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REFINEMENTS OF AVAILABLE EMPLOYMENT AND
EARNINGS MEASURES


This section covers six topics that are expected to be high on most lists of candidates for improvement of available outcomes' concepts and measures:
  1. The definition and measurement of training-related employment

  2. The accurate alignment of timing of school-leaving, employment status, and employer affiliation

  3. The timely and reliable documentation of continuing education

  4. A basis for reaching consensus on decision-rules to be used when multiple employer affiliations are reported for a single observation period

  5. Criteria for reaching agreement on rules to censor available earnings data to reflect full-time/part-time distinctions

  6. Specification and estimation of models of employment and earnings outcomes, which can be expected to support defensible conclusions about the employment and earnings outcomes of vocational education
Here, coverage of a topic means that the issue is addressed and that progress has been made; not that the authors believe that any of the six concerns has been put to rest.

Defining and Measuring Training-Related Employment

The concept of training-relatedness has a certain cachet in vocational education. There is a pervasive assumption that it constitutes a practical performance measure, which serves as a metric that can be applied across curriculum, educational level, governance, and geographic boundaries, and interpreted in a routine manner by non-experts. This section challenges the accuracy of this assumption, but it also offers suggestions about how to proceed if one decides to persist.

The Challenge

Previously, the test of a concept's validity was described in terms of evidence that it actually represents what the investigator intended to measure. Here, a second, more stringent criterion is added to this test: Different users of the concept should exhibit a high level of agreement on the classification of real cases when the concept is applied. A two-stage test of validity is proposed:
  1. Do available decision-rules for carrying out the assignment of training-relatedness designations result in a high level of agreement when actual cases are classified by different coders?

  2. If so, does this assignment of cases reveal what multiple users want to know?
Both criteria must be satisfied for the concept, or classification taxonomy, to be endorsed. These two conceptual criteria must be supplemented with two procedural criteria before adoption for routine use:
  1. Is a practical data collection method available?

  2. Is the cost of this data collection activity less than the benefit that is expected to accrue in the form of better management decisions?
Recent and continuing reengineering of organizational designs and missions in both the business and education sectors combine to threaten the confidence anyone can have in answering any of these questions affirmatively.

From an employer requirements perspective, employee job descriptions encompass far more elements than in previous decades. Some of these tasks are performed on a routine daily basis, while others are held in reserve for periodic or emergency use. Much of the precision of job description has been lost in many sectors of the Nation's economy.

It is useful to recall that codification of job descriptions in the U.S. escalated during the 1930s, associated with the emergence of formal labor-management negotiations in major industries, and with the dominance of manufacturing production activities as the engine of the economy. The decline of organized labor's influence and representation, coupled with the growth of service sector employment, leaves employers with a substantially higher level of discretionary leeway to design personnel assignments in more flexible ways; thus, the blurring of job descriptions. This means that it is more difficult for anyone, novice and expert alike, to routinely identify particular employees by a short-list of competency requirements that distinguish them from other employees.

Similarly, from a candidate qualifications standpoint, the ongoing integration of so-called vocational and academic curriculums is erasing long-standing, clearly defined boundaries. This source of difficulty, from a classification perspective, is compounded by the rapid growth of niche enrollment patterns. Students are being allowed, and often encouraged, to assemble customized programs of study. This trend makes sense in the context of present and anticipated workforce opportunities, but it threatens the integrity of current management information systems vis a vis the routine documentation of a manageable number of vocational modules.

When these forces are considered together, it is apparent that current classification taxonomies are in trouble. This vulnerability has been recognized in many quarters of the federal establishment (see U.S. Department of Labor, 1993; Standard Occupational Classification Revision Policy Committee, 1995). The pilot phase of a revision of the Nation's Dictionary of Occupational Titles is underway. A database design, to be known as 0*NET, is being developed that is expected to include more than one-hundred descriptors for each occupational entry. These descriptors, and the occupational entries themselves, will be updated as new information becomes available, rather than having to wait for comprehensive updates of the entire taxonomy at widely spaced intervals. Also underway are revisions of the SIC (Standard Industrial Classification), Occupational Employment Statistics (OES), Standard Occupational Classification (SOC), and Classification of Instructional Programs (CIP) taxonomies. These partially overlapping, but not coincident, modifications will advance the quality and increase the value of data that is collected; but these changes will also render a substantial number of documents and software products obsolete. The vocational education community has an opportunity to anticipate these revisions and to adapt reporting systems accordingly, but this aperture will close within two to four years.

These challenges should motivate a review of the entire exercise of training-relatedness measurement. The desire to measure may be burning at a stable historical level, or even at a higher level of intensity as the Nation rides the current wave of interest in educational accountability; but the ability to respond to this desire is wavering.

The Current State-of-the-Art

Florida's Education and Training Placement Information Program (FETPIP) has made a substantial investment in the collection of occupational information through mail survey questionnaires. Their treatment of training-related employment is used here, in a series of four tables, to illustrate how a tested classification method can be used with state employment security agency employment and earnings records to prepare tabulations that are sought by administrative, legislative, and other groups.

Based on the linkage of a student record with a wage record the FETPIP identifies the Florida employers who reported these former students as employees. A stratified sample of these businesses is drawn and questionnaires are mailed asking the employers to report the occupation of each designated employee. The fourth quarter of the year of school-leaving is currently used as the reference quarter for this purpose. The FETPIP has created a set of Occupational Employment Statistics Program codes for each of the state's major industrial sectors. The appropriate version of these codes is sent with each mailing to an employer, who is then offered the option of using one of these codes for each designated employee, or entering a job title. The latter are then coded by FETPIP staff members using their own software design to assign the same code to all cases of the same job title once a single decision has been made. The FETPIP considers all aspects of this coding exercise to be of a pilot, or development phase, nature.

Table 1 displays the actual coding of training-relatedness of reference quarter employment for 1990-1991 community college vocational program completers. Four assignment methods appear in Table 1.

  1. Based on Job Title--The responding employers either used one of the OES codes provided with the questionnaire, or wrote in a job title or brief job description, in which case the FETPIP staff assigned a training-relatedness code.

  2. Based on Industry Only--Used as a residual option only when no usable job title/description information was provided by the responding employer. The FETPIP has established criteria for this assignment of a training-relatedness code.

    Washington's State Board for Community & Technical Colleges has also experimented with the use of an industry-based coding of training-relatedness, based on the appearance of Occupational Employment Survey staffing pattern cells,

    in particular industry/occupation matrices. The acknowledged problem with this approach is that it simply asserts that because incumbent employees were reported in an industry/occupation cell when the reference staffing pattern survey was conducted, it will be assumed that the former student in question, who is known from state employment security agency records to have been reported as employed in that industry, may be working in one of the training-related occupations. The Board's attempted use of this approach exemplifies the pressure that exists to devise some way to provide a metric of this type.

  3. Unable To Determine--A third-stage assignment, which is used when neither a job title nor industry only code can be identified.

  4. Not Employed in the Reference Quarter--Includes those former students who were not found in the linkage of student records and state employment security agency wage records.
Three training-related designations are used: (1) directly related; (2) somewhat related; and (3) unrelated.

Table 1

Training-Related Employment

1990-1991 Community College Vocational Program Completers

Training-Related Percentof Percent of Percentof
Determination Method Outcome N Total Employed Subtotal
Based on Job Title
Directly Related
5,479
38%
50%
65%

Somewhat Related
977
7%
9%
11%

Not Related
2,060
14%
18%
24%

Subtotal
8,516
59%
77%
100%
Based on Industry Only
Related
971
7%
9%
81%

Not related
224
9%
2%
19%

Subtotal
1,195
16%
11%
100%
Unable To Determine

1,337
27%
12%

Not Employed in the Reference Qtr.

3,361
35%

Total

14,409
100%


Notes: The reference quarter is 1991:4.
"Percent of Total" is the percentage of the total population.
"Percent of Employed" is the percentage of the former students who were reported as employed in 1991:4.
"Percent of Subtotal" is the percentage within each category defined by the relatedness determination methods.
The "Based on Industry Only" rows include only those whose job titles were not available.
The "relatedness" approach used to prepare this table was provided by Florida's Employment and Training Placement Information Program.
The approach is considered to be in a pilot use phase and is subject to future refinement.

The omission of the somewhat related category from the industry only assignment method reflects the FETPIP staff's unwillingness to adopt such an aggressive classification approach.

Three columns of results are presented in Table 1:

  1. Percent of Total--Distributes all of the 1990-1991 reference group community college vocational program completers among the five determination method categories.

  2. Percent of Employed--Distributes only those reference group members who had been reported to the state employment security agency as employed during the reference quarter.

  3. Percent of Subtotal--Distributes, within subgroup, only those who have been assigned a training-relatedness code on the basis of either the job title or industry only method.

Beginning at the bottom of the "Percent of Total" column in Table 1, 35% of the reference group of former community college students were not found in the state employment security agency's 1991:4 wage records. This stand-alone figure based on one snapshot of employment status does not reveal which of these students may have been reported as employed during previous or subsequent quarters, or how many were registered in other public higher education institutions in Florida. The FETPIP has introduced numerous innovations to reduce the number of unknowns in its reports. Table 1 is not designed to reflect these refinements. Another 27% of the original reference group had not been classified, but this represents only 12% of those who had been reported as employed (refer to the last figure in the middle column of Table 1). This leaves two groups of the former students who were successfully classified using one of the two determination methods--16% on the basis of the industry only method, and 59% using the job title method.

For many reporting and management decision purposes, the middle and right-hand columns are more useful than the "Percent of Total" column. However, it is always important to be able to account for all members of an original reference population, so detractors are not allowed to falsely assert that there must be a devious reason why some have been omitted from a tabulation. The upbeat news in the middle column is that 77% of the former students who had been reported as employed during 1991:4 were successfully assigned to a training-relatedness category using the job title approach, and another 11% were assigned using the fall-back industry only method.

The only number that many interested parties will look for and remember is the top figure in the middle column--the percent of those who were reported as employed in 1991:4 and were determined to be working in a directly related job. Many of those who seek this single number are likely to depart without recognizing the importance of the number at the top of the right-hand column: Two-thirds of those who could be assigned a training-relatedness status using the job title method were assigned to the directly related category.

Table 1 typifies one reason why vocational educators are distributed along a continuum of enthusiasm about the use of state employment security agency employment data, and associated attempts to assign training-relatedness designations to these jobs. There is something in this tabulation for everyone. Detractors can point to the not employed, unable to determine, and not related cells. Advocates can focus on the directly related and related cells. This is why either of two alternative approaches is encouraged--do nothing or do more.

Table 2 illustrates one way in which FETPIP has done more. This tabulation replicates the Percent of Total column from Table 1 for each of six postsecondary vocational programs. This choice of presentation format reflects the anticipated interests of likely readers of this volume. It does not represent the recommended selection for a press conference.

Table 2

Training-Related Employment

1990-1991 Community College Vocational Program Completers by Program

Determination
Method
Training-Related
Outcome
Office
Occs.
Engineering
Technology
Allied
Health
Health &
Medical
Sciences
Child Care/
Food Service
Protective
Services


N
%
N
%
N
%
N
%
N
%
N
%
Based on Directly Related 102 8% 121 18% 1,638 40% 1,541 65% 38 19% 1,512 55%
Job Title
Somewhat
Related
159
13%
72
11%
191
5%
53
2%
23
11%
271
10%

Not Related
343
27%
134
20%
503
12%
19
1%
28
15%
390
14%
Based on
Related
19
2%
27
4%
444
11%
325
13%
21
11%
6
1%
Industry Only
Not Related
2
0%
4
1%
92
2%
1
0%
3
1%
62
2%
Unable To Determine

229
18%
102
15%
244
7%
142
6%
15
7%
165
6%
Not Reported as Employed in the Reference Quarter

403
32%
219
31%
940
23%
302
13%
73
36%
339
12%
Total 1,257 100% 679 100% 4,052 100% 2,383 100% 201 100% 2,745 100%

Notes: The "relatedness" approach used to prepare this table was provided by Florida's Employment and Training Placement Information Program.
The approach is considered to be in a pilot use phase and is subject to future refinement.

The comparative data presented in Table 2 exemplifies the theme of the entire volume: Available data can be organized in ways that support and promote local and state management diagnostics--formats that may be unrelated to required federal reporting or to responding to constituent inquiries. Here, the word diagnostics is meant to convey a motive of behind-the-scenes troubleshooting or curiosity, rather than triggering a public argument about the accuracy and relevance of particular numbers. Note, for example, that the range of combined not employed/unable to determine cases extends from a high of 50% to a low of 18%. Awareness of this pattern alone is cause for management action to learn more about why, and whether, anything should be done to try to reduce this disparity. Note that the terminology used here is whether anything should be done, not what should be done. The disparity may be traced to origins that do not warrant corrective action.

Table 3 probes to a deeper level of understanding of the training-relatedness issue. Four post-schooling measures of employment status and earnings are reported by each of the relatedness categories:

  1. The percentage of each subgroup of former students who were reported as employed by a different employer at some time during 1992 than had been used as their reference affiliation in 1991:4

  2. The average length of first job held, in quarters

  3. The average level of reported earnings during the reference quarter, 1991:4

  4. The average level of reported earnings one year after the reference quarter, or 1992:4
Table 3

Training-Related Employment

1990-1991 Community College Vocational Program Completers Earnings and Mobility

Different Employer
in 1992
First Job Length
(Qtrs)
Earnings in 91:4 ($) Earnings in 92:4 ($)
Relatedness N Rate Sig. Test Mean Stderr Mean Stderr N Mean Stderr
Directly Related 5,479 0.26

5.06
0.02
$5,826 $39
4,967 $6,625 $45
Somewhat Related 977
0.26
Chi-sq=138.3 5.07
0.05
5,241
87
900
6,016
103
Not Related 2,060 0.39
P=0.000
4.29
0.04
3,523
61
1,702 4,479
77











Industry-Related 971
0.3
Chi-sq=21.1 4.84
0.05
5,376
101
852
6,651
118
Industry-Not-Related 224 0.46 P=0.000 3.99 0.12 3,192 197 187 4,741 259











Unable To Determine 1,337 0.35 4.47 0.05 4,328 86 1,062 5,728 112

Notes: A "different employer" is defined as any employer identification code other than that of the reference quarter, which determined the training-relatedness code.
The "relatedness" approach used to prepare this table was provided by Florida's Employment and Training Placement Information Program.
The approach is considered to be in a pilot use phase and is subject to future refinement.

Table 3 reveals as low a turnover rate, as long an average length of first job held, and a higher average earnings level during the 1991:4 reference quarter, for the directly related subgroup relative to each of the other five designations. A statistically significant difference in turnover rate and average length of first job, favoring the directly related subgroup, is found in a comparison with the not related subgroups alone.

The turnover rate and average length of first job, as these appear in Table 3, are not independent events. Also, care must be exercised in defining length of first job. Here, it means the number of quarters after a former student leaves school during which the reported employer affiliation is the same. Even this seemingly straightforward definition can become complicated, when it is realized that the appearance of more than one wage record in a quarter may indicate that an employee has moved between employers during the quarter. Also, for some reporting purposes, the pre-school-leaving quarters of employer affiliation may be considered relevant.

One year after the reference quarter of 1991:4 the initial earnings advantage enjoyed by the members of the directly related subgroup (determined using the job title method) has been closed by the industry-related subgroup. This is the type of finding that should trigger further inquiry: What explanation comes to mind for this pattern? Is information conveyed by an industry affiliation that has potential value as a predictor of a former student's long-term earnings prospects? If so, this readily available data element, which is contained in state employment security agency records (but not in the wage record database in most cases) can be used for selected analytical and reporting purposes.

Table 4 represents a preliminary attempt to investigate the potential value of the readily available Standard Industrial Classification (SIC) code as a complement to, and perhaps even as a substitute for, the costly and often challenged documentation of training- relatedness. Each column of numbers in Table 4 presents regression coefficients for variables that might reasonably be thought to be correlates of differences in reported earnings during the reference quarter of 1991:4. The basic purpose for this specification is to explore how the coefficients for training-relatedness and SIC code behave together and separately. The results indicate that the industrial classification variable absorbs enough
of the training-relatedness variable's explanatory power that some signs change and the statistical significance of some correlations is lost.

Table 4

Training-Related Employment as a Predictor of Earnings

1990-1991 Community College Vocational Program Completers

Dependent Variable

Earnings in 1991:4

Earnings in 1991:4

Earnings in 1991:4
Regression Type
Linear Regression

Linear Regression

Linear Regression
Number of Observations

11,048



11,048



11,048

R-squared
0.5505

0.5452

0.5432
Population
Employed in 1991:4

Employed in 1991:4

Employed in 1991:4

Estimates
P-Value
Estimates
P-Value
Estimates
P-Value









Intercept
-1,349.046
0.001
-624.243
0.112
-1,593.289
0.000
Demographic Variables







 Male
348.224
0.000
358.952
0.000
336.845
0.000
 African American
-379.172
0.000
-359.124
0.000
-396.685
0.000
 Hispanic
78.941
0.374
124.937
0.162
65.466
0.464
Vocational Program








 Agriculture
126.173
0.802
-184.914
0.714
245.031
0.628
 Office Occupations
-81.097
0.322
-67.847
0.410
-182.215
0.025
 Engineering
 Technologies
-98.290
0.335
-104.061
0.310
-144.063
0.160
 Allied Health
75.909
0.143
-4.262
0.934
121.823
0.016
 Medical Science
2,308.255
0.000
2,226.776
0.000
2,465.415
0.000
 Child Care/Food
  Service
-675.754
0.000
-817.925
0.000
-656.258
0.001
Local Economic
 Conditions








 Local-Avg.-Earn ($)
1.120
0.000
1.017
0.000
1.115
0.000
Pre-Graduation Job Info.







 Pre-Job
-801.805
0.000
-806.899
0.000
-789.015
0.000
 Earnings in 1991:2
0.602
0.000
0.614
0.000
0.611
0.000
1991:4 Job Relatedness








 Directly Related
226.717
0.003
662.065
0.000


 Somewhat Related
100.867
0.280
478.926
0.000


 Not Related
-496.435
0.000
-274.206
0.000


 Industry Related
-112.215
0.256
347.044
0.000


 Industry Not Related
-686.582
0.000
-538.108
0.000


Industry Information








 Avg. Earnings ($)
0.137
0.000



0.175
0.000
 Standard Error of Avg.
  Earn.
-0.701
0.098



-1.220
0.004

Notes: Italic indicates a 0-1 dummy variable.
Local-Avg-Earn is the average 1992:1 earnings of all 1990-1991 of the state's high school and community college students by groups of counties chosen by the authors.
Pre-Job refers to the job held by individuals in 1991:2.
Industry-Specific Avg. Earnings are based on two-digit SIC code. The 1991:4 earnings of all workers (in a different state for which the necessary data was available) are used to calculate the average earnings and standard error of the average earnings.

This brief excursion through the topic of training-related employment is intended to increase reader awareness of the complexity of the issue, but also to indicate some promising paths for future inquiry. The priority that is given to this issue ranks right behind the placement measure based on a management support criterion. Since the two concepts are traditionally paired in management use, together they warrant the highest available designation for serious attention.

Alignment of Enrollment and Employment Affiliations

Up to now, this topic has received less attention than the training relatedness and placement issues. But this is largely because the importance of the matter has not been known or widely discussed. The third major section of this guide described why the topic should now be elevated to a higher level of visibility and discussion. Concurrent enrollment and employment must be considered in any meaningful discussion of vocational education outcomes. Previous employment has to be considered for adults. While school-year units of analysis sufficed in the past, a better alignment of the timing of school-leaving, employment status, and employer affiliation is now needed.

A typical vocational education follow-up design identifies a reference population of former students, usually a school-year of leavers, and carries out a single snapshot of their employment status during some interval soon after this. Adoption of this approach in high school settings is of minor concern because most seniors who graduate do so during May or June; but there are many reasons why an investigator might want to know the year/month of last school attendance for those who leave without receiving a diploma.

Figure 8 shows why such complacency is not justified in the case of community college inquiries. Each of the four panels in Figure 8 represents one subgroup disaggregated from a total of 6,491 vocational program completers in school year 1989-1990. Those in the top panel, 10.4% of the total, left school in the summer quarter (July-September 1989). Those in the next panel, 21% of the total, left in the fall quarter (October-December 1989). The third panel from the top represents 14.3% of the full year's class who left in the winter quarter (January-March 1990). And the bottom panel covers the 54.3% who left in the traditional spring quarter (April-June 1990).

The asterisk in each of the four panels represents the July-September 1990 quarter, which can be thought of as a snapshot of the percent of the reference subgroup of former students who were reported as employed in this quarter. Note that for the 1989:3 graduates, this is the fourth full quarter following school-leaving; while for the other three subgroups of the class of 1989-1990, this is the third, second, and first full quarter after leaving school respectively.

Those represented in the top panel had a full year to hold, and perhaps to leave, one or more jobs. Those included in the bottom panel had a maximum of three months, if they left school in June 1990. Nothing more can be said, based on Figure 8 alone, about the sequences of employment affiliations that have occurred.

Figure 9 reveals why the limitations associated with Figure 8 should be of concern from a management support perspective. Here, a seven-quarter reference period is identified for each member of the 1989-1990 community college vocational program completer population. Keep in mind that the particular seven-quarters differ among the four subgroups of summer, fall, winter, and spring school leavers. For instance, for the summer 1989 completers, the seven-quarter reference period begins in January 1989 and ends in September 1990; while for the spring 1990 completers, the reference period begins in October 1989 and ends in June 1991. This means that ten quarters of data were required to cover the thirty reference months. This compares with the typical one-quarter coverage of most follow-up designs.

The darker bars in Figure 9 represent the summation of seven sequential snapshots of reported employment status from the state employment security agency's wage records database. The pattern is what might reasonably have been expected, with a stable employment rate during the two quarters prior to completion, which increases somewhat during the school-leaving quarter, and then increases again to a higher stable plateau over the next year. This contrasts with the lightly shaded bars, which reveal a continuous decline in the percentage of former students who are still affiliated with the same employer who
had reported them as an employee during their last full quarter prior to the quarter of vocational program completion.

One important implication of Figures 8 and 9 together is that when a single quarterly snapshot of employment status is recorded for an entire school year's reference population of former students, the probability of capturing the first job held will differ for subgroups within this population. Based on the data that underlie these two figures, the range of sustained employer affiliation would be expected to range between a low of 23% (four quarters following completion) and a high of 38% (one quarter after completion).

The diagnostics reflected in Figures 8 and 9 require more data than is needed for the typical one-quarter snapshot of post-schooling employment status. In this case, ten quarters of data were used. The following issues arise in attempting to conduct this type of investigation:

  1. Most state employment security agencies maintain only the most recent available five quarters of wage records on-line because these are used in the routine conduct of the state's unemployment compensation program. Currently, this statement does not apply to Michigan and New York, which are referred to as wage request states because they request verification of earnings when a former employee files a claim to receive unemployment compensation benefits. Michigan does require employers to submit a quarterly report of employee earnings, but these are not used in the same way that other states use them. Massachusetts is the most recent state to enact wage reporting legislation, so the potential availability of historical coverage will be extremely limited there.

  2. Employers are required by law to submit their report on a particular reference quarter within thirty days of the end of that quarter. The state employment security agency then has at least sixty days to process the data so they are available for administrative use by the beginning of the next quarter. Late reporting does occur, which should be considered in deciding when a request for wage records will be submitted to a state employment security agency.

  3. State employment security agencies have uneven capacities to respond to external requests for information. The authors' ability to perform these diagnostics through the auspices of a small federal grant can be traced to the pioneering, and still unique, agreement between the University of Baltimore and Maryland's Department of Labor, Licensing, and Regulation. This interagency agreement between two branches of state government provides for the archiving and research use of the universe of Maryland's wage records, which currently cover the period from April 1985 through March 1995. The data is maintained in encrypted form in a secure facility managed by The Jacob France Center in the University's Merrick School of Business. The Center's database manager and her research colleagues have each signed an oath acknowledging their awareness of and intention to honor the confidentiality stipulations that apply to these records. Each research use of the data must be approved by an authorized person in the originating Department of Labor, Licensing, and Regulation. The Center's executive director is responsible for assuring that any public release of information conforms to the rule that no individual or reporting entity can be identified, either directly or inferentially, on the basis of available data elements such as sex, race, school attended, year graduated, and program completed. This interagency agreement frees the researchers from the queuing issues discussed earlier. The quid pro quo is that the Department of Labor, Licensing, and Regulation has expanded the timeliness and scope of its own ability to answer questions using this database. Based on this unique agreement, the four-state database that underlies the present discussion was assembled by entering into fourteen agreements with multiple state agencies in the four states for the specific research purpose stated in each agreement. While there is no known precedent for this approach, federal government contractors have engaged in project-specific data acquisition of a similar type. Recently, the Unemployment Insurance Service in the U.S. Department of Labor has taken advantage of the archived data at the University of Baltimore to conduct inexpensive inquiries in a timely manner; investigations that could not have been accomplished as quickly at low cost, and may not have been feasible at all through other sources. Legal issues aside, each agency has multiple internal data processing and reporting obligations. Both predictable seasonal fluctuations, and unpredictable pressures associated with recessions that increase the number of unemployment compensation claimants, will affect the agency's ability to respond. Even established interagency agreements that specify a particular schedule of response times may be ignored when unexpected legislative actions impose new demands on the agency's data processing unit.

  4. The states vary widely in the pricing of interagency requests for record linkages. In many cases, informal understandings of the past have given way to formal agreements. There does not appear to be any commonly followed standard for pricing. Some agency's charge on a per-record-matched basis. Others charge on a per-quarter batch run basis, or on the number of records provided by the external party. Some charge on a marginal direct cost basis, while others include standard overhead rates. Many have different rates for particular categories of request.
Together, these considerations amount to a clarion call for strategic planning of requests for data. Decisions must be made ahead of time about when data is really needed, what historical coverage is required, and what data elements are sought. For example, in most states, the wage record file contains only the three data elements described earlier: (1) employee social security number, (2) employer identifier, and (3) earnings paid to this employee by that employer during the reference year/quarter. Interest in a SIC code, or geographic identifier, requires access to different files maintained by a state employment security agency. Having said this, the importance of sorting out and aligning the timing of school-leaving and employment status will in many cases justify the effort and expense that is involved.

Documentation of Continuing Education

Repeated mention has been made of the need to document a former student's continuing education. The basic point has been that accurate attribution of vocational education outcomes cannot occur without taking into account any other educational pursuits that should be considered as joint-inputs.

The importance of this conclusion is illustrated in Table 5, which displays continuing education information for three populations of vocational program completers. Both high school and area school postsecondary levels are represented here. Three annual classes of completers are presented to offer a sense of the stability of the transition flows that are represented. The sex, race, and age attributes reveal the heterogeneity of the vocational education population.

Table 5

Continuing Education as a Factor in Interpreting Employment and Earnings Outcomes:

Three Classes of High School and Area School Vocational Program Completers

High School

Class of 1989-1990
Class of 1990-1991
Class of 1991-1992
Sex



Female
41%
47%
46%
Male
33%
38%
34%
Race



Asian
63%
62%
54%
African-American
34%
42%
39%
Hispanic
45%
48%
42%
Native American
35%
33%
22%
White
39%
43%
42%
Area School (Postsecondary)



Age



<= 25
17%
22%
20%
26-35
13%
17%
16%
>= 35
11%
14%
14%

Table 5 is based on the reference state's own matching of school district records (vocational completers only) and subsequent reporting of a former student's enrollment in one of the state's higher education institutions. Particular attention is drawn to the sensitivity of the enrollment rate of former African-American students to the 1990-1991 recession; a pattern that is not observed for any of the other groups. This revelation exemplifies how the data can be used to identify possible opportunities for administrative action. In this case, both instructional staff members and counselors can be alerted to the apparent vulnerability of African-American students when economic conditions weaken. Higher education authorities will be interested in the cyclical volatility of their expected enrollments, and the demographic twists that might be expected. They should also be alerted to the possibility that a transition difficulty has been shifted from one educational level to another. The relevance of this concern depends in part on the economic circumstances that arise at the time when these enrollees leave the higher education cocoon.

State governance of public education varies too much to offer detailed recommendations for the steps that should be followed to acquire higher education data. Some states, including FETPIP, are introducing coverage of private postsecondary institutions.

Multiple Employer Affiliations

Two issues are covered in this subsection. The first topic is suggestions about dealing with the presence of multiple wage records for a former student in a particular reference quarter. The second topic is the relevance of a former student's multiple employer affiliations for decisionmakers.

Multiple Wage Records in One Quarter

Again, this occurs when two or more employers report that a particular former student worked for them during the reference quarter. It was noted earlier that most state employment security agencies enter data without considering the actual sequence of employer affiliations. In fact, the state employment security agency usually has no way of knowing this sequence. It was also pointed out previously that the employer affiliations may have occurred simultaneously, not sequentially.

The best practical rule that can be recommended for identifying sequential affiliations is to conduct quarter-to-quarter matches that reveal whether one of the affiliations disappears in the next quarter. If so, then there can be a reasonable presumption that this was a previous employer and that the one that appears in both quarters followed.

The primary job issue is more difficult to clarify because there is no reliable time-unit of employment available (e.g., weeks worked). Different combinations of low earnings and many weeks, or high earnings coupled with just a few weeks of employment, will result in the same total quarterly earnings amount. One approach is to define primary on the basis of multiple quarters of data. If a former student maintains one affiliation continuously, and another only occasionally, then the first job can reasonably be designated as the primary affiliation.

Ultimately, the decision rule that is applied should be based on the specific intended purpose that the investigator has in mind. What may be thought appropriate in one case might be rejected in another situation.

The Relevance of Multiple Employer Affiliations

Strong statements have been made in previous sections that the fundamental notion of a transition from school to work should be reexamined in the context of today's patterns of concurrent enrollment and employment (see Osterman & Ianozzi, 1993). Figure 10 provides a specific example of this phenomenon as a foundation for proceeding.

The two community college vocational programs that appear in Figure 10 were chosen to highlight differences. Neither is representative, or typical, of the entire range of vocational offerings. Indeed, historically, one of the problems in discourse about vocational education has been a failure to distinguish among extraordinarily varied curriculums. Here, a three and one-half year post-graduation reference period is covered.

The first figures that virtually leap off the page are the continuing employer affiliation rates--73% for the completers of the health/medical curriculum, and 54% for the completers of the marketing and retail curriculum. These are the percentages of the respective reference groups who cannot be said to have been placed. There has been no
transition from school-to-work for these former students, at least not in the traditional sense of that term.

A second pairing of numbers represents those who were still employed in what is referred to here as the first job at the end of the three and one-half year reference period--53% of the health/medical program completers and 38% of the marketing and retail program completers. The differences in the combined rates of left- and right-truncation (i.e., continuous employment that started before leaving school and, for some, continued through the end of the observation period) account for the more than six months difference in average length of first job held between the two program completion populations.

Diagnostics of the kind displayed in Figure 10 help an investigator, and any other interested party, to understand the interplay between the school curriculum, enrollees in varied components of this curriculum, and the employment opportunity set that was included in Figure 1 earlier.

Censoring Reported Earnings

A frequently-expressed discomfort in using a state employment security agency's quarterly wage records is an investigator's inability to calculate a wage rate figure that can be compared with other data sources. This subsection presents the results of two types of censoring of available quarterly data, which satisfy some of the needs of vocational education decisionmakers.

Tables 6, 7, and 8 provide a pot pourri of data elements for reader consideration. Two new concepts are introduced here. The first, full earnings, requires a former student to have reported earnings in each of the four quarters of the reference year, and to have earned more than $8,667, which is the appropriately inflated 1989 earnings level that was self-reported in the 1990 Census by those who said they had worked forty hours or more per week for forty-eight or more weeks during the year, and who fell at the 5% point in the lower tail of the distribution of earnings for this group. The 5% in the lower tail of the distribution was chosen to eliminate outliers that might be questioned as data entry errors or special circumstance cases. This concept is intended to include only those who have reported earnings in each of the four quarters and who earned at least as much as the members of this comparison group of low-earners among all respondents to the 1990 Census who can be classified as having been employed full-time year-round in 1989. This concept of full earnings is used in each of the three tables in the series. The second concept, full-time earnings, only appears in Table 8. This concept is defined as those who were reported to have worked at least 1,920 hours during the reference year of 1991. This is the equivalent of forty hours a week for forty-eight weeks a year. The data to carry out this calculation were obtained from Washington's State Employment Security Department, which is one of the few state agencies that requires employers to report hours of work associated with the earnings of each employee.

Table 6

Actual Reported Annual Earnings and Censored Earnings of

1989-1990 Community College Associate Degree Recipients

Earnings in 1991 Earnings in 1992 Full Earnings in 1991 Full Earnings in 1992
Program Sex Size N Mean Stderr N Mean Stderr N Mean Stderr N Mean Stderr
Vocational F 1,122 911 $16,384 $328 865 $18,463 $369 573 $20,933 $355 624 $22,620 $357
M 912 679 18,776 542 647 20,675 518 430 25,308 603 469 25,904 514
All 2,034 1,590 17,406 300 1,512 19,410 307 1,003 22,808 335 1,093 24,029 304
Academic F 704 451 10,834 497 450 12,466 493 185 19,937 753 241 19,238 593
M 613 331 16,681 891 331 18,143 879 162 28,291 1,225 193 27,735 1,028
All 1,317 782 13,309 485 781 14,872 479 347 23,837 733 434 23,017 598
Adjusted Difference 4,088(559) 4529(559) -862 (777) 1,064 (640)
of Voc.-Acad. Significant Significant Not Significant Not Significant

Notes: "Full Earnings in 1991" is defined as "Earnings in 1991" if earnings were reported for each of the four quarters, and if this earnings amount is equal to or greater than $8,667; which is the inflated 5% quantile of 1989 full-time workers' earnings in the corresponding 1990 census group. The cut-off point for 1992 earnings is $8,887. Full-time is defined as 40 hours or more per week, 48 weeks or more per year.
The significance tests are for the difference between mean earnings levels for the vocational and academic groups, adjusted for the different distributions of "sex" in these groups. The tests are based on 5% significance level.
1992 earnings are deflated to 1991 by factor 1.025.

Table 6 presents actual earnings with no restriction on the number of quarters of reported employment, and full earnings using the censoring criteria that have been described in the previous paragraph, for the two years following the school year during which the members of the reference population received an associate's degree. This information is presented for male and female degree recipients separately, within vocational and academic groupings. This type of presentation can be replicated for any combination of curriculum and demographics, as long as the confidentiality stipulations are honored.

Table 7

Actual Reported Annual Earnings and Censored Earnings

1989-1990 Community College Associate Degree and Certificate Recipients

Earnings in 1991 Full Earnings in 1991
Degree Level Sex Size N Mean Stderr N Mean Stderr
Degree
F
2,797
2,300
$19,083
$232
1,671
$23,781
$218

M
1,581
1,212
18,677
346
815
24,322
349
All
4,378
3,512
18,943
193
2,486
23,959
186
Certificate
F
838
659
14,222
333
438
18,567
327
(>=1 year)
M
485
396
18,191
545
276
23,046
536

All
1,323
1,055
15,712
298
714
20,298
299
Certificate
F
262
206
12,714
763
96
21,393
1,002
(<1 year)
M
95
76
22,893
1,602
60
27,409
1,544

All
357
282
15,457
753
156
23,707
885
Adjusted Difference
3,351 347 3,923 337
of Degree-Cert. (>=1 yr)
Significant
Significant
Adjusted Difference

2,716
770

593
863
of Degree-Cert. (< yr)
Significant
Not Significant

Notes: "Full Earnings in 1991" requires that earnings were reported for each of the four quarters, and that the combined earnings amount is equal to or greater than $9,751, which is the inflated 5% quantile of 1989 full-time workers' earnings in the corresponding 1990 census group. "Full-time" is defined as 40 hours or more per week, 48 weeks or more per year.
The significance tests are for the difference between mean earnings levels for the degree and certificate groups, adjusted for the different distributions of "sex" in these groups. The tests are based on 5% significance level.

Table 7 provides a more detailed look at the actual and censored earnings levels within the vocational curriculum. Here, three levels of formal recognition of educational accomplishment are identified--associate's degree recipients, completers of a vocational certificate program that lasted at least the equivalent of one year's credit hours, and those who received a certificate for a shorter course of study. Again, male and female students who reached these plateaus are identified separately. The diversity of average annual earnings that appears in Table 7 provides yet another bit of the accumulating evidence that aggregates and snapshots mask major differences beneath the surface. These differences are often of great importance in the decision-making process. Diagnostics of this type can improve the quality of these decisions. It is particularly important to recognize the comparative earnings levels associated with the three types of degree or certificate. There is a clear hint here that previous work experience, and perhaps other education credentials, should be considered in any attempt to treat these earnings figures as vocational education outcomes.

The Effect of Using Different Censored Earnings Definitions on

1989-1990 Community College Associate's Degree and Certificate Recipients

Earnings in 1991 Full Earnings in 1991
Degree Level Sex Size N Mean Stderr N Mean Stderr
Degree
F
2,797
1,671
$23,781
$218
599
$25,700
$371
M
1,581
815
24,322
349
402
26,300
502

All
4,378
2,486
23,959
186
1,001
25,941
300
Certificate
F
838
438
18,567
327
126
21,189
605
(>=1 year)
M
485
276
23,046
536
112
25,480
778

All
1,323
714
20,298
299
238
23,208
505
Certificate
F
262
96
21,393
1,002
38
24,096
1,551
(<1 year)
M
95
60
27,409
1,544
33
28,381
2,170

All
357
156
23,707
885
71
26,087
1,321

Notes: "Full Earnings in 1991" requires that earnings were reported for each of the four quarters, and that the combined earnings amount is equal to or greater than $9,751, which is the inflated 5% quantile of 1989 full-time workers' earnings in the corresponding 1990 census group. Full-time is defined as 40 hours or more per week, 48 weeks or more per year.
"Full-Time Earnings in 1991" is the average earnings of those who worked at least 1,920 hours (40 hours per week, 48 weeks per year) in 1991.

Table 9

Earnings and Continuity of Employer Affiliation in a Multivariate Context:

1990-1991 Community College Vocational Program Completers

Dependent Variable
 

Earnings in
1991:4

Earnings in
1992:4

First Job Length
 

Chngd Emp. in
1992
Regression Type
 

Linear
Regression

Linear
Regression

Linear
Regression

Logistic
Regression
Number of
Observations

 
11,048

 
11,048

 
14,674

 
14,674
R-squared or C 0.5452 0.4419 0.2549 0.637
Population
 

Employed in
1991: 4

Employed in
1991: 4

Have Post-
School Job

Have Post-
School Job
 
Estimates
    $
P-Value
 

Estimates
   $
P-Value
 

Estimates
 (qtrs.)
P-Value
 

Estimates
   $
P-Value
 
Intercept -624.243 0.112 -1,089.821 0.024 3.015 0.000 -1.599 0.000
Demographic Variables      
 Male 358.952 0.000 650.800 0.000 -0.001 0.965 0.053 0.246
  African American -359.124 0.000 -402.615 0.000 -0.059 0.167 0.123 0.039
 Hispanic 124..937 0.162 113.325 0.300 0.018 0.774 0.041 0.648
Vocational Program      
 Agriculture -184.914 0.714 77.211 0.897 -0.515 0.159 0.769 0.111
  Office Ocupations -67.847 0.410 -92.355 0.361 0.023 0.687 0.024 0.763
 Engineering Technologies -104.061 0.310 161.113 0.198 -0.024 0.738 -0.044 0.675
  Allied Health -4.262 0.934 333.042 0.000 -0.303 0.000 0.362 0.000
 Medical Science 2,226.776 0.000 2,714.662 0.000 -0.005 0.912 0.244 0.000
 Child Care/Food Service -817.925 0.000 -1,016.304 0.000 -0.342 0.007 0.094 0.590
Local Economics
Conditions
     
 Local-Avg.-Earn ($) 1.017 0.000 1.555 0.000 0.000 0.188 0.000 0.003
Pre-Graduation Job
Info.
     
 Pre-Job -806.899 0.000 -1,098.645 0.000 0.725 0.000 0.045 0.045
  Earnings in 1991:2 0.614 0.000 0.559 0.000 0.000 0.000 0.000 0.000
1991:4 Job
Relatedness
     
 Directly Related 662.065 0.000 505.058 0.000 1.243 0.000 -0.393 0.000
 Somewhat Related 478.926 0.000 404.306 0.000 1.214 0.000 -0.263 0.002
 Not Related -274.206 0.000 -155.603 0.067 0.690 0.000 0.167 0.008
 Industry Related 347.044 0.000 546.003 0.000 1.135 0.000 -0.276 0.001
 Directly Not Related -538.108 0.000 156.325 0.422 0.519 0.000 0.358 0.013
Changed Employers in 1992   -660.157 0.000    

Notes: Italic indicates a 0-1 dummy variable.
Local-Avg-Earn is the average 1992:1 earnings of all 1990-1991 Florida high school and community college students in the state by groups of counties selected by the authors.
Pre-Job refers to the job held selected by the authors in 1991:2.
Industry-Specific Avg. Earnings are based on two-digit SIC code. The 1991:4 earnings of all workers (in another state because the data was available) are used to calculate the average earnings and standard error of the average earnings.

Table 8 uses the same format as Table 7, and repeats the full earnings figures from that table. The new feature here is the introduction of the full-time earnings figures. The intent is to demonstrate the sensitivity of reported earnings figures to the censoring rule that is used, and to highlight the gap between either of these censored figures and the actual reported levels that emerge when no restriction is imposed.

Specification and Estimation of Models

This brief section has been placed at the end of the introduction of new evidence intentionally. Up to this point, the text, figures, and tables have been designed to provide a complete package of refinements that should be considered in every state and in some local school districts. The sole criterion motivating this approach has been practical actionability--an expectation that every figure and table can be replicated and refined contingent upon a threshold level of cooperation among state education and employment security agency personnel. The material presented is expected to become a foundation for a broader and deeper discussion of both technical and policy issues.

The clear theme of Figure 1 is that interdependence of many forces must be considered in any serious attempt to estimate the outcomes of vocational education. Three accessible examples of serious expert investigation of these forces are Grubb (1995) and Kane and Rouse (1995a, 1995b).

The authors of the present guide are now collaborating with Rouse in the creation of a new database that will include longitudinal coverage of sequential cohorts of high school students in the Baltimore City Public Schools, some of whom continued on to one or more of Maryland's public community colleges and/or to one of the eleven teaching campuses of the University of Maryland System. These files complement the decade of Maryland employment and earnings data that are already available to the authors.

Each database has unique strengths and weaknesses. Grubb (1995) and Kane and Rouse (1995a, 1995b) have used the National Longitudinal Survey of the High School Class of 1972 (NLS-72) and the National Longitudinal Survey of Youth (NLSY) to conduct sophisticated investigations of the payoff to investments in community college education. Each of these data sets contains some variables that do not appear in a simple merger of student transcript information with state employment security administrative
records. These data sets are well-suited for the type of research conducted by Grubb and Kane and Rouse, but not for management diagnostics. Management diagnostics occur at the local and state levels. These require timely information that can be used to motivate exemplary performance by subordinate program managers and teachers in these programs.

Congressional budget debates make it clear that sustained federal investment in high-quality longitudinal data sets may be in jeopardy. State vocational education leaders have rarely received actionable support from research conducted with these data sets. This is not their intended purpose. This is why complementary reliance on a state's own administrative records is encouraged. When and if a national distributed database capability becomes a reality some convergence between the two approaches might occur. Meanwhile, there is ample evidence of success in pioneering states, complemented by awareness of how to advance to a higher plateau of understanding, that should be sufficient motivation for any state leader to join the growing team of wage record users.


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