A Randomized Evaluation of the Pursuit Fellowship

Over recent decades, real wages have fallen among non-college educated workers, due in part to the declining power of unions, the erosion of the federal minimum wage, and technology-induced changes in labor processes. As a result, ways to identify and scale pathways that promote upward mobility among low-wage workers are needed. Sectoral employment programs, which provide targeted training in industries with high local demand and good quality jobs, are an alternative to educational programs for workers unable to pursue two- or four-year degrees. What sectoral programs are most effective, why, and for which populations? Does their emphasis on applicant screening, career readiness training, sustained wraparound support services, and well-paying jobs in growing sectors result in increases in earnings that are sustainable over time? To address these questions, economists David Autor and Matthew Notowidigdo, in collaboration with Larry Katz (Harvard University) and Senior Policy and Training Manager Toby Chaiken (J-PAL North America), will partner with Pursuit Fellowship (Pursuit), a tech sector employment program located in Queens, New York. Pursuit trains low-income participants for jobs as software developers, and has shown income gains among participants, but has not been rigorously evaluated. It has an innovative financing model: participants have no upfront costs but are responsible for paying back a percentage of their salaries for a number of years after graduation if they earn above a certain threshold. The research team proposes to conduct a randomized controlled trial to isolate the effects of the Pursuit program on career paths, earnings, and other life outcomes. Because the program is oversubscribed and does not serve all qualified candidates, it will randomly select to allocate program spots. This enables the investigators to compare outcomes for those randomly accepted into the program to those who were similarly qualified but not accepted due to capacity constraints. The evaluation will modify Pursuit’s application process (i.e., online application and assessment test, day-long workshop, a take-home assignment, and final interview).