Performance Management of U.S. Job Training Programs: Lessons from the Job Training Partnership Act

Performance management systems that provide (relatively) quick feedback to program operators play an important role in employment and training programs around the world. This paper brings together evidence on the effects of such systems, drawn primarily from the widely studied U.S. Job Training Partnership Act (JTPA) program. The questions addressed include the effects of performance standards systems on who gets served, on what services they receive, on the technical efficiency of program operation, on the economic efficiency of program operation, and on strategic behavior by program managers to “game” the system. Though incomplete on important dimensions, the available evidence makes it clear that the JTPA standards did little to enhance the impact of the program on employment and earnings, while at the same time inducing attempts to “game” the system by actions such as terminating participants at a time that would maximize measured performance rather than when services are no longer provided. We conclude by drawing policy conclusions from the available evidence and making suggests for future