The Effects of Cash-Plus-Job-Training Programs on Young Adults: Evidence from a Randomized Controlled Trial

The intervention is a program implemented by LA DPSS in which work-ready young adults aged 18 to 24 receive an unconditional guaranteed income in addition to job-training and apprenticeship opportunities for 36 months. The treatment group is receiving an unconditional cash transfer of $1,000 per month and is being offered the opportunity to participate in the TAYportunity program. The TAYportunity program consists of the following paths that interested participants can choose between (1) transitional subsidized employment for six months, 40 hours per week, at a rate of $15/hr; (2) apprenticeships in fields of construction, aero-space and bioscience; or (3) entrepreneurship support for participants interested in self-employment. Transfers are being made through participants’ electronic benefit transfer cards. Participants have been given full information regarding the magnitude of the transfers they will be receiving, when they are receiving those transfers, and the date on which transfers will end.

2022-08-25

2026-02-15

Labor hours supplied in the past month, income earned in the labor market in the past month, total expenditure, educational attainment, financial security, psychological well-being

Food security, housing security, value of savings, value of debt

Over 3,211 individuals applied to the TAYportunity plus Guaranteed Income Program. Of those 3,211, LA DPSS randomly selected (with help from the research team) 300 individuals into its program. Additionally, the research team randomly selected 650 individuals from the applicant pool who were not selected for the program to serve as the control group. The 300 treatment individuals were informed by LA DPSS that they have been selected for the program and have been invited to participate in a survey study. The 650 control individuals were contacted by LA DPSS and were informed that while they were not selected for the program, they have been invited to participate in a research study about their experience in the GROW program and in the labor market as a young adult in Los Angeles County. Throughout the 36-month program we will conduct several short, 15-minute surveys of all 950 study participants that will be completed online or by phone. The surveys will be the same as across survey rounds, so that we obtain repeated measures of the same outcomes over time. All respondents will be compensated $20 for completing each of the surveys.

Not available

The randomization was done in office by a computer. Stata was the program used to randomize.

Randomization was done at the individual level.

No

950 individuals

950 individuals

300 individuals are in the treatment group, and 650 individuals are the in the control group

The required sample size was computed as follows. Desired power was 80%, at a significance level of 5%. We assume a 20% attrition rate and a correlation between multiple midlines of 0.5 (a higher correlation is conservative). Using these parameters, a control group of 650 and a treatment group of 300 households yield a minimum detectable effect size (MDE) for the treatment group relative to control of 0.17 standard deviations (SD). When we allow for multiple hypothesis testing, the MDE remains relatively low. Using Haushofer and Shaprio (2016) as reference, we obtain a FWER-adjusted target significance level of 3%. Repeating these power calculations with all other assumptions unchanged, we find an MDE of 0.19 for the treatment group relative to control.

Pre-Analysis Plan -- The Effects of Cash-Plus-Job-Training Programs on Young Adults: Evidence from a Randomized Controlled Trial