Borus, Michael E., John P. Brennen, and Sidney Rosen. 1970. "A Benefit-Cost Analysis of the Neighborhood Youth Corps: The Out-of-School Program in Indiana." Journal of Human Resources 5(2):139-159.

Earnings of 604 participants in Neighborhood Youth Corps programs in five urban areas of Indiana and of 166 eligible nonparticipants (the control group) were examined in this study. On the basis of cost data and regression analyses of 1967 earnings, the following conclusions were reached: (1) The earnings gain as a result of NYC participation is substantial for males and high benefit-cost ratios are obtained by society. Thus the NYC program is much more than an "aging vat" for male participants. (2) Female participants, however, increase their post-program earnings very little and their benefit-cost ratios for society are almost always below one. (3) High school dropouts benefit more from the program than do graduates from high school. Therefore the program should continue to serve dropouts primarily. (4) The longer the participants remain in the NYC, the greater are the increases in post-program earnings. It appears, therefore, that if society wishes to increase the earnings of individual participants, the optimum strategy is to encourage early dropouts to remain in the program as long as possible.

Mr. Borus is Associate Professor, School of Labor and Industrial Relations, Michigan State University; Mr. Brennan is with the Canadian Treasury Board, and Mr. Rosen is a doctoral student at Cornell University. This research was supported by Grant No. 91-24-66-30 from the Office of Manpower Research, Manpower Administration, U.S. Department of Labor. The interpretation and views expressed are those of the authors and do not represent the policy of the Department of Labor. The authors wish to thank Mr. Dwight Kelley, Chief of Research, Indiana Employment Security Division, and the staff of the NYC in East Chicago, Evansville, Fort Wayne, Gary, Indianapolis, South Bend, and Terre Haute, Indiana. We would have been lost without their aid. We are also indebted to the Brookings Institution for the use of their computer. Finally, we would like to thank Professors Glen Cain, Mark Daniels, and Ernst Stromsdorfer who suggested substantial improvements in earlier drafts of this study. The research was begun at the School of Labor and Industrial Relations, Michigan State University.

© 2003 by the Board of Regents of the University of Wisconsin System

US ISSN 0022-166X

Return to JHR Home Page