The Politics and Economics of CETA Programs

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Abstract
This article reports on the results of field observation of several youth programs in two Prime Sponsors. The paper provides both an analysis of the workings of the CETA system and an evaluation of youth programs. Unlike most studies of CETA the results reported here are based upon direct observation of programs and interviews with Prime Sponsors, as well as upon a study of the relationship between the underlying labor market problem and the nature of the policies. The article first reports the results of the programs along four dimensions: what happened to the youth, what happened to the programs, what happened to the staff, and the congruence between program design and the labor market situation facing the youth. Next the article seeks to explain the (rather discouraging) outcomes by examining the administrative and political implementation of the programs. A great deal can be explained from this perspective but purely administrative reforms are incomplete because they pay inadequate attention to the substantive rationale of the program. The article makes this point by examining the historical experience of youth programs and then presents a brief explanation of the problem of youth employment, examines the implicit theories of the programs, and shows how the success or failure of particular programs can be explained by relationship of the implicit theory to the real problem. The article concludes with some policy suggestions

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