SOME EVIDENCE ON THE EFFECT OF MANPOWER TRAINING PROGRAMS ON THE BLACK/WHITE WAGE DIFFERENTIAL.

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    • Abstract:
      This article focuses on a study which examined the effect of manpower training programs on the average wage of African American workers relative to the average wage of White workers from 1963 to 1972. The Manpower Development and Training Act of 1962 was passed primarily on the assumption that widespread job vacancies existed and that unemployment could be reduced by training the unemployed to full them. Operating on the erroneous assumption that technological and structural changes in the U.S. economy have caused job vacancies, the designers of the original program stressed the retraining of experienced workers. The social unrest of the middle 1960s and the changing mix of unemployment, however, resulted in the increased enrollment of disadvantaged workers. To many observers, the distributional impacts of the programs are more important than the general efficiency criterion. Despite the admitted importance of the equity criterion, little quantitative evidence on the distributional impact of training programs is available. The factors that will determine the effects of the presence of manpower training programs on the African American/white wage ratio are within the respective labor forces, the proportion that has undergone manpower training, the extent to which manpower training increases the wages of black workers who have undergone training, and difference in the effects of the presence of manpower training programs on the wages of black and white workers who have not undergone manpower training.