Washington State Institute for Public Policy
Career and technical education academies
Workforce Development
Benefit-cost estimates updated December 2016.  Literature review updated December 2016.
Federal education policy related to career and technical education (CTE) in high school increasingly emphasizes preparation for both college and career. CTE academies intend to develop both career and academic skill sets to enable a student to pursue postsecondary education or proceed to the workforce. These academies often operate as a “school-within-a-school” and emphasize connections with the workplace through partnerships with local employers. We considered studies of Career Academies and Linked Learning, an approach to career pathways used in California high schools.
BENEFIT-COST
META-ANALYSIS
CITATIONS
The estimates shown are present value, life cycle benefits and costs. All dollars are expressed in the base year chosen for this analysis (2015). The chance the benefits exceed the costs are derived from a Monte Carlo risk analysis. The details on this, as well as the economic discount rates and other relevant parameters are described in our Technical Documentation.
Benefit-Cost Summary Statistics Per Participant
Benefits to:
Taxpayers $4,869 Benefits minus costs $9,352
Participants $13,779 Benefit to cost ratio $2.70
Others ($530) Chance the program will produce
Indirect ($3,276) benefits greater than the costs 85 %
Total benefits $14,843
Net program cost ($5,491)
Benefits minus cost $9,352
1In addition to the outcomes measured in the meta-analysis table, WSIPP measures benefits and costs estimated from other outcomes associated with those reported in the evaluation literature. For example, empirical research demonstrates that high school graduation leads to reduced crime. These associated measures provide a more complete picture of the detailed costs and benefits of the program.

2“Others” includes benefits to people other than taxpayers and participants. Depending on the program, it could include reductions in crime victimization, the economic benefits from a more educated workforce, and the benefits from employer-paid health insurance.

3“Indirect benefits” includes estimates of the net changes in the value of a statistical life and net changes in the deadweight costs of taxation.
Detailed Monetary Benefit Estimates Per Participant
Benefits from changes to:1 Benefits to:
Taxpayers Participants Others2 Indirect3 Total
Crime $11 $0 $24 $5 $41
Labor market earnings associated with employment $5,889 $12,968 $0 $0 $18,857
Public assistance ($918) $390 $0 ($463) ($991)
Health care associated with educational attainment $506 ($139) ($554) $253 $66
Food assistance ($619) $560 $0 ($312) ($372)
Adjustment for deadweight cost of program $0 $0 $0 ($2,759) ($2,759)
Totals $4,869 $13,779 ($530) ($3,276) $14,843
Detailed Annual Cost Estimates Per Participant
Annual cost Year dollars Summary
Program costs $1,441 2014 Present value of net program costs (in 2015 dollars) ($5,491)
Comparison costs $0 2014 Cost range (+ or -) 50 %
We estimated the additional cost to operate a career and technical education (CTE) academy, above the cost of a typical high school education. This includes the ongoing cost of additional time from paid school personnel (teachers, administrators, and counselors) as well as time from unpaid work-based learning partners that work with students or participate in academy programs. It also includes the additional cost of materials, supplies, and operating costs that are allocated to CTE programs in Washington. Startup costs for equipment and personnel are also included, annualized over 5 years (or 30 years for facilities).
The figures shown are estimates of the costs to implement programs in Washington. The comparison group costs reflect either no treatment or treatment as usual, depending on how effect sizes were calculated in the meta-analysis. The cost range reported above reflects potential variation or uncertainty in the cost estimate; more detail can be found in our Technical Documentation.
Estimated Cumulative Net Benefits Over Time (Non-Discounted Dollars)
The graph above illustrates the estimated cumulative net benefits per-participant for the first fifty years beyond the initial investment in the program. We present these cash flows in non-discounted dollars to simplify the “break-even” point from a budgeting perspective. If the dollars are negative (bars below $0 line), the cumulative benefits do not outweigh the cost of the program up to that point in time. The program breaks even when the dollars reach $0. At this point, the total benefits to participants, taxpayers, and others, are equal to the cost of the program. If the dollars are above $0, the benefits of the program exceed the initial investment.

*  The effect size for this outcome indicates percentage change, not a standardized mean difference effect size.

Meta-analysis is a statistical method to combine the results from separate studies on a program, policy, or topic in order to estimate its effect on an outcome. WSIPP systematically evaluates all credible evaluations we can locate on each topic. The outcomes measured are the types of program impacts that were measured in the research literature (for example, crime or educational attainment). Treatment N represents the total number of individuals or units in the treatment group across the included studies.

An effect size (ES) is a standard metric that summarizes the degree to which a program or policy affects a measured outcome. If the effect size is positive, the outcome increases. If the effect size is negative, the outcome decreases.

Adjusted effect sizes are used to calculate the benefits from our benefit cost model. WSIPP may adjust effect sizes based on methodological characteristics of the study. For example, we may adjust effect sizes when a study has a weak research design or when the program developer is involved in the research. The magnitude of these adjustments varies depending on the topic area.

WSIPP may also adjust the second ES measurement. Research shows the magnitude of some effect sizes decrease over time. For those effect sizes, we estimate outcome-based adjustments which we apply between the first time ES is estimated and the second time ES is estimated. We also report the unadjusted effect size to show the effect sizes before any adjustments have been made. More details about these adjustments can be found in our Technical Documentation.

Meta-Analysis of Program Effects
Outcomes measured Primary or secondary participant No. of effect sizes Treatment N Adjusted effect sizes (ES) and standard errors (SE) used in the benefit-cost analysis Unadjusted effect size (random effects model)
First time ES is estimated Second time ES is estimated
ES SE Age ES SE Age ES p-value
High school graduation 3 1129 0.057 0.053 18 0.057 0.053 18 0.057 0.285
Test scores 3 585 0.051 0.048 17 0.051 0.048 17 0.051 0.288
Public assistance 1 799 0.072 0.070 22 0.000 0.000 24 0.072 0.303
Hours worked 1 770 0.056 0.054 26 0.000 0.000 28 0.056 0.293
Earnings* 1 770 0.106 0.041 26 0.000 0.000 27 0.106 0.010
Food assistance 1 799 0.081 0.070 22 0.000 0.000 24 0.081 0.250
Graduate with 2-year degree 1 782 0.040 0.099 26 0.040 0.099 26 0.040 0.685
Graduate with 4-year degree 1 782 -0.082 0.086 26 -0.082 0.086 26 -0.082 0.339
Citations Used in the Meta-Analysis

Guha, R., Caspary, K., Stites, R., Padilla, C., Arshan, N., Park, C., Tse, V., Astudillo, S., Black, A., & Adelman, N. (2014). Taking stock of the California Linked Learning district initiative: Fifth-Year evaluation report. Menlo Park, CA: SRI International

Kemple, J.J., & Scott-Clayton, J. (2004). Career academies: Impacts on labor market outcomes and educational attainment. New York: Manpower Demonstration Research Corporation.

Kemple, J.J., & Willner, C.J. (2008). Career academies: Long-term impacts on labor market outcomes, educational attainment, and transitions to adulthood. New York: Manpower Demonstration Research Corporation.

Warner, M., Caspary, K., Arshan, N., Stites, R., Padilla, C., Park, C., . . . SRI International. (2015). Taking stock of the California Linked Learning District Initiative. Sixth-year evaluation report. Menlo Park, CA: SRI International.

For more information on the methods
used please see our Technical Documentation.
360.664.9800
institute@wsipp.wa.gov