Empirical work has suggested that the returns to government-run training programs are higher when the programs are voluntary than when the programs are mandatory (In the process of Welfare Reform most states added education/job training programs. Some states made them voluntary and others made them required.)

a) Why might we expect the average increase in pay for those that entered voluntary job training programs to be higher than the average increase for those in mandatory programs?

b) Do you expect the age distribution to be different in voluntary vs. mandatory programs? Why or why not?