The recession in the US Economy led to a severe unemployment. The companies and the corporate entities were facing an acute liquidity crunch due to which they became skeptic of hiring people. As a result, even highly qualified people got petty jobs and those who were less qualified, found themselves to be ineligible for a job that would otherwise would have been available to them. Consecutively, unemployment started griping the nation. To counter the widespread discontent, the government started a training program that would nullify the lack of degrees amongst the US-labor.
The training program was aimed at helping the unemployed Americans to obtain gainful employment despite lacking in the requisite degree. This venture entailed a huge amount of public expenditure. Naturally, it would be interesting to understand the role they actually played in combating the problem of unemployment in the country. The following paper aims to analyze the effectiveness of the training program employed by the US Government in the years 2007 and 2008. The paper is divided into five sections- the first section (introduction) introduces the topic, the second section deals with the data and methodological aspects of the models developed in the paper, the third section deals with the computational aspects of the model, the fourth section brings out the rationale behind the computational strategies used in the third section and further tries to draw implications from the model and finally the fifth section draws conclusions bsed on the discussions about the model.
The data used for the analysis of the effectiveness of the training has been sourced from the Central Population Survey (CPS). CPS, which uses a quite robust scientific method for the survey, is assumed to have no inherent sampling bias. Hence, the analysis assumes that the 18667 data points used in the analysis is representative of the United States’ population. The independent variables that have been used here are the age of the samples in years, number of years of formal schooling, whether or not he is black or married or Hispanic and if he has a high school diploma, and if he participated in the training program. The qualitative responses in the above data have been coded as 1 if the answer to the asked question (if he is married/black/Hispanic/has high school diploma/attended training program) is a yes; else it is coded as zero.