Earnings and unemployment data from the California Employment Development Department and the California Employment Training Panel (ETP) Program records were used to analyze the effects of ETP. Earnings, weeks of unemployment, and unemployment insurance payments were measured in the year before and after training of ETP trainees who enrolled between January 1983 and December 1985. The experiences of both dropouts and completers were compared to assess the impact of ETP training and earnings while controlling for demographic and programmatic differences. Estimated effects of ETP on earnings were used to project impact of the ETP program on the California economy for 1 year and for longer periods. Findings indicated the following: (1) ETP training had a significant impact on the earnings of and reduced the likelihood of unemployment for both new hires and retraining completers; (2) ETP appeared to have a larger impact on earnings than traditional postsecondary vocational training offered in community colleges and proprietary institutions, Greater Avenues to Independence (GAIN) services, Job Training Partnership Act Title IIA, or other state displaced workers programs; and (3) the program had a substantial impact on California's economy beyond the increased earnings of participants. Stringent performance standards, policies to increase completion rates, targeting strategies, and impact studies were recommended. (Appendixes include 21 references, regression analysis of unadjusted earnings, and multipliers.) (YLB)