Evaluating the Impact of Ceta On Participant Earnings

Abstract

This article summarizes estimates of CETA net impact on labor market outcomes using multivariate matching and weighting. The approach produces a comparison group from the Current Population Survey similar to the treatment sample on higher order interactions of match variables and displays only limited sensitivity to model specification. Unlike other approaches that rely on a priori assumptions, the estimates do not require explicit assumptions concerning the temporary or permanent nature of the "preentry earnings dip. "Statistical tests show the resulting comparison groups to be superior both to random samples of eligibles from the Current Population Survey and to comparison groups derived by statistical matching without replacement. Consistent with program changes, FY 1977 impact estimates were higher than FY 1976 impact estimates.