This paper addresses a question of direct relevance to welfare administrators and program operators: What management practices, program strategies, and local conditions are key to running effective welfare-to-work programs? Based on rigorous studies of the impacts and implementation of programs operating in 59 sites, the paper finds that clients' two-year earnings increase more when programs emphasize employment, provide personalized attention, and do not allow staff caseloads to become large. The findings also indicate that programs that operate in areas where unemployment is high have a smaller impact on short-term earnings than programs in other areas.

The research reported in the present paper was funded through a subcontract with the University of Chicago from grant #97000617-000 awarded by The Pew Charitable Trusts. The authors are at MDRC (Bloom and Riccio) and the University of Chicago (Hill).

MDRC's evaluation of the California Greater Avenues for Independence (GAIN) Program was funded mainly by the California Department of Social Services (CDSS), with additional support from the U.S. Department of Health and Human Services (HHS).

MDRC's evaluation of Florida's Project Independence (PI) Program was funded by Florida's State Department of Health and Rehabilitative Services and with additional support from the Ford Foundation and HHS.

MDRC is conducting the National Evaluation of Welfare-to-Work Strategies with funding from HHS under a competitive award, Contract No. HHS-100-89-0030. HHS is also receiving funding for the evaluation from the U.S. Department of Education. The study of one of the sites in the evaluation, Riverside County (California), is funded in part by a contract with CDSS which, in turn, is receiving additional funds from the California State Job Training Coordinating Council, the California Department of Education, HHS, and the Ford Foundation.