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INSTITUTE FOR WOMEN’SPOLICY RESEARCH
Briefing Paper
Ariane Hegewisch and Helen Luyri
The Workforce Investment Act of 1998 (WIA) is the primary basis for federally funded workforce develop-
ment. One of its stated purposes it to “increase the employment, retention and earnings of participants…”1
While earnings data suggest that both men and women benefit from WIA services, average earnings among
women who received WIA services are significantly lower than average earnings for men. The data suggest that
women's and men's participation in training for traditionally 'female' and 'male' occupations is a major factor
contributing to the earnings gap between women and men who received WIA services. The gap is not the result
of less extensive WIA services for women. During the current legislative session, Congress will consider the re-
authorization of WIA. It is important to discuss policy measures that would more effectively target resources
to increase female WIA service recipients’ earnings. Improving women’s earnings would help to promote and
sustain the economic self-sufficiency of women and their families during the current recession and beyond.
The Workforce Investment Act of 1998 (WIA) requires states receiving federal workforce development funds to
provide local employment and training services to help individuals, particularly those who are in low paid jobs or are
unemployed because of permanent economic changes, gain lasting employment with sufficient earnings to allow for
‘self-sufficiency.’2It also requires states to collect data on service users, including the type of services received, the
length and type of training provided, and earnings data for individuals in the quarters following their ‘exit’ from
programs (U.S. Government Accountability Office 2008; these data are published annually, by the U.S. Department of
Labor, in the WIASRD Databook and are the basis for this Briefing Paper (Social Policy Research Associates 2005,
2006, 2007, 2008a, 2008b). In addition, the law is intended to encourage regions to conduct labor market analysis
and develop partnerships to identify jobs that are in demand, to analyze the relative pay of these in-demand jobs,
and to train individuals for positions that maximize their earnings potential within the region.
This Briefing Paper examines data for ‘exiters,’ individuals who finished their participation in WIA services, and
considers three levels of WIA services that are available to individuals aged 18 and older. First, ‘core services,’ such
as basic job search assistance or career advice, are open to any individual. Second, ‘intensive services,’ including
in-depth skills analysis, career advice, and the establishment of employment goals and short-term basic skills training,
are available only to individuals who are unemployed or who are employed in jobs with earnings that do not allow
for self-sufficiency. Third, ‘training,’ the highest level of support, which is either provided by certified training
organizations or acquired on-the-job, is open only to individuals who require more substantial skills training and
support than available under ‘intensive services.’3
WIA services and data collection differentiate between a general category of ‘Adult Exiters,’ focused particularly
on disadvantaged workers but in principle open to any person seeking employment or training advice; and ‘Dislocated
Worker Exiters,’ who are individuals who permanently lost (or were in danger of permanently losing) their jobs through
plant closures and other circumstances and, as a result, are unlikely to find employment in the same occupation.
Dislocated worker exiters, on average, are likely to be slightly older and have higher pre-program earnings than adult
exiters (Heinrich, Mueser, and Troske 2008).
The Workforce Investment Act and Women’s Progress:
Does WIA Funded Training Reinforce Sex Segregation in
the Labor Market and the Gender Wage Gap?
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Who Receives WIA Services?
In 2007, more than one million adults received WIA-related services, including 765,500 adult exiters and 261,354
dislocated worker exiters (Table 1).4Women were almost half of all adult exiters, and women were the majority of
adult exiters who received intensive and training services. In terms of racial/ethnic background, more than half (53
percent) of adult exiters were white, 29 percent were African American, and 12 percent were Hispanic (of all races)
— data for intensive services or training use by gender and race/ethnic background are not published (Social Policy
Research Associates 2008b, 24). White adult exiters were more likely to be male (56 percent) than female (44 percent),
whereas African American adult exiters were more likely to be female (53 percent) than male (47 percent), and
Hispanic adult exiters were roughly half female (49 percent) and half male (51 percent; Social Policy Research
Associates 2008b, 30). While the numbers of adult exiters overall increased by 227 percent between 2003 and 2007,
the number of adults exiting services after ‘intensive and training services’ increased by only 27 percent, and the
number of those who exited training increased by only 7 percent. This means that the growth in the numbers of adult
exiters during this period was primarily due to increases in the provision of the least intensive services, and the average
length of training provided fell sharply during the same period, from average participation of 41.7 weeks in 2003 to
an average of 15.4 weeks in 2007 (Social Policy Research Associates 2008b, Table II-14).
Between 2005 and 2007 (the latest available data), there was a considerable increase in the number of male and
female individuals classified as dislocated worker exiters. Throughout this time period, the proportion of dislocated
workers receiving intensive services or training was much higher than the proportion of adult exiters receiving these
services. Women were a slight majority of all dislocated worker exiters and of those dislocated worker exiters who
received intensive or training services (Table 1). The majority (53.3 percent) of dislocated workers receiving WIA
services were white. Among women, in 2007, 51 percent where white, 32 percent, Black/African American,
12 percent Hispanic (all racial backgrounds), and 3.5 percent Asian (Social Policy Research Associates 2008b, 114).
2003 2004 2005 2006 2007
ADULT EXITERS 233,892 241,533 252,065 640,525 765,483
Females 130,758 139,115 145,711 304,935 363,529
Percent Female 55.9 57.6 57.8 47.6 47.5
Adults Receiving
Intensive & Training Services 176,192 177,280 178,965 196,290 223,336
Percent Female 57.0 57.4 59.0 56.4 54.3
Adults Receiving
“Training” Services Only 102,950 109,492 105,457 109,528 109,676
Percent Female 59.0 58.2 61.7 58.8 58.0
DISLOCATED WORKER EXITERS 194,122 181,636 242,278 282,178 261,354
Females 98,373 95,647 130,648 149,829 135,276
Percent Female 50.7 52.7 54.5 53.2 51.8
Dislocated Workers Receiving
Intensive & Training Services 164,038 152,902 167,715 148,329 132,571
Percent Female 49.6 52.2 54.5 55.0 53.0
Dislocated Workers Receiving
“Training” Services Only 102,415 95,113 83,699 77,160 66,662
Percent Female 49.9 51.0 53.2 53.6 52.6
Note: * Program Years (PY) 2003 to 2006 include data for people who exited programs between July 1st of the year given to
June 30th of the following year; PY 2007 covers data from April 1, 2007 to March 31, 2008.
Source: IWPR compilation of data from Social Policy Research Associates 2005, 2006, 2007, 2008a, 2008b.
Table 1. Exiters (18 and older) from WIA-Related Services, 2003 to 2007*
2
The Workforce Investment Act and Women’s Progress
Women’s earnings as Male 4th Female 4th
percent of men’s earnings quarter earnings quarter earnings
Adult Exiters 79.5 $7,186 $5,715
Dislocated Worker Exiters 74.1 $8,150 $6,038
Table 2. Earnings for Male and Female Employed Adult and Dislocated
Worker Exiters in 4th quarter after exiting WIA services, PY 2007
Women Have Significantly Lower Earnings than Men Following the Use of WIA Services
Women’s average earnings after receiving any WIA services are significantly lower than men’s, both in the
category of adult exiters and for the group of dislocated worker exiters, who overall are more likely to have received
training or intensive services than only counseling or information services. Earnings data are not available solely for
those who received training. For the adult exiter category, the wage ratio, that is the ratio of female to male earnings
(taking the fourth quarter after exiting services as the reference point) was 79.5 percent; among dislocated workers
the wage ratio was even lower, at 74.1 percent (Table 2).
Adult Exiters Dislocated Worker Exiters
Weeks of Training Received Male (%) Female (%) Male (%) Female (%)
13 weeks or fewer 56.2 36.7 46.2 26.4
14 to 26 weeks 18.3 18.3 16.9 17.6
27 to 39 weeks 9.7 12.0 9.5 12.7
40 to 52 weeks 5.6 9.5 6.5 10.3
More than 52 weeks 10.2 23.6 21.0 33.0
Average weeks on program 21.8 36.7 32.1 47.1
Table 3. Length of Training Received by Adult WIA Service Users, 2007
Published data do not provide information on earnings prior to receiving WIA services (and they include all exiters,
not only those with full-time earnings). A detailed impact evaluation of WIA services, commissioned by the U.S.
Department of Labor, suggests that there were no major differences in earnings gains between male and female WIA
service recipients. Based on an analysis of data in 12 states, the study finds that, compared with similar individuals
who had not received WIA services, both male and female participants benefited from increased earnings following
WIA services by a similar quarterly dollar amount (of $400 on average in the fourth quarter after exiting services;
Heinrich, Mueser, and Troske 2008, 50).5The gender wage gap itself was not the subject of the study, but the findings
suggest that while WIA services do not exacerbate the gap in average earnings between men and women, they also
do not contribute to narrowing the wage gap.
Women Are Likely to Receive More Training than Men but …
Women are more likely than men to have received training, and those women who received training were more
likely to have been in programs of longer duration than men. On average female adult exiters received 36.7 weeks
of training compared with 21.8 weeks on average for male adult exiters (Table 3). Men were more likely to have
participated in training programs for a short duration (56.2 percent received training lasting 13 weeks or less
compared with 36.7 percent of female adult exiters), and women were more likely to have received training of
long duration (23.6 percent of women were in programs lasting at least 52 weeks compared with only 10.2 percent
of men). Among dislocated worker exiters, women were also more likely to have received training for longer than
men (41.1 weeks on average for women compared, 32.1 weeks on average for men).
3
The Workforce Investment Act and Women’s Progress
Source: IWPR compilation of data from Social Policy Research Associates 2008b, Tables II-28 and III-32.
Source: IWPR compilation of data from Social Policy Research Associates 2008b, Tables II-18 and III-21.
“…After receiving
WIA services,
women on
average earned
$1500 to $2000
less per quarter
than men”
“WIA services
do not seem to
exacerbate the
wage gap, but
they also do
not help to
narrow it”
…Women Receive Training for Different
Occupations than Men
Apart from the length of training, there are marked gender
differences in the type of training received by male and female
exiters (Table 4). On the one hand, among adult exiters,
women were more than twice as likely as men to have
received training for managerial, professional, and technical
jobs (43.5 percent compared with 21.3 percent) and more than
three times as likely as men to have received training for service,
sales, and clerical occupations (47.4 percent compared with
13.8 percent). Male adult exiters, on the other hand, were
nearly seven times more likely than women to have received
training in installation, repair, production, transportation, and
material moving skills (55.6 percent of males compared with
8.3 percent of females). This gendered occupational distribution
of training is similar for dislocated worker exiters.
4
The Workforce Investment Act and Women’s Progress
0 102030405060
Managerial, technical or professional
Service occupations
Sales and clerical
43.5%
21.3%
30.0%
7.1%
17.4%
6.7%
9.3%
8.3%
55.6%
0.8%
Percentage
Farming, fishing, forestry, construction, and extraction
Installation, repair, production, transportation,
material moving skills
010 20 30 40 50 60
Managerial, technical or professional
Figure 1b: Occupational Breakdown of Training
for Dislocated Worker Exiters, 2007
Figure 1a: Occupational Breakdown of Training
for Adult Exiters, 2007
Service occupations
Sales and clerical
41.3%
27.9%
24.0%
4.9%
26.9%
4.7%
7.1%
7.0%
55.2%
0.8%
Percentage
Farming, fishing, forestry, construction, and extraction
Installation, repair, production, transportation,
material moving skills
Female
Male
Female
Male
Source: IWPR compilation data from Social Policy Research Associates 2008b, Tables II-18, III-21
“…women were more than three
times as likely as men to have
received training for traditionally
female occupations in services,
sales or clerical work; men were
more than seven times more
likely to have received training
in traditionally male occupations
in transportation or production
and repair…”
5
The Workforce Investment Act and Women’s Progress
“…traditionally
female occupations
pay considerably less
than traditionally
male occupations…”
“… WIA service
appear to contribute
to increasing sex
segregation in the
labor market…”
“…Women were not
made aware of
differences in
potential earnings
during career
counseling. With
better advice, many
say they might have
chosen differently…”
The Role of Counseling Services in Influencing Occupational Outcomes
Some argue that the nature of occupational training received by men and women
simply reflects male and female preferences. However, research conducted by Negrey
and her colleagues (2000) on occupational training, counseling, and training decisions
of low-income women found that, while indeed many women said they were not
interested in non-traditional skills, women who said they would be interested in
non-traditional training significantly outnumbered women who were actually referred
to non-traditional job training. Moreover, many of the women surveyed said that: they
were not aware of the differences in potential earnings when they began their training,
information on the likely wages and benefits in an occupation was not usually part of
the career advice they had received, and, had they seen more detailed information, they
might have pursued training for different occupations. While the research found that
many counselors were happy to refer people to programs that they thought responded
to the clients’ interests, they were also unlikely to proactively suggest alternative
programs that might lead to higher earnings.
WIA Services Provide Only Minimal Training for ‘Non-Traditional’ Skills
Only a tiny minority of adult or dislocated worker exiters, fewer than 3 percent, were
employed in non-traditional jobs (defined as employment where 75 percent or more of
employees are of the opposite sex) following WIA funded training; among all adult WIA
service users the proportion is less than 1 percent (Social Policy Research Associates
2008b, Tables II-14 and III-15). In the labor force as a whole, Current Population Survey
data show that 5.6 percent of all male and female workers are employed in non-traditional
occupations; thus WIA services appear to contribute to increasing sex segregation in the
labor market.6Under WIA, governors are, in principle, able to fund the “implementation
of programs to increase the numbers of individuals training and placed in non-traditional
employment” by making use of their discretionary powers to allocate up to 15 percent of
total state-wide WIA funding for training programs of their choice. Yet according to the
latest analysis available, only six states used these set-asides for non-traditional skills
programs (U.S. GAO 2002, 55).
WIA Funded Training Trains Women for ‘Women’s Jobs’ and Men for ‘Men’s Jobs’
The occupational distribution of training received by men and women using WIA
services closely resembles gender segregation in the broader labor force. In the labor
market overall, women are 75 percent of all clerical and administrative workers, while
men are more than 90 percent of all precision production, craft, and repair workers; more
than 90 percent of all transportation and moving workers; and more than 95 percent of all
construction workers (U.S. Department of Labor 2009). On average, traditionally female-
dominated occupations (occupations where women are more than 75 percent of the
work force) pay considerably less than traditionally male-dominated occupations
(occupations where men are more than 75 percent of the workforce; Institute for
Women’s Policy Research 2009). Male-dominated occupations also generally
provide higher earnings than female dominated occupations requiring similar
levels of qualifications (England 2005). For example, median weekly earnings
for truck drivers were $554 in 2008, compared with $451 for secretaries (U.S.
Department of Labor 2009).
6
The Workforce Investment Act and Women’s Progress
Conclusion
Women who entered employment after they received WIA services, on average, earned
close to $1,500 less per quarter than their male counterparts, and women who received
services as dislocated workers earned over $2,000 less than their male counterparts.7The
available data suggest that traditional gender segregation in training, which provides men
with training for male-dominated occupations and women with training for female-domi-
nated occupations, is a significant factor in accounting for this earnings gap because it
perpetuates existing gender segregation in the labor market.
The pending WIA reauthorization provides an opportunity for Congress to improve
gender equity in the provision of services. First, the reauthorization should require
better data collection and analysis that would allow for a more precise assessment of the
reasons for the gender wage gap that persists among workers who received WIA funded
services. These data should include an assessment of racial and ethnic differences by sex,
which are not currently attainable through published data sources. Second, the reautho-
rization should require more research and monitoring to fully understand the factors behind the stark occupational
segregation in training services received by WIA clients, and to determine whether more differentiated and proactive
advice on typical earnings and benefits in different occupations would change outcomes. In addition to better and
more targeted information, the reauthorization should provide for more dedicated training services to facilitate
women’s greater access to non-traditional occupations, including the creation of incentives for the sharing of best
practices and the replication of programs with a high success rate of placing women into non-traditional occupations.
WIA services are funded with the goal of achieving both increased earnings and enhanced self-sufficiency for serv-
ice users. Without greater attention to the causes of the gender earnings gap, the goal of self-sufficiency is likely to
remain elusive for many women and their families.
For more information about IWPR reports or membership, please call (202) 785-5100,
e-mail iwpr@iwpr.org, or visit www.iwpr.org.
The Institute for Women’s Policy Research (IWPR) conducts rigorous research and disseminates its findings to
address the needs of women, promote public dialogue, and strengthen families, communities, and societies. The
Institute works with policymakers, scholars, and public interest groups to de sign, execute, and disseminate research
that illuminates economic and social policy issues affecting women and their families, and to build a network of
individuals and organizations that conduct and use women-oriented policy research. IWPR’s work is supported by
foundation grants, government grants and contracts, donations from individuals, and contributions from organiza-
tions and corporations. IWPR is a 501 (c) (3) tax-exempt organization that also works in affiliation with the
women’s studies and public policy programs at The George Washington University.
Ariane Hegewisch is a Study Director at the Institute for Women’s Policy Research and Helen Luyri is an independent
consultant in Washington, DC. Financial support for this Briefing Paper was provided by the Ford Foundation, the
Annie E. Casey Foundation, and the Bill & Melinda Gates Foundation.
“…without greater attention to
the causes of the gender earnings
gap after WIA services, the goal
of self-sufficiency is likely to
remain elusive for many women
and their families…”
“… more reseach
is needed to
understand the
factors behind the
stark occupational
segregation in
WIA services for
men and
women…”
References
Baider, Allegra. 2008. Congressional Action Needed to Ensure Low-Income Adults Receive Critical Employment and
Training Services under the Workforce Investment Act. Washington, DC: Center for Law and Social Policy.
England, Paula. 2005. “Gender Equality in Labor Markets: The Role of Motherhood and Segregation,” Social Politics:
International Studies in Gender, State and Society 12(2): 264-288.
Heinrich, Carolyn J., Peter R. Mueser, and Kenneth R. Troske. 2008. Workforce Investment Act Non-Experimental Net Im-
pact Evaluation. Final Report. Employment and Training Administration, U.S. Department of Labor, ETAOP 2009-10,
December. <http://wdr.doleta.gov/research/keyword.cfm?fuseaction=dsp_resultDetails&pub_id=2419&mp=y>
(October 22, 2009).
Institute for Women’s Policy Research. 2009. The Gender Wage Gap by Occupation. Fact Sheet. Washington, DC: Institute
for Women’s Policy Research.
Negrey, Cynthia, Stacie Golin, Sunhwa Lee, Holly Mead, and Barbara Gault. 2000. Working First but Working Poor: The
Need for Education and Training Following Welfare Reform. Washington, DC: Institute for Women’s Policy Research
and NOW Legal Defense and Education Fund.
Social Policy Research Associates. 2005. Program Year (PY) 2003 WIASRD Data Book
<http://www.doleta.gov/Performance/results/PY_2003_WIASRD_Databook.pdf> (October 22, 2009).
Social Policy Research Associates. 2006. Program Year (PY) 2004 WIASRD Data Book
<http://www.doleta.gov/performance/Results/PY_2004_WIASRD_Databook.pdf> (October 22, 2009).
Social Policy Research Associates. 2007. Program Year (PY) 2005 WIASRD Data Book
<http://www.doleta.gov/performance/Results/PY_2005_WIASRD_DataBook_Rev%208-14-2007.pdf> (October 22,
2009).
Social Policy Research Associates. 2008a. Program Year (PY) 2006 WIASRD Data Book
<http://www.doleta.gov/Performance/results/PY2006_WIASRD_Data_Book_Revised_31708.pdf> (October 22, 2009).
Social Policy Research Associates. 2008b. Program Year (PY) 2007 WIASRD Data Book <http://www.doleta.gov/perfor-
mance/results/pdf/PY2007_WIASRD_Data_Book.pdf> (July 13, 2009).
U.S. Department of Labor (DOL), Bureau of Labor Statistics. 2009. “Median Weekly Earnings by Detailed Occupation
and Sex, 2008 Annual Averages.” <http://www.bls.gov/cps/cpsaat39.pdf> (July 13, 2009).
U.S. Government Accountability Office (GAO). 2002. Workforce Investment Act: Better Guidance and Revised Funding
Formula Would Enhance Dislocated Worker Program. Washington, DC: U.S. Government Printing Office.
U.S. Government Accounting Office (GAO). 2008. “Workforce Investment Act: Labor Has Made Progress in Addressing
Areas of Concern, but More Focus Needed on Understanding What Works and What Doesn’t.” Statement of G. Scott to
HELP Committee <http://www.gao.gov/new.items/d09396t.pdf> (October 22, 2009).
Notes:
1Public Law 105-220: Workforce Investment Act 1998, SEC. 106
2See Public Law 105-220: Workforce Investment Act of 1998, Section 134 onwards; the Act does not include a specific
definition of “self-sufficiency.”
3For a more detailed description of each service category and target participants, see Baider 2008. WIA also provides
services for youth; this fact sheet exclusively discusses adult participants.
4A small proportion of adult exiters (2.1 percent) were co-enrolled as dislocated workers (Social Policy Associates 2008, 50).
5The study suggests that earnings gains have different long-term dynamics for men and women with men seeing earlier
gains, compared to other males, after exiting services, than women, but that these gains diminish in the longer term,
while for women gains are initially smaller but more sustained. While the study examines earnings trajectories
separately for men and women, its focus was to compare earnings changes between individuals who received or did
not receive WIA services, not on examining differences in earnings between men and women.
6Calculated by IWPR based on data in U.S. DOL 2009.
7See Table 2 above; data for PY 2007, for people who had completed WIA services four quarters earlier.
7
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