonprofit corporation

to broker and coordinate the projects by local CAA's.

The membership on the board of this nonprofit could be

representative of these CAA's.

o Removin I a ica - There has been

a great deal of tal ut a boo little action in improving accessibility of public facilities of all types.

Because each project tends to be discrete, and the

standards are so uncertain, economical approaches are not

always replicated and the costs of adaptation are sometimes inflated. By organizing on a larger scale, and

training specifically for the types of jobs which would be

accomplished, it should be possible to employ thousands

of young persons in productive tasks. Again, public

properties with multiple facilities such as Job Corps

centers or schools might be addressed first to provide

a basis for such organization.

o Conservation - The Young Adult Conservation Corps has

residential camps in some parks which are up to 150

enrollees, but this is the exception rather than the

rule. What would be addressed under discretionary

projects would be massive restoration of a single park

or wilderness area where there would be a multiyear

strategy involving heavy equipment and skilled jobs as

well as those at the entry level. Likewise, it might

be possible to undertake a large-scale urban park approach

such as the Washington, D.C., mall project.

24
- 218 -

o New Energy Sources - The government is subsidizing

development of a broad range of new energy sources.

Several of the project areas which offer potential for

employment of young adults are biomass conversion or

gasohol production and distribution on a large scale,

solar energy applications in public buildings and properties, and restoration of lands where shale oil or

coal gasification will create known environmental

impacts. In each of these developmental efforts, youth

employment projects might be built in from the outset.

For instance, the Job Corps satellite program in land

reclamation in Kentucky has demonstrated how training

in career fields can be linked productively to socially

useful work experience.

o Public Housing Restoration - Some of the most severe

an ntracta e soc a problems faced by our Nation are

concentrated in large-scale public housing projects.

Millions of Federal dollars are allocated each year for

modernization and improvement. However, residents and

particularly resident youth are rarely involved in the

work, and there is not enough planning and continuity

in many cases to insure that the gains made are not

quickly eroded. There are some projects so large in

scale that a 5-year plan for improvement and modernization is required as well as new mechanisms for seeing

that the work is done effectively while creating jobs

where possible for residents. One route might be nonprofit restoration corporations sited in large projects

with a front-end set-aside of HUD modernization money

and job creation funds. The nonprofits might be funded

through HUD and could either be made up of craft union

representatives or else neighborhood-and communitybased groups. This would be a way to get more from

existing outlays.

o Railroad operation - It is likely that portions of the

bankrupt Rock Idland railroad will continue in public

operation. One possibility would be for a consortium

of railroad unions to form a nonprofit corporatiot and

operate the portions under public contract. The

operations would be designed as a training ground tor

new personnel. Disadvantaged young adults would work

and participate in skills training under this project,

and then would be placed by the unions in jobs in

other railroads.
- 219

Interagency Carer Entry

The Interagency Career Entry programs authorized at the

Secretary discretion are a formalization of the extensive

linkage activity which ahs occurred under YETP and YCCIP

discretionary authority. Almost a fourth of these

resources are involved in interagency projects which

usually involve the transfer of resources to the other

agency for administration consistent with the regulations

of YETP and YCCIP.

Under the proposed Youth Act, the Department of Labor,

through interagency agreement, would transfer funds to

other Federal agencies for the employment and training of

young adults where their jobs or training would be intergrated

into activities funded or operated by these agencies or

generated in the private sector by their actions. The funding would be restricted for hiring or training economically

disadvnataged out-of-school youth in career transition

positions with high potential of future employment and for

which they would otherwise have limited access. The young

adults would have to be referred by prime sponsors through

the localized systems based on experiences noted in the

individual record and as prescribed in Investment Agreements; in other words, local basic programs would prepare

the youth and then place him or her into the advanced

opportunities provided by these interagency career entry

programs.

In all these interagency efforts, the aim would be to

multiply the public social utility of actions or efforts

which would otherwise be undertaken by increasing the

access and training impacts for economically disadvantaged

young adults.- The 2-yeavagreementswould focus on targets

of opportunity for effective cooperation. The legislation

would specify broad emphasis areas, such as energy, conservation and transportation.

A number of promising interagency concepts have been

developed under YEDPA or in the process of the President's

Policy Review Memorandum process:
-220 -

o Internships in the Federal Government - There are a

scattering of Federal internship programs which tend

to be operated in different ways by different agencies.

Working with the Office of Personnel Management, it

should be possible to develop a comprehensive approach

which would draw mature, carefully selected youth

from local preparatory programs to work in a range of

Federal agencies with DOL funding. The agencies would

have responsibility for placement efforts. All of

the participants would be economically disadvantaged young

adults who had achieved the requisite benchmarks of

career preparation.

o Rural health - Linked with efforts to expand rural

health centers, young adults would receive intensive

training and then would receive career apprenticeship

assignments in newly created health centers.

o Weatherization - Expanded weatherization efforts by

the Community Services Administration will provide

opportunities for trained supervisors and technicians.

The discretionary funds will be used for such supervisory

and skilled positions which would lead to Permanent jobs.

Urban and Economic Development - There are possibilities

for linking training and career entry employment

arrangements to Urban Development Action Grants and

economic development grants at the Federal level to

move beyond what can be accomplished by local coordination.

o Mass Transportation Repair - Expanded railroad and mass

transit programs will generate needs for skilled personnel.

A training center would be established for this purpose

linked directly to jobs created by Federal grants.

o Civilian defense employment - The Department of the Army

has indicated a willingness to explore career entry

employment arrangements relative to civilian employment

at several bases.

Tourism - Arrangements have been discussed with the

Department of Commerce to implement intensive training

courses for disadvantaged young adults followed by

periods of work experience in the hospitality industry.

o Census-taking - The National Commission on Employment

and Unemployment Statistics has recommended an expansion

of the Current Population Survey. This will create

regular jobs for interviewers. This could be linked to

a training and industry work experience program for

disadvantaged young adults.

o Regulatory Agency Compliance - Funds might be provided

for the employment and training of young adults in

career positions in the private sector necessitated by

compliance with Federal regulations. There would be an

effort to soften the blow of government regulation while

providing young adults the opportunity of moving into

newly opened career tracks.

These are only some of the examples of what might be achieved

through cooperative efforts of Federal agencies. The Youth Act

would institutionalize and provide the resources for such

cooperation. 21 i
221

APPENDIX 5

INTEREST GROUP PERSPECTIVES AND THE EMPLOYMENT

D TRAINING COMPONENTS OF THE

YOUTH ACT

The Youth Act is designed to

capitalize on the comparative advantages of each of the

institutions with a major role in the employment and training system. It seeks to balance interests and mitigate

institutional concerns. All this is accomplished consistent

with the reorientation and restructuring dictated by the

analysis of youth labor market problems and program

experience. Because of the, inherent complexity of this

comprehensive youth legislation, it is worthwhile to

specify how the institutional "players" would be affected

and their interests balanced.

Prime Sponsors

The Youth Act provides major benefits to CETA prime sponsors

by simplifying management, clarifying responsibilities and

concentrating authority:

1. Consolidation of SYEP, YCCIP and YETI' and "buying

out" Title II.B. work experience and employability skills

development into a single grant with a single set of reports

as well as a single set of regulations and procedures is

an enormously attractive feature for the prime sponsor

community because it eliminates red tape, the necessity of

distorting individual services and area objectives to meet

categorical requirements, and the inappropriate levels

of some activities relative to local needs.

2. Multi-year funding would provide stability which

is now sorely lacking in local programs and would reduce the

paperwork and effort in writing annual subcontracts.

. The shift from regulatory presbriptions to

incentives will have significant impacts locally. It

reduces documentation of procedures. It "attaches.

strings" where they will provide useful results rather

than forcing nominal compliance with requirements for

agreements even when they have no meaning. It permits

adaptation to local needs and a clear choice of local

priorities.

4. The MIS for the-new system is noticeably simplified and yet

much more useable for prime sponsor needs. Implementation

will be an ordeal, but since substantial modifications are

already planned to meet new CETA requirements, it is a

good juncture to upgrade computer equipment and utilize

the potentials for computer managed instruction. The

Federal reports requirements are reduced markedly.

24 C'
222

5. The departure from long standing CETA plan and

modification procedures will eliminate paper exercises

which serve almost no purpose for youth programs.

6. The bifurcation into an adult and a youth system

with-different MIS, rules and regulations will create some

problems, but most prime sponsors already have youth and

adult divisions, deal with different delivery agents in

each case, use different forms and follow different regulations under the separate categorical programs. The

inclusion of youth participant outcomes in the data base

for programs being judged according to employment and

earnings gains of participants undermines the meaningfulness of the information and the capacity to use it to

judge performance. Bifurcation as envisioned under the Youth Act

will "cleanse" the adult system, increasing potential

performance accountability.

7. The expanded technical assistance directly authorized

under the Secretary's discretionary resources would, if adequately

fundcd, have a major impact on prime sponsor capacity. This is a

critical need.

8. The new Act clarifies the pridrities of Congress and the

Administration; these will be translated into allocations

for incentive categories and reflected in the adopted

matching formulae. This contrasts with the present system

where primes are asked to.achieve a number of goals with

no clear Federal priorities, and then are subject to

question when their decisions do not meet expectations of

some interest groups.

9. The Act would consolidate local funding through

prime sponsors. There would be no direct funding of grantees

from Washington except for capacity building or united

experimental programs. All the linkage incentives, including

those for support of community and neighborhood groups, would

operate under a single local financial system.

10. All career entry employment and training programs

operated by the Federal government would draw youth from

the prime sponsor system utilizing the individual service

record system developed by prime sponsors. This would

eliminate multiple and competing intake points for programs.

11. The maintenance of effort provision under Title ii-B

would be eliminated. Under the strategy recommended by

the Department of Labor, prime sponsors would have

increased resources for adults and young adults as youth

work experience and employability skills development

activities are consolidated. Young adults

ready for career training and career entry employment

would have to be served equitably in the "adult" system,

but this would be determined by traditional significant

segment prioritization procedures.

. 2 4.r)
- 223 -

12. The linkage activities with other agencies,

particularly the schools, would be targeted, would receive

incentive support and would be paralleled by incentives

on the education side. In other words, Local Education

Agencies would not get their basic skills funds unless

they, too, linked with prime sponsors. The burden would

no longer rest solely on the shoulders of the prime.

These features make the Act a very attractive package

for prime sponsors. There are, however, some dimensiods

which will be subject to discussion. The incentive

approach is an attractive alternative to prescriptive

regulations, but prime sponsors with inadequate programs

will not be eligible for these incentives. In other words,

it will be very visible when a system is not adequately

functioning, and there will be a good deal of pressure

on ineffective prime sponsors. The less capable ones

will be teary of a system which will visibly identify

their problems and take action on them.

The Act also envisions that prime sponsors will

become the "delivery agent of last resort" for most preparatory activities. They would, to a major extent, become

the managing agent and allocator, rather than provider.

Most prime sponsors subcontract for delivery of services

for youth. Only a few have large delivery staffs, and

these are usually for intake and assessment which might

continue to be centralized. The movement to greater

decentralization will be relatively easy if added resources

are provided.
_ 224

Community -and Neighborhood-Based Organizations

And Voluntar Youth Serving Agencies

The Act strengthens the role of community-and neighborhoodbased organizations and voluntary youth serving agencies in

four ways: First, it increases the incentives for local

choice of community- and neighborhood-based deliverers; second,

it provides direct assistance to such groups to assist them

in developing the capacity to compete for local funding;

third,#it emphasizes the role of prime sponsors as purchasers

of service rather than delivery agents; and fourth, it also

provides incentives for serving high risk, handicapped, and

other youth with special problems which are traditionally

best served at the local level by community and neighborhoodbased groups.

Under the Youth Employment and Demonstration Projects

Act, "special consideration" was to be given to community

and neighborhood-based organizations of "demonstrated_

effectiveness." in YCCIP, such organizations were made, by

regulations, the presumptive deliverers of services. There

were procedures for notification and for clearance of plans

with community-based groups; the purpose was to assure them

a chance to compete. Participation by neighborhood- and

community-based groups was more substantial under YETP

and particularly YCCIP as a result of these strictures.

There were, however, substantial problems:

o The across-the-board rules were not well

suited to varying conditions. Where community and

neighborhood-based organizations were not strong, it was

sometimes necessary to work with inadequate performers

under YCCIP.

o The "demonstrated effectiveness" provision

essentially locked out many smaller community -based

groups which had not previously participated with CETA.

There was no mechanism to build up capacity to meet

CETA performance and application procedures.

o Federal discretionary experimental and demonstration

projects contracted directly with community- and neighborhood -based groups significantly increased their share of

resources but complicated administrative and organizational

arrangements at the local level.

o After the initial impacts, there was some

slippage in the application of the "special consideration" language. Certainly, there were no incentives for

further increasing the share going to community-and

neighborhood-based groups.
- 225 -

o The clearance and notification procedures

created a great deal of red tape for local program operations as well as for community-based deliverers.

o YETP and YCCIP did not extensively reach the

hard-to-serve among the disadvantaged- -young mothers,

troubled youth and the handicapped. These are the types

traditionally dealt with by smaller community- and

neighborhood-based groups. More emphasis on this

clientele would probably have resulted in more delivery

through community- and neighborhood-groups.

o The emphasis on placement and positive termination rates affected all projects working with harder

core youth and seeking longer term developmental objectives, but particularly community- and neighborhoodgroups which predominately emphasize "wholistic"

assistance to youth.

Thc new approach eliminates the special consideration

language from local programs funded by formula, but

provides incentive funding on a matching basis for expanded local efforts to involve community- and neighborhood-based groups as weA as voluntary youth serving

agencies.

The set-aside and matching formula approach for

incentive funding of this special emphasis category has

been outlined previously; the priority to be placed on

this objective could be addressed directly in congressional

and administrative budget decisions. If Congress and the

Administration decided on $50 million for incentives for

community-based groups involved, and if there were a dollar

for dollar match, this would provide for $100 million in

local activities delivered by community- and neighborhoodbased groups and voluntary youth serving agencies. These

groups would also compete for the remainder of localized

programming. Since the incentive money would be for new

or expanded activities, the base established under YEDPA

would be expanded under the Youth Act.

Institution-building support would help to improve

the capacities of community- and neighborhood-based

organizations. This might be delivered in several ways.

First, national organizations or networks might be
226 -

used. The Community Services Administration provides

support to Community Action Agencies and Community

Development Corporations. This could be supplemented to

focus on their participation in youth services locally.

HUD could aid public housing associations; LEAA could

assist its network of agents providing service to

delinquent youth; ACTION could assist voluntary agencies.

Insofar as possible, the assistance would provide

specific products to specified community- and neighborhood-based groups, and would involve certification of

their capacity to perform. There would be an effort to

develop some minimum national standards of demonstrated

effectiveness.

Congress and the Administration could make clearcut decisions about the priority to be placed on

delivery through neighborhood-and community-based groups

and voluntary youth serving agencies by the appropriations levels for the institutional support/technical

assistance and for the CBO emphasis category in the incentive grants. Likewise, these groups could press their

case relative to these specific categories.

The community- and neighborhood-based groups would

be funded through the prime sponsor so that there would

be one track of accountability for performance and a ccv.lsolidated operation. All else being equal, this is,

certainly preferable to direct Federal funding of local CBO's

or even umbrella funding of nationally-networked CBO's.

Variability among areas would be recognized. Those

with high levels of C90 participation could choose other

incentive areas, such as LEA linkage programs. Areas

with no CBO's or with ineffective ones could also

ignore this category, but the decision would be visible

and also CBO's would have the ability to build up demonstrated effectiveness through the institution-building

title so that inadequacies of local CBO's could no

longer be used as an excuse. These efforts would be

targeted in areas of low CB() participation where the

prime sponsors were not involved in this incentive

emphasis area. The aim would be to develop a range of

competent delivery agents in each area so that choices

could be made on the basis of comparative advantage,

and to assure that community- and neighborhood-based

groups were utilized where effective.
227 -

Voluntary youth serving agencies such as YMCA's

and YWCA's, Boy Scouts and Girl Scouts, would be explicitly included in the incentive and institutional

support titles, as well as juvenile delinquency treatment, runaway and handicapped youth groups. There would

be an active effort to acquaint these groups with CETA

requirements and to provide them needed assistance.

In other words, the envisioned approach would have

many benefits for community- and neighborhood-based groups

and voluntary youth serving agencies. It would provide

them an opportunity for expanded and improved participation while maintaining accountably at the local level.

Business and Labor

The driving force behind the reorientation and restructuring of youth programs under the Youth Act is to

increase the probability that disadvantaged youth will

ultimately enter career employment in the private sector

or in unsubsidized employment in the public sector. To

achieve this end, the new Act seeks to provide youth with

increased employability skills development assistance so

that they can successfully find their own jobs, to modify

preparatory work experience programs so that they have

the same standards as jobs available to teenagers in the

private sector, to structure activities in a way to insure

that youth referred from CETA to the private sector are

capable of meeting expectations and requirements, to

document competency acquisition so that participants can

better compete for private sector career jobs, and to

streamline mechanisms for access to private sector employment opportunities for disadvantaged youth.

Private employers want two things from teenagers--

the maturity to show up on the job dependably and the basic

skills to function at the entry levels. In selecting

young adults for career they want the demonstrated

maturity and educations and vocational foundation to learn

on the job. The new legislation is designed to meet these

requirements. The employability skills benchmark awarded

after a set of experiences which provide basic world-ofwork skills, would identify those youth able to function
- 228 -

in a regular job setting. By enforcing strict standards

of performance for individuals in preparatory public sector

work experience, so that those who do not perform are

"fired," the new system will identify those youth who

are likely to show up dependably, can function, and are

used to a "day's work for a day's pay." The employment

maturity benchmark will document this for the youth.

The educational and 7ocational skills benchmarks would

identify youth as being ready for career entry. The identification would reduce risk to employers of hiring teenagers and young adults.

Other design changes are important. The multi-year

approach of the basic local program and the tracking of

individuals over time can be used to assure that at some

point every participant will have a period of private

sector work experience. The individualized tracking

allows placement and access efforts to concentrate on

those who have not been able to make a private sector

job connection. Further, the employability skills

development activity anticipated as part of each registrants' career preparation will include active job search

assistance to promote private sector employment. More

realistic job standards in the public sector, and wage

commensurate with what is available in the private sector,

will reduce the incentive of youth to choose public

sector over private sector employment.

In addition to these changes in approach, the Act

has a range of specific features to improve private

sector participation and job placements:

The incentive categories would allow for private

sector involvement in the local preparatory programs

would target funds directly for vocational exploration,

employer participation in education programs and other

activities directly involving the private sector. These

would be new initiatives and would certainly increase

the level of activity currently involving the private

sector. Under YETP and =IP there are no incentives

for such efforts.

Some of the interagency projects could have major

private sector involvement. Government actions generate

jobs and training needs in the private sector. For instance, mass transportation decisions lead to a number
- 229 -

of skilled jobs being created in a labor market and integration with youth employment and training activities

from the outset can provide new careers for young adults.

Energy decisions may create additional government-ownedcompany-operated facilities; specialized training programs

in GOCO's have already proved highly successful for youth.

Under the technical assistance title, there is provision for direct support of business-oriented intermediaries such as 70001 and Jobs for Youth, as well as nonprofit corporations and FTC's, which will work directly

with employers and will serve to screen and follow up on

job placements in the private sector.

There is nothing in the Act that should create problems for the private sector. The PIC's would still be

used, and would play a central role in development of

benchmark standards. Coordination with PIC's would be

required under all private sector initiatives. In other

words, the Act should increase private sector involvement

over time.

There are several dimensions which would clearly increase labor union involvement in a direct and measurable

way, The incentive category for private sector and labor

initiatives at the local level will increase activities

such as vocational exploration, apprenticeship in- school,

building trades operated community improvement projects

and like programs now run by organized labor on a national

demonstration basis. The models will be packaged and promoted from the national level with cost-sharing if they

are implemented locally. Under the capacity building segment,there will be direct support for outreach and linkage

activities at the local level by organized labor. For

instance, local building trades councils desiring to operate youth projects would be able to receive technical

assistance and support. Finally, the large-scale Federal

projects proposed under the Secretary's discretionary subpart would be specifically designed to allow labor union

involvement on a major scale. Small community implemented

projects at the local level are too limited in size and

duration to permit such activity. Under multi-year projects

employing over 100 young adults, this will be possible.

For instance, a building trades intermediary is now being

established under YETP to perate large-scale Job Corps

renovation efforts which will have integrated training

and employment at multiple skill levels for young adults.

A statewide comprehensive weatherization project has been

planned in one state under YETP discretionary funding which

would be operated by the building trades as another model.
- 230

On a more general plane, the division of local CETA

operations,with one system concentrating on employability

skills development and short-term work experiences for

teenagers and a second system concentrating on intensive

training and career entry employment for young adults.

will permit organized labor to focus its attention on

the latter initiatives. There has been very little concern over entry level work experience activities for

teenagers who are at the end of the labor queue and

have limited productivity. Displacement and wage impacts

become much more of an issue at the point of entrance into the primary or adult labor _market. Union protection

can be more carefully enforced in these activities;

union involvement and review will thus be an integral

part of all career entry and training activities as they

have become in Job Corps.

Education and Vocational Education

The Youth Employment and Demonstration Projects Act

(YEDPA)_required prime sponsors to arrange academic credit

for work experience, to spend at least 22 percent of YETP

funds in school under an agreement between prime sponsors

and local education agencies, to "enrich" all in-school

work experience and to experiment with jobs as incentives

to stay in and return to school. These requirements had

a major positive impact on the relations between the education and employment and training systems. The Youth Act

seeks to build on this progress through somewhat different

mechanisms, taking cognizance of the initiatives which are

proposed on the education side.

The new Act design permits varying levels of priority

on activities for in-school youth and for joint activities

with the education and vocational education systems. The

Department's budget recommendations envision that a reduced share of any increased employment and training resources provided through CETA will be used for in-school

youth, with increased emphasis on career training and

career entry employment for mature young adults as well

as more work experience and other options for dropout

teenagers. This decision rests on the assumption that

Department of Education initiatives focused on in-school

youth will balance the out-of-school focus of the Department of Labor.

2,
2

The proposed Department of Education initiatives

include basic academic and employability skills training

for low-income youth, predominantely juniors and seniors,

funded through the Elementary and Secondary Education Act

and targeted vocational education efforts to provide , l';-

tional vocational skills training in higher unemployment

and poverty areas where other facilities are not available.

The education incentive grants under the employment

and training program would require linkages with local

education agencies and joint agreements. General incentives would include those for career entry training

for out-of-school youth which would frequently be mounted

in cooperation with post-secondary vocational training

institutions. For prime sponsors whose jurisdiction

includes target schools receiving funds on the education

side for basic skills training, there would be a requirement that adequate CETA resources be provided to provide

work experience and other employability services. The

education and employment/training components of the Youth

Act are designed so that there is joint input into planning

decisions at the local level. In other words, though the

Youth Act would increase the funding on the education

side for in-school activities and on the employment

and training side for out-of-school activities, there

would be structured mechanisms for continued linkages.
- 232 -

Appendix 6

Ana_ sis of Youth Pro _s Resource Allocations

Resource allocation is one of the most basic issues of public

policy and must be addressed in formulating youth policies

for the 1980's. The goals of allocation procedures are

straightforward--to distribute resources according to need,

to provide funding continuity insofar as possible, and to

utilize procedures which are understandable, reliable and

politically acceptable. Realization of these goals is not

straightforward bzcause of the variety of ways in which needs

can be defined and prioritized, the limitations in the data

for measuring needs, and the almost infinite variety of

mechanisMs which can be adopted for allocation.

Youth programs currently use a range of approaches. Youth

Community Conservation and improvement Projects (YCCIP)

divides resources among States according to the unemployed

population, and within States according to relative shares

of State unemployment. Youth Employment and Training Programs

(YETP) uses a weighted formula of unemployment, excess unemployment and poverty. The summer program uses poverty and

unemployment in its formula, but a "hold-harmless" clauSe

locks most of the resources into the distribution pattern

of the 1960's. Youth Incentive Entitlement Pilot Projects

(YIEPP) sites were docided by competition; Entitlement is

targeted to specific neighborhoods in some jurisdictions.

Discretionary resources under YETP and YCCIP can be utilized

anywhere and have been concentrated in urban and rural poverty

areas. Young Adult Conservation Corps sites are required to

be near areas of substantial unemployment, but essentially

they mirror the distribution of Federal lands. Job Corps

expansion was planned to balance slot distribution according

to the regional shares of unemployed poor youth. Essentially,

then, there are formula approaches and discretionary approaches

where the Federal decisionmakers can select, under various

parameters, the location of activities. Most funds are distributed by formula.

There are problems in the design and application of allocation formulae. There is little correlation between area

adult unemployment and youth unemployment. Youth employment/

population ratios would probably be the most reasonable need

indicator according to experts. However, neither youth employment nor unemployment data are available by prime sponsor as

2
- 233 -

a basis for allocation. A better statistical base upon

which to develop a more responsive allocation formula is

not now available nor is it likely in the foreseeable future.

Thus, in attempting to target more resources to areas in

greatest need, the currently available data for prime sponsors must be utilized despite the recognized inadequacies.

Available data are: prior year funding; adult unemployment

and labor force, number of persons in low income families,

and population.

These data elements ,can be formulated and combined in a

number of ways. Bach reflects a different dimension of

need and its emphasis results in a different pattern of i

distribution to prime sponsors. The major "building blocks"

are the following:

1. Summer Hold - Harmless. In the 1960's, summer Neighborhood Youth Corps fund were:concentrated in central cities

and _poverty areas. This was not based on careful needs

analysis but on political exigencies, crises and operational

capacity. The distribution achieved under discretionary

decisions has been carried forward by a hold-harmless provision under the Summer Youth Employment Program (SYEP).

While the distribution is not based on current needs data,

the formula is politically accepted and achieves a greater

degree of concentration on central cities than has been

achieved under needs-based formulae adopted elsewhere under

CETA.

2. Number of Unemployed. This factor distributes funds

according to each prime sponsor's share of the national total

of unemployed age 16 and over.

3. Low Income Population. This factor distributes funds

according to each prime sponsor's share of family heads with

income below $12,000. The number must be estimated for each

prime sponsor and is obviously only a crude approximation on

need because it is not adjusted for cost-of-living variations

or relative family size.

4. Population. This factor distributes funds according

to each prime sponsor's share of the total population.

5. Excess Unemployment. This factor distributes funds

according to the excess unemployed in each prime sponsor area

as a proportion of the excess unemployed in the Nation. The

"excess unemployment" level can be defined in a number of

ways; the higher the unemployment rate chosen as a baseline,

the fewer the prime sponsors who are eligible. For illustrative purposes, the factor is calculated using three
- 234

alternative baselines: 6, 7 and 8 percent. The share of funds

for each prime sponsor is determined by the proportion of the

national unemployed above these baselines which are accounted

for by the local unemployment above these baselines.

6. Excess Poverty. This factor distributes funds according

to the excess low income population in each prime sponsor area

as a proportion of the excess low income population. Again,

the incidence level used for the "excess" cutoff can be defined in a number of ways. The higher the low income incidence baseline, the fewer the prime sponsors who are eligible.

For illustrative purposes, the factor is calculated using

three alternative baselines for defining excess poverty: an

incidence rate exceeded by one-fourth of prime sponsors; an

incidence rate exceeded by one-third; and an incidence rate

exceeded by one-half. The share of funds for each prime sponsor'is determined by the proportion of the national low income

population in excess of these incidences which are accounted

for by the local low income population in excess of the baseline incidence rates.

7. Excess Population Density. This factor distributes

funds according to the population-density (population/square

mile) in each prime sponsor area. While not a traditional

allocation factor, evidence has suggested that concentration

can generate problems in and of itself. As in other cases,

the choice of population density cutoffs is arbitrary. The

higher the population density baseline, the fewer the prime

sponsors which are eligible. For illustrative purposes,

three alternative baselines of population density are used:

one which is exceededHby one-fourth of prime sponsors; another

by one-third and still another by one-half. The share of funds

going to each prime sponsor above these density levels is

determined by the population in the area in excess of the

density baselines as a proportion of sum of all prime sponsors'

populations in excess of the density baselines.

All of the "excess" factors concentrate resources on prime

sponsors whose unemployment rates, low income incidence rates i

or population densities are above the designated baselines.

It is possible to combine factors into a gradient approach

so that all prime sponsors get some funding but higher incidences of problems get more. For instance, a formula distributing one-fourth of funds by unemployment share, one-fourth

by

and

over 6 percent, one-fourth by excess over 7 percent

and one-fourth by excess over 8 percent, represents an incidence gradient approach which recognizes the intensity of

unemployment but gives some resources'to all prime sponsors.

Similar gradients can be derived for poverty and population.

Different weights could be used within each gradient to give
- 235 -

more or less emphasis to intensity of need. However, for

illustrative purposes, gradients for unemployment, population

density and poverty use the one-fourth weights on the basic

four data elements described above for each factor.

The sets of factors can also be weighted in varying proportions.

For instance, a concentration formula can be derived by giving

one-third weight to excess unemployment, one-third to excess

population density, aid one-third to excess poverty. This

concentration formula would restrict resources to those Prime

sponsors with the most serious composite problems. For illustrative purposes, three concentration formulations are derived

using, respectively, the most restrictive, intermediate, and

least restrictive baselines for unemployment, poverty and

population density. In other words, the three formulations

concentrate resources on different proportions of prime sponsors

and recognize the intensity of need to varying degrees.

There are an infinite variety of permutations and combinations

of these elements. For instance, the Youth Act calls for

a consolidated local program funded by formula. Each prime

sponsor would also have a summer component integrated programmatically but appropriated separately. It is possible to

allocate by the current summer formula or by the same

procedures adopted for the remainder of the consolidated

grant. In addition, there would be an Equal Chance supplement for neighborhoods with particularly severe needs. The

proportion of primes who would be eligible for these

supplements is undecided, and the share the Equal Chance

Supplements would represent of the consolidated grants

could be altered. In such an arrangement, the resources

for any area would be determined not only by the formula

of each component, but by the relative size of these

components. For instance, a large Equal Chance Supplement

emphasizing concentration in its distribution formula

combined with a core grant formula that does not concentrate

is an alternative to a smaller or less concentrated Equal

Chance Supplement combined with a more concentrated core

grant formula.

For illustrative purposes, the funding distribution recommended

by the Department of Labor as part of the Policy Review Memorandum process is utilized to determine the relative size of

the base grant (plus incentives), the Equal Chance supplement

and the summer component. One set of options utilizes the

current summer formula in distributing summer funds; the

other distributes the summer money by the same formula as

the base grant. The three alternative levels of concentration

are utilized for Equal Chance Supplements
- 236

The allocations based on these various factors and combination

factors are expressed as percentages of whatever funds are

available. The percentages can be compared to determine the

relative effects of these factors and combinations. For convenience, however, the share can also be compared to the current

share when YETP, SYEP and YCCIP are combined. The percentage

change, either postive or negative, relative to this base

suggests how different prime.sponsors are affected by the

factors and combinations.

Data are available for each prime sponsor to calculate the

impacts of these various factors and combinations. For ease

of analysis, however, the shares are cumulated for certain

clusters of prime sponsors with similar characteristics:

1. Prime S ions T e The prime sponsors are divided

into cities, counties, ance-of-State, statewide sponsors,

rural CEP's, and consortia. The allocation shares for Balanceof-state and rural CEP's are suggestive of the impacts of

different factors on rural areas; counties'allocations are

suggestive of suburban inputs; citieslare, of course, representative of urban areas. Every prime sponsor in these categories is not rural, suburban or heavily urban but in general

the conditions hold.

2. Cities. Because of the analysis which indicates a

concentrailZE75f youth labor market problems in the largest

cities, the allocation options are calculated for the 10, 20

and 50 largest cities. Where the prime sponsors representing

these cities are consortia, the entire consortia allocation

is included.

3. Hi -h Une- 0 en- as The clusters include prime

sponsors with unemployment rates above 6, 7 and 8 percent

respectively.

4. Hihi- Po ulated Areas. One cluster includes the

fourth of prime sponsors with the highest population density;

a second includes the top third; the final includes the top

half.

5. Poverty Areas. One cluster includes the fourth of

prime sponsors with the highest incidence of low income families;

a second includes the poorest third; the final includes the

poorest half.

6. Bam.le Prime S onsors. For illustrative purposes,

the allocetiohs un * =er teaternatives are calculated for six

prime sponsors representative of urban, suburban and rural

areas respectively: Atlanta and Los Angeles city; Balance

of Fulton Cour'ty and Los Angeles County; Balance-of-State

Georgia and California.
237

The tables are largely self-explanatory concerning the impacts

of alternative allocation factors and combinations of factors

on the shares going to these various clusters of prime sponsors.

Cities benefit most from formulae which utilize population

density and excess unemployment as well as those applying the

summer hold- harmless. Rural areas benefit from formula

,emphasizing poverty and excess unemployment. Counties and

metropolitan areas benefit from formulae which adopt the

least targeted factors. Areas of excess unemployment benefit from all the concentration formulae; i.e., they tend to

have higher population density and poverty incidences. The

dense population area shares are little affected by poverty

concentration factors and excess unemployment of 7 and 8 percent. The poorest areas do better under all the concentration

factors. In terms of the composite allocation options combining the summer, base grant and Equal Chance Supplement, the

importance of the summer allocation formula for large cities

is clear, as is the impact of the concentration factors in

the Equal Chance Supplement.
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