1. PIAAC AND WORKFORCE BOARDS
Jennifer Hunt
Deputy Assistant Secretary for Microeconomic Analysis
Department of the Treasury
March 31, 2014
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 1 / 12

2. ADMINISTRATION INTEREST
ADMINISTRATION LABOR MARKET CONCERNS
1 Unemployment
Will be temporary
Though less temporary than would like
2 Inequality rising since 1979
Inequality rising
Wages at bottom stagnating
Wages of lower half of males falling
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 2 / 12

3. HOW COULD PIACC HELP?
COULD PIACC ONLINE HELP JOB–FINDING, WAGES?
1 By substituting for existing work–readiness and other exams?
E.g. free substitute for Work Keys
Current private tests expensive
So could expand use of tests if free
2 As demonstration of aptitude
To show employer directly
To allow WIB to make appropriate recommendations to employer
3 As indicator of future training needed
4 As before/after measure of training effectiveness
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 3 / 12

4. HOW COULD PIACC HELP?
DO WE KNOW SUCH TESTS ARE HELPFUL?
1 No – hasn’t been evaluated
2 No – and test score variation explains little wage variation
E.g. variation in AFQT score explains only 15% variation in wages
3 On the other hand
PIACC test might be better
Some of productivity comes from matching worker with right job
So tests perhaps better at measuring raw potential than wage
And perhaps better for predicting what training would benefit from?
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 4 / 12

5. RECOMMENDATION
EVALUATE
1 Randomly assign to use of diagnostic versus no diagnostic
Or: to use of existing diagnostic versus PIACC
2 Keep track of whether those with biggest score increases
before/after training get better jobs faster
3 Draw on expertise of DOL’s Chief Evaluation Officer to do this
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 5 / 12

6. PIACC’S TASK DATA
PIACC’S TASK DATA
1 PIACC has very useful information on tasks workers do
Obviously not useful diagnostic for someone not working
But international comparison indicates where US has to improve
While also painting a brighter picture than the test scores
2 Questions about reading, writing, problem solving etc. on the job
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 6 / 12

7. PIACC’S TASK DATA
INFORMATION–PROCESSING SKILLS AT WORK (AV.)
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 7 / 12

8. PIACC’S TASK DATA
GENERIC SKILLS AT WORK (AV.)
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 8 / 12

9. PIACC’S TASK DATA
GENERIC SKILLS AT WORK (AV.)
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 9 / 12

10. PIACC’S TASK DATA
US TASK RESULTS BY INTERNATIONAL COMPARISON
1 US workers seem to do skilled and complex tasks at work
Consistent with high US wages and productivity
2 Work in teams and don’t choose own tasks
3 Large number of workers doing manual tasks
Consistent with high inequality of test scores, wages
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 10 / 12

11. PIACC’S TASK DATA
MORE SKILLED TASKS ↔ HIGHER PRODUCTIVITY
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 11 / 12

12. PIACC’S TASK DATA
CAN THIS INFORMATION BE USEFUL FOR TRAINING?
1 Suggests can help bottom workers by getting out of manual tasks
2 Can we train workers such that employers give them task control?
Or is that a management practice fully determined by employers?
Need more research into whether helps lower paid workers
JENNIFER HUNT (DAS MICROECONOMICS) DEPARTMENT OF THE TREASURY MARCH 31, 2014 12 / 12