Volume 3, Number 4 (Fall) 1968

Smith, Ralph E. 1968. "Apportionment of Funds under the Manpower Development and Training Act of 1962." Journal of Human Resources 3(4):499-514.

Several excellent cost-benefit analyses of programs under the Manpower Development and Training Act have been conducted and reported in the literature. However, little attention has thus far been directed to the method by which federal funds for these training programs are initially apportioned among the states. The major part of the funds for institutional and on-the-job training under Title II, Parts A and B, is made available through an apportionment formula based on criteria set forth in the Act.

The present paper describes and evaluates the existing method of apportionment. It is shown that this method contains serious weaknesses which may reduce the effectiveness of the over-all program. Formulas designed to avoid these weaknesses are developed as examples of available alternatives. Using data for fiscal year 1968, the apportionment factors resulting from these alternatives are computed and compared with those resulting from the existing method.

The author is a graduate student in the Department of Economics, Georgetown University. The author is grateful to Professors Bruce Davie and Bruce Duncombe of Georgetown and Dr. Pamela Kacser of American University for their encouragement and advice. The research on which this paper is based was begun in Professor Davie's Seminar on Intergovernmental Fiscal Relations.


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