Piacc nawb

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Piacc nawb

  1. 1. PIAAC AND WORKFORCE BOARDS Jennifer Hunt Deputy Assistant Secretary for Microeconomic Analysis Department of the Treasury March 31, 2014 JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 1 / 12
  2. 2. ADMINISTRATION INTEREST ADMINISTRATION LABOR MARKET CONCERNS 1 Unemployment Will be temporary Though less temporary than would like 2 Inequality rising since 1979 Inequality rising Wages at bottom stagnating Wages of lower half of males falling JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 2 / 12
  3. 3. HOW COULD PIACC HELP? COULD PIACC ONLINE HELP JOB–FINDING, WAGES? 1 By substituting for existing work–readiness and other exams? E.g. free substitute for Work Keys Current private tests expensive So could expand use of tests if free 2 As demonstration of aptitude To show employer directly To allow WIB to make appropriate recommendations to employer 3 As indicator of future training needed 4 As before/after measure of training effectiveness JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 3 / 12
  4. 4. HOW COULD PIACC HELP? DO WE KNOW SUCH TESTS ARE HELPFUL? 1 No – hasn’t been evaluated 2 No – and test score variation explains little wage variation E.g. variation in AFQT score explains only 15% variation in wages 3 On the other hand PIACC test might be better Some of productivity comes from matching worker with right job So tests perhaps better at measuring raw potential than wage And perhaps better for predicting what training would benefit from? JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 4 / 12
  5. 5. RECOMMENDATION EVALUATE 1 Randomly assign to use of diagnostic versus no diagnostic Or: to use of existing diagnostic versus PIACC 2 Keep track of whether those with biggest score increases before/after training get better jobs faster 3 Draw on expertise of DOL’s Chief Evaluation Officer to do this JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 5 / 12
  6. 6. PIACC’S TASK DATA PIACC’S TASK DATA 1 PIACC has very useful information on tasks workers do Obviously not useful diagnostic for someone not working But international comparison indicates where US has to improve While also painting a brighter picture than the test scores 2 Questions about reading, writing, problem solving etc. on the job JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 6 / 12
  7. 7. PIACC’S TASK DATA INFORMATION–PROCESSING SKILLS AT WORK (AV.) JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 7 / 12
  8. 8. PIACC’S TASK DATA GENERIC SKILLS AT WORK (AV.) JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 8 / 12
  9. 9. PIACC’S TASK DATA GENERIC SKILLS AT WORK (AV.) JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 9 / 12
  10. 10. PIACC’S TASK DATA US TASK RESULTS BY INTERNATIONAL COMPARISON 1 US workers seem to do skilled and complex tasks at work Consistent with high US wages and productivity 2 Work in teams and don’t choose own tasks 3 Large number of workers doing manual tasks Consistent with high inequality of test scores, wages JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 10 / 12
  11. 11. PIACC’S TASK DATA MORE SKILLED TASKS ↔ HIGHER PRODUCTIVITY JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 11 / 12
  12. 12. PIACC’S TASK DATA CAN THIS INFORMATION BE USEFUL FOR TRAINING? 1 Suggests can help bottom workers by getting out of manual tasks 2 Can we train workers such that employers give them task control? Or is that a management practice fully determined by employers? Need more research into whether helps lower paid workers JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 12 / 12

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