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The Personal Responsibility and Work Opportunity Reconciliation Act of August
19961 ended
the Aid to Families with Dependent Children (AFDC) program, one of the nation’s
principal safety nets for poor families. Among its provisions, the law replaced
AFDC with a block grant program, Temporary Assistance for Needy Families (TANF),
and created financial incentives for states to run mandatory, work-focused welfare-to-work
programs. While these types of programs are not new, various aspects of the
1996 law increase their importance: federal funds now may not be used to support
most families on welfare for longer than five years and a number of states and
localities have shorter welfare time limits; states face financial penalties
if they fail to meet TANF-defined “participation standards,” which require large
proportions of welfare recipients to be in work or work-related activities;
and states must have a plan for how they will require recipients to work after
two years of assistance.
To meet the new challenges of the federal welfare legislation, state and local
administrators and policy makers need to know about the types of welfare-to-work
program approaches that can quickly move substantial numbers of people into
work and off welfare. This report provides such guidance, by analyzing the effectiveness
of 11 mandatory welfare-to-work programs operated in seven locales. The sites
included in the evaluation are Atlanta, Georgia; Columbus, Ohio; Detroit and
Grand Rapids, Michigan; Oklahoma City, Oklahoma; Portland, Oregon; and Riverside,
California.
The report is one in a series from an evaluation of the programs called the
National Evaluation of Welfare-to-Work Strategies (NEWWS), conducted by the
Manpower Demonstration Research Corporation (MDRC) under contract to the U.S.
Department of Health and Human Services (HHS), with support from the U.S. Department
of Education. Child Trends, as a subcontractor, is conducting the analyses of
outcomes for young children (the Child Outcomes Study). Two other recent reports
(both also published in 2000 by the U.S. Department of Health and Human Services,
Administration for Children and Families and Office of the Assistant Secretary
for Planning and Evaluation, and the U.S. Department of Education) should be
viewed as “companion” documents to this report: Impacts on Young Children and Their Families
Two Years After Enrollment: Findings from the Child Outcomes Study, prepared
by Sharon M. McGroder, Martha J. Zaslow, Kristin A. Moore, and Suzanne M. LeMenestrel,
Child Trends; and Do Mandatory Welfare-to-Work
Programs Affect the Well-Being of Children? A Synthesis of Child Research Conducted
as Part of the National Evaluation of Welfare-to-Work Strategies, prepared
by Gayle Hamilton, MDRC, with Stephen Freedman, MDRC, and Sharon M. McGroder,
Child Trends.
Each of the 11 studied programs operated under the federal Job Opportunities
and Basic Skills Training (JOBS) program, which preceded TANF. Unlike TANF,
these programs did not impose a time limit on eligibility for welfare assistance.
However, they shared TANF’s primary goal of moving welfare recipients into paid
work and off assistance. Further, among the 11 programs some are strongly employment-focused,
the welfare-to-work strategy favored under TANF, and some are strongly basic
education-focused, an approach possible under TANF but more prevalent during
the late 1980s and early 1990s. (Overall, the present results pertain to the
period between 1991 and 1996.) The programs varied in other ways, including
how broadly the participation mandate was applied to the welfare caseload and
how strictly it was enforced, the amount of child care support provided for
program participation or employment, and methods of case management. The programs
also served different welfare populations and operated in a variety of labor
markets.
Taking advantage of the array of programs studied as part of the evaluation, this report
addresses the following critical question: What works best, and for whom? The
report distinguishes between employment-focused and basic education-focused
programs, as well as between levels of enforcement of the participation mandate.
Taking into account these two dimensions of program characteristics, plus the
types of program activities to which welfare recipients were assigned, four
categories of welfare-to-work program approaches emerge:
- employment-focused programs, with first assignments made to job search and
a high level of participation mandate enforcement;
- employment-focused programs, with first assignments made to job search,
basic education, or vocational skills training and a high level of participation
enforcement (only one program falls into this category);
- education-focused programs, with first assignment made to basic education
or skills training and a high level of participation enforcement; and
- education-focused programs, with first assignments made to basic education
or skills training and a low level of participation enforcement.
Exhibit ES-1 categorizes the sites’ programs. Notably,
four of the sites (Atlanta, Grand Rapids, Riverside, and Columbus) operated
two different programs simultaneously, to enable rigorous side-by-side tests
of the comparative effectiveness of various approaches. Three sites implemented
a Labor Force Attachment (LFA) program as well as a Human Capital Development
(HCD) program, versions of employment-focused and education-focused programs
that magnified the differences between the two types of approaches. The fourth
site, Columbus, implemented a program using a traditional (TRD) case management
model, in which welfare eligibility and employment program functions were performed
by separate staff members, and a program using an Integrated (INT) case management
model, in which these two functions were performed by the same staff member.
These eight programs in four sites, described in more detail in Section II,
are referred throughout by their site name and shortened program model name
(LFA, HCD, TRD, or INT).
It is important to note that the studies of the programs in the education-focused
category yield information about the effects of increasing welfare recipients’
participation in basic education programs (including Adult Basic Education,
GED preparation, and English as a Second Language classes) and, to a much lesser
extent, in vocation skills training programs, but not in college. On their own,
many welfare recipients enroll in various types of education or training classes
and reap benefits from them; the education-focused programs in the evaluation,
however, sought to increase participation in education or training activities
beyond what would normally occur. As will be discussed below, most of the programs
did indeed increase such participation, but the increases in enrollments were
in basic education courses and, to some degree, in vocational training courses,
and not in college-level ones.
This report analyzes the programs’ effects for single-parent welfare recipients,
focusing on results for the two years after individuals entered the programs.
This is an important period in which to gauge whether programs moved recipients
from welfare to work. Many states and localities now terminate welfare eligibility
after two years. In addition, prior research has shown that many individuals
on welfare for at least two years will likely remain on the rolls for a considerably
longer time. Under TANF, these individuals would be in jeopardy of reaching
their five-year limit on federal funding for welfare benefits. Consequently,
the two-year results for these 11 programs will become a benchmark for the next
generation of welfare initiatives.
The report explores the following questions:
- Which welfare-to-work program approaches were most successful in helping
welfare recipients to receive the program services or attain the skills or
credentials that could enhance their chances of finding employment?
- Which approaches were most successful in helping welfare recipients to
find paid work and leave welfare within the two-year follow-up period and
to remain off welfare? Did any approaches help individuals to get a “good”
job, that is, a full-time job with health benefits?
- Which approaches were most successful in increasing welfare recipients’
income and helping them move out of poverty?
- Did any approaches positively or negatively affect the well-being of children?
- Which approaches were most successful in achieving self-sufficiency for
those who were at high risk for long stays on welfare?
The NEWWS Evaluation uses an unusually strong research design, a random assignment
experiment, to estimate program effects. In each site individuals who were required
to participate in the program were assigned at random to either a program group
(in some sites, one of two program groups) or a control group. Program group
members had access to program-provided services and were required to participate
in the program or risk a reduction in their monthly welfare grant. Control group
members received no mandatory welfare-to-work program services but could seek
similar services on their own in the community. This random assignment design
assures that within each site there are no systematic differences between the
background characteristics of program and control group members when they enter
the study. In addition, within each site program and control group members are
subject to the same welfare grant levels, labor market conditions, and other
environmental factors. As a result, any subsequent differences in outcomes between
the groups within each site can be attributed with confidence to the effects
of the program. These differences, called impacts, can then be compared across
sites, yielding a much more accurate determination of which types of programs
are high and low performers than simple comparisons of statistics, such as welfare
caseload reductions, across localities or states.
I.Findings in Brief
An examination
of the range of effects achieved by all 11 programs yielded the following information
about which welfare-to-work program strategies are more or less successful in
helping welfare recipients achieve self-sufficiency:
All programs, regardless of their approach,
increased participation in activities designed to promote employment during
the two-year follow-up period. As expected, employment-focused programs
increased participation primarily in job search activities, whereas education-focused
programs raised participation levels primarily in basic education and vocational
skills training classes. Very different patterns of participation impacts were
found for individuals who entered the study with a high school diploma or GED
certificate and for those who did not have these credentials. In most education-focused
programs participation impacts were concentrated among those without a high
school diploma or GED and resulted primarily from large increases in attendance
in basic education; only small increases in attendance in post-secondary education
or vocational training were found for the education-focused programs, and they
were generally among only high school graduates or GED holders. In contrast,
large impacts on participation in job search were achieved for both groups in
the employment-focused programs.
Some education-focused programs, as well as
the Portland program, were able to produce relatively large impacts (about 10
percentage points) on GED attainment among sample members who did not have a
high school diploma or GED certificate at study entry. Of the seven education-focused
programs, Grand Rapids HCD, Riverside HCD, and Columbus Traditional programs
had this effect. Portland’s program, in addition to boosting GED receipt, increased
the rate at which those without education credentials obtained a trade license
or certificate by 12 percentage points. For sample members with a high school
diploma or GED certificate at study entry, only three programs (Atlanta LFA
and HCD and Grand Rapids HCD) increased receipt of a trade license or certificate.
As expected, employment-focused programs produced
larger gains in employment and earnings over the two-year follow-up period than
education-focused programs, but these effects may not be sustained everywhere
in the long run. Except in Riverside, the site with the most difficult labor
market, a majority of control group members found jobs on their own initiative
at some point within two years of random assignment and, as a group (including
zeroes for nonearners), had average earnings during the second year of follow-up
ranging from $2,127 (Oklahoma City) to $3,978 (Columbus). In Portland program
group members attained the largest earnings increase among all programs, averaging
more than $900 per year in earnings above control group members. Equally important,
employment and earnings gains in Portland grew larger over time and reached
their highest levels at the end of year 2, the end of the short-term follow-up
period available for this report. The other employment-focused programs produced
moderate earnings increases, ranging from $400 to $650 per year, that grew smaller
toward the end of year 2.
Several of the education-focused programs
began to show moderate impacts in year 2. By the end of year 2 all but two
of the education-focused programs had attained increases in employment and earnings
that equaled or exceeded the gains achieved by all employment-focused programs
except Portland’s. The two exceptions to this pattern, the Riverside HCD and
Oklahoma City programs, did not raise employment or earnings levels in year
2. Overall, these results underscore the importance of tracking the effects
of education-focused programs over a longer term.
All programs reduced welfare dependency to
some degree. Control group members in all but one site remained on welfare
for an average of 16 to 20 months during the two-year follow-up period and received
payments averaging between $3,624 (Oklahoma City) and $10,302 (Riverside HCD)
during this same period. Seven of the 11 programs, a mixture of employment-and
education-focused approaches, decreased cumulative welfare expenditures by more
than 10 percent, a historically large effect; welfare reductions in the other
four programs were smaller. Portland’s program produced a large decrease in
welfare receipt that persisted at a high level throughout the follow-up period,
showing a 12 percentage point decrease in welfare receipt during the last quarter
of the two-year period; all other programs had reduced welfare receipt at this
point by 3 to 7 percentage points. All in all, however, at least 40 percent
of sample members in the programs were still relying to some extent on welfare
at the end of two years.
Most programs increased sample members’ reliance
on earnings, as opposed to welfare, but family net incomes were largely unchanged.
As a result, the programs lifted few families above the poverty line. Reductions
in welfare, Food Stamps, and other benefits generally matched or exceeded earnings
gains. Including estimates of the Earned Income Tax Credit (EITC) as income
produced little change in this finding for all programs except Portland’s, which
attained the largest and most consistent gain in total income ($238, or $425
including the EITC estimate, for year 2 of the follow-up) and also produced
a small increase in the proportion with incomes above the poverty level (4 percentage
points, or 7 percentage points including the EITC estimate, in year 2).
Although no programs had pervasive negative
effects on sample members, some individuals were adversely affected. In
year 2 of follow-up six programs (some employment-focused and some education-focused)
produced small increases in the proportion of sample members with combined income
from AFDC, Food Stamps, and earnings equivalent to less than 50 percent of poverty
levels. In addition, several programs (representing both types of approaches)
increased the rate at which individuals left welfare without a job. Finally,
some programs that increased employment also decreased family health insurance
coverage (as reported by parents) and increased out-of-pocket child care expenditures.
The programs did not have widespread, large,
or consistent effects on the children of sample members, but positive and negative
effects occurred in some programs. No programs in the evaluation provided
direct services (with the exception of child care assistance) to children. Program-produced
changes in the lives of sample members (virtually all mothers) may, nevertheless,
influence the well-being of children. There is evidence that some of the programs
affected the likelihood of at least one child in a family having behavioral,
educational, or health and safety problems. There was not, however, a consistent
pattern of benefit or harm to children. In addition, employment- and education-focused
programs did not appear to affect children differently; there was no consistent
evidence that one particular approach affected children more or less or was
more likely to help or harm children.
Several employment- and education-focused
programs attained at least moderate employment and earnings gains for the “most
disadvantaged” sample members. Five pro-grams (Portland, Grand Rapids LFA
and HCD, and Riverside LFA and HCD) increased employment and earnings for individuals
who at study entry did not have a high school diploma or GED, had not worked
in the prior year, and had been on welfare cumulatively for two years or more.
These five programs and two others (Detroit and Columbus Integrated) also reduced
the amount of time that the most disadvantaged individuals spent on welfare
during the follow-up period.
High enforcement programs did not produce
the largest impacts, but low enforcement programs resulted in only small effects.
Programs in which staff closely monitored individuals’ attendance in program
activities, followed up quickly when problems arose, and swiftly imposed financial
sanctions when individuals did not comply with program requirements, were present
among both the employment- and education-focused programs. High enforcement
programs, notably those in Grand Rapids and Columbus, did not necessarily produce
the largest impacts. However, the two low enforcement programs — Oklahoma City
and, in its early stages, Detroit — yielded only small impacts. It thus appears
that a minimum level of enforcement by program staff is required to produce
at least moderate earnings and welfare impacts, presumably because this extra
“push” is needed in order to engage in program activities those who normally
would not participate on their own initiative.
While many programs achieved positive effects
on employment, earnings, and reduced use of welfare, few achieved large effects,
except for Portland. The Portland program was unusually successful in substantially
increasing employment and earnings, helping people to get “good” jobs, lowering
welfare receipt, and achieving these outcomes for a cross section of sample
members. The results are probably due to a combination of factors. While its
employment message was strong, the program offered high-quality education and
training services as well as job search, enforced a participation mandate, and
had strong job development and placement services. In addition, contextual factors
may have contributed to the program’s success. In particular, it worked with
a less disadvantaged welfare caseload (relative to the other studied programs)
and operated within a good labor market with a relatively high state minimum
wage.
The remainder of this summary details these findings. First, however, it describes
the key welfare-to-work program approaches contrasted in the analysis and explains
the evaluation’s research design and samples.
II. Program Approaches and Implementation Features
As noted above, the evaluation’s sites implemented very different programs;
in fact, the research designs in several of the sites were set up to rigorously
compare the effects of specific program approaches. This section discusses the
two key implementation features used in this report to define four broad program
approaches. In addition, for context, other major program dimensions are described.
A. Employment- or Education-Focused
Since the late 1960s welfare-to-work programs seeking to increase welfare recipients’
self-sufficiency have emphasized one of two strategies. One strategy emphasizes
quick employment, reflecting the belief that individuals can best build their
employability, and eventually achieve self-sufficiency, through actual work,
even if their initial jobs are minimum wage and without fringe benefits. The
other strategy emphasizes skill-building, particularly in the education area,
reflecting the view that individuals should first invest in education or training
to enable them to eventually obtain higher-wage, longer-lasting jobs with health
insurance coverage. The 11 NEWWS programs blend elements of both strategies
to varying degrees.
As shown in Exhibit ES-1 four programs (Atlanta, Grand
Rapids, and Riverside LFA and Portland) were “employment focused.” They provided
job search assistance to a large segment of their caseload and encouraged enrollees
to find work as quickly as possible. Further, both the Portland and Riverside
programs employed full-time job developers to help place program enrollees in
unsubsidized jobs.
The three LFA programs, however, differed from Portland’s program in important
ways. The LFA programs routinely assigned individuals to job search assistance,
usually job club, as their first activity, whereas Portland’s program offered
GED preparation classes to those deamed by case managers to have a good chance
of attaining a GED certificate relatively quickly. (Activities initially assigned
are an important clue to the “treatment” experienced by welfare recipients,
as many people leave welfare or become exempt or temporarily excused from welfare-to-work
programs prior to being assigned to a second program activity.) Further, Portland
case managers encouraged enrollees to hold out for jobs that paid well above
the minimum wage and offered the best chance for long-lasting and stable employment.
In contrast, case managers in the LFA programs, especially in Riverside, stressed
the value of starting off with any job, even a low-paying one, and then advancing
toward more stable and better-paying jobs in the future.
Seven programs (Atlanta, Grand Rapids, and Riverside HCD; Columbus Integrated
and Traditional; and Detroit and Oklahoma City) can be characterized as “education-focused.”
(See Exhibit ES-1.) A large percentage of enrollees in these
programs were initially assigned to some type of skill-building activity. The
types of activities to which enrollees were first assigned depended, in part,
on the level of educational attainment that individuals had achieved prior to
entering the program. Those who had not completed high school or received a
GED certificate but who were assessed by case managers as having high school-level
skills were assigned to GED preparation classes. Those with lower reading or
math levels were assigned to Adult Basic Education classes. In addition, non-English
speakers could be assigned to English as a Second Language (ESL) programs. Finally,
those who had completed high school or held a GED certificate could be assigned
to vocational training or employment-oriented skills courses at local community
colleges. All in all, however, assignments to GED preparation or basic education
courses were more common than assignment to vocational training programs in
these education-focused programs, primarily as a result of welfare recipients’
low levels of educational achievement; enrollment in college played an even
smaller role.
Some differences existed among the seven education-focused programs. The three
HCD programs usually assigned enrollees to education or training programs as
their first activity. Case managers in Columbus, Detroit, and Oklahoma had more
discretion over activity assignments, but, in practice, most program enrollees
were initially assigned to education or training activities in these sites as
well. Riverside’s HCD program was also unique among this group in that it did
not serve high school graduates and GED holders who, at program entry, scored
above minimum levels in reading and math tests.
B. High or Low Enforcement of the Participation
Mandate
The degree to which a program enforces a participation mandate can be viewed
as a product of three factors: how wide a cross section of the welfare caseload
is enrolled in a program; how closely a program monitors individuals’ participation;
and how swiftly and consistently a program imposes financial sanctions, that
is, reductions in monthly welfare grants, on those who do not participate.
All four employment-focused programs, and five of the seven education-focused
programs, can be considered high enforcement programs; the remaining two education-focused
programs, Detroit and Oklahoma City, can be considered low enforcement programs.
While technically requiring enrollment from a cross section of their “mandatory”
caseloads, these latter two programs put a priority on working with those individuals
who expressed interest in participating in the program. In addition, resource
constraints kept staff in these sites from closely monitoring individuals’ participation
in program activities. Finally, staff in these two sites rarely invoked financial
sanctions. In contrast, program staff in the other programs generally enrolled
and worked with a cross section of the welfare applicants and recipients who
were required to participate; monitored participation more closely; and, especially
in Columbus and Grand Rapids, frequently invoked sanctions for nonparticipation.
C. Other Key Program Features
Other implementation features, beyond those discussed above, can also potentially
influence a program’s effectiveness. Two of them — the level of child care support
provided and the structure of program case management — are described here.
All 11 studied programs offered child care assistance to welfare recipients
who needed it while they were participating in program activities or employed.
Oklahoma City, Portland, and Detroit provided the strongest staff support for
arranging child care. Staff in these programs helped to make child care arrangements
and also helped those who found jobs to obtain transitional child care assistance.
In contrast, case managers for both Riverside programs did not provide much
assistance in setting up child care arrangements, encouraged enrollees to use
low- or zero-cost informal child care while they were participating in program
activities, and did not actively promote the use of transitional child care
benefits.
The programs also differed in their case management strategies. Columbus Integrated,
Portland, and Oklahoma City implemented an “integrated case management” staffing
arrangement. That is, case managers in these sites combined responsibilities
normally performed by income maintenance staff (determining welfare eligibility,
calculating welfare grants, invoking financial penalties, and arranging for
transitional benefits) with responsibilities usually assigned to welfare-to-work
program staff (assigning enrollees to employment-related activities, arranging
for child care, and monitoring participation). Columbus Integrated and Portland
staff had sufficient resources and small enough caseloads to perform both of
these roles, enabling them to promote a consistent self-sufficiency message.
In contrast, in Oklahoma City limited resources and large caseloads led case
managers to put most of their overall emphasis on the financial functions of
their job.
The Atlanta, Grand Rapids, and Riverside LFA and HCD, Columbus Traditional,
and Detroit programs all used a traditional case management structure, in which
each welfare recipient had two different case managers. Commonly, income maintenance
workers knew little about the welfare-to-work program in their site. Among these
sites, the staffing division was most pronounced in Detroit.
III. Research Designs and Samples
In Atlanta, Grand Rapids, and Riverside welfare recipients were randomly assigned
to either an LFA or an HCD program group or to a control group. (See Exhibit
ES-2.) Both types of programs operated simultaneously in these three sites.
In Columbus a three-group random assignment design was used as well. Here, the
two program groups represented two case management models: integrated and traditional.
The remaining three sites in the evaluation — Oklahoma City, Detroit, and Portland
— used random assignment to test the effectiveness of established programs,
as opposed to programs designed to meet research protocols; individuals were
randomly placed in either a group that entered the program or a nonprogram control
group. Note that control group members were eligible for child care assistance
similar to that offered to program group members if they were participating
in nonprogram activities in which they had enrolled on their own.
Individuals were randomly assigned to research groups over approximately a two-year
period in each site. Random assignment for the evaluation began in June 1991
in Riverside and ended in December 1994 in Portland. Thus, the results presented
in this report cover the calendar period from June 1991 (the first sample member’s
entry into the study) through December 1996 (the last month of the two-year
follow-up for the last sample member randomly assigned in Portland).
Differences in research design and random assignment procedures affected the
composition, and thus comparability, of the samples across sites. (See Exhibit
ES-2.) In five of the seven sites AFDC applicants and recipients were randomly
assigned while attending a program orientation; in the other two sites (Columbus
and Oklahoma City) individuals were randomly assigned before they were referred
to a program. Since some individuals typically exit welfare for employment or
other reasons before attending a program orientation, the samples in Columbus
and Oklahoma City include a larger share of individuals who quickly left welfare.2
The programs also differed in how broadly or narrowly they targeted enrollment.
Most notably, Oklahoma City randomly assigned only welfare applicants (that
is, persons in the process of applying for welfare), including those whose application
for assistance was not yet approved. Additionally, Detroit, Grand Rapids, Oklahoma
City, and Portland extended their program coverage to mothers with children
as young as age 1, whereas the remaining programs exempted parents whose youngest
child was under age 3. Riverside limited enrollment in its HCD program to individuals
determined by program regulations to need basic education because they lacked
a high school diploma or GED certificate, attained low scores on a reading or
math exam administered at program entry, or had limited proficiency in English.
Finally, other programs limited enrollment (and thus those eligible for random
assignment) by capping caseloads for program staff and establishing waiting
lists for enrollees (Atlanta) or by excluding those who, in the judgment of
program staff, had serious barriers to participation (Portland).
Because of these and other factors, the research samples differed across the
seven sites in key background characteristics likely to affect individuals’
chances of finding employment and leaving welfare. For instance, excluding the
Riverside HCD program, the proportion of sample members who had completed high
school or attained a GED certificate prior to random assignment ranged from
55 percent (Oklahoma City) to 66 percent (Portland); the proportion who had
ever worked full time for at least six months for the same employer ranged from
43 percent (Columbus) to 77 percent (Portland); and, excluding Oklahoma City,
between 28 and 50 percent of sample members in the sites had received welfare
cumulatively for five years or more.
IV. Findings
A. Program Participation and Enforcement
- Many control group members took part in education and training activities
on their own initiative. All programs, however, were able to increase participation
levels in employment-related activities above the control groups’ rate of
activity during the two-year follow-up. The size of the increase was associated
with the degree of enforcement of the participation mandate, but not with
the program approach.
Between 19 and 42 percent of control group members surveyed in each site reported
participating during the two-year follow-up period in an employment-related
activity, such as basic education, skills training, post-secondary education,
or formal job search. As shown in Exhibit ES-3, all programs
increased participation beyond these levels of self-initiated activity, from
9 to 40 percentage points above control group participation levels. Overall,
program participants were generally involved in activities for at least several
months.
All but one of the programs with high enforcement of the participation mandate
(including both employment- and education-focused programs) produced large impacts
on participation (above 20 percentage points). Participation impacts were much
smaller for the two low enforcement programs (Detroit and Oklahoma City). In
these two sites the programs’ efforts increased the number of welfare recipients
who participated in activities only slightly beyond what they would have done
on their own, in the absence of a mandatory welfare-to-work program.
- As expected, all of the employment-focused programs produced large increases
in participation in job search activities. Some also produced small increases
in participation in education and training.
The four employment-focused programs increased job search participation by 27
(Grand Rapids LFA) to 32 percentage points (Portland and Riverside LFA), compared
with control group levels. (See Exhibit ES-4.) The programs
achieved large gains for people who entered the program with a high school diploma
or GED certificate and for nongraduates. Enrollees in the employment-focused
programs could be assigned to short-term education or training if they completed
job search without finding employment (or, in Portland, at program entry). The
Atlanta LFA and Portland programs produce small increases in participation in
education or training.
- Most of the education-focused programs raised participation levels in
education or training. To a lesser extent, the programs also increased participation
in job search.
As shown in Exhibit ES-4, the education-focused programs
increased participation in education or training by 10 to 35 percentage points
(Oklahoma and Riverside HCD, respectively) compared with control group levels.
(Detroits increase in education or training participation was not statistically
significant.)
While the increases for some programs were small when all sample members are
considered, most of the education-focused programs achieved large increases
in participation in education or training for sample members lacking a high
school diploma or GED certificate at random assignment (not shown in Exhibit
ES-4). Most of these increases are accounted for by participation in basic
education.
When enrollees in the education-focused programs completed education or training,
they were often assigned to job search. As Exhibit ES-4
illustrates, all of the education-focused programs raised job search participation
levels to some extent; impacts were similar for high school graduates and nongraduates.
- Most programs produced only small increases in participation in work
experience or on-the-job training.
TANF participation requirements encourage states to enroll welfare recipients
in unpaid work or on-the-job training. None of the programs in the evaluation
made extensive use of these activities, but most were able to produce small
impacts on participation in such activities because even fewer control group
members participated in them. (Participation impacts on these activities are
not shown in Exhibit ES-4.)
- The 11 programs varied widely in their use of financial sanctions, or
AFDC grant reductions, to enforce mandatory participation requirements. Sanction
rates in most of the employment-focused programs were moderate, but rates
in the education-focused programs ranged from very low to very high.
In three of
the four employment-focused programs (Atlanta and Riverside LFA and Portland)
between 11 and 18 percent of program group members reported that they were sanctioned
for noncompliance with program participation requirements during the follow-up
period. Three education-focused programs (Grand Rapids HCD and Columbus Integrated
and Traditional) and an employment-focused program (Grand Rapids LFA) had high
sanction rates, ranging from 26 to 32 percent of program group members. At the
other extreme, almost no program group member in the low enforcement education-focused
programs in Detroit and Oklahoma City reported being sanctioned.
B. Receipt of Education or Training Credentials
- Some of the education-focused programs, as well as the Portland program,
produced relatively large impacts on GED certificate attainment among sample
members who entered the program without a high school diploma or GED certificate.
As noted above, most education-focused programs increased participation in
basic education among nongraduates, but only three of these programs (Grand
Rapids and Riverside HCD and Columbus Traditional) increased GED certificate
attainment for this subgroup. Impacts on GED receipt ranged from 8 to 11 percentage
points. Notably, Portland achieved similar gains in GED receipt. (The other
three employment-focused programs had no effect on GED attainment.)
- For those entering with a high school diploma or GED, a few programs
increased the proportion who received a trade license or certificate. One
program increased the proportion of nongraduates who received a trade credential.
Two education-focused programs (Atlanta and Grand Rapids HCD) and one employment-focused
program (Atlanta LFA) increased receipt of a trade license or certificate for
sample members in the graduate subgroup. Impacts ranged from 5 percentage points
(Atlanta LFA) to 11 percentage points (Atlanta HCD). Portland increased receipt
of a trade license or certificate by 12 percentage points among those entering
the program without a high school diploma or GED. (Only Portlands program
had this effect for the nongraduate subgroup.)
C. Employment and Earnings
- Employment-focused programs produced larger gains in employment over
the two-year follow-up period than most of the education-focused programs.
Six of the seven sites in the evaluation experienced economic growth and strong
labor markets during the first years of follow-up; aided by these conditions,
a majority of control group members in these sites (from 58 to 72 percent) worked
for pay at some point during the two-year follow-up period. Jobs were much harder
to find in Riverside; only 45 percent of control group members were employed
during the follow-up period.
As shown in Exhibit ES-5, all four employment-focused
programs increased two-year employment levels, from 5 percentage points (Atlanta
LFA) to 15 percentage points (Riverside LFA). (Exhibit ES-5
shows outcomes for both program and control groups and the differences between
the two groups outcomes, that is, the impacts; other exhibits present
only the impacts for the various outcomes discussed.) As described above, education-focused
programs delayed job finding in the short term. Not surprisingly, employment
gains for most of these programs fell below those of the employment-focused
programs. Three of the seven education-focused pro-grams produced no statistically
significant increase in employment (Columbus Integrated and Traditional and
Oklahoma), and the other education-focused programs increased employment between
3 and 9 percentage points (Atlanta and Riverside HCD, respectively).
- Employment-focused programs produced much larger gains in earnings over
the two-year follow-up period than education-focused programs.
Earnings for control group members in the seven sites averaged between $3,133
and $6,892 (including zeroes for those with no earnings) over the two-year follow-up
period. As Exhibit ES-6 illustrates, Portland increased
earnings by an average of $1,842 per program group member. This earnings gain
is much larger than that of the other three employment-focused programs and
exceeds that of all previously evaluated mandatory welfare-to-work initiatives,
except the Riverside GAIN program of the late 1980s (another employment-focused,
varied first activity program). Earnings gains in the other employment-focused
programs in the evaluation were moderate, ranging from $813 to $1,276 (Atlanta
LFA and Riverside LFA, respectively). Earnings gains in the education-focused
programs were smaller; statistically significant gains ranged from $367 to $677
(earnings impacts in Riverside HCD and Oklahoma were not statistically significant).
Neither of the two low enforcement programs (Oklahoma City and Detroit) produced
substantial earnings increases.
- Over time, the employment and earnings gains diminished in most of the
employment-focused programs, but increased in most of the education-focused
programs. By the end of the two-year follow-up period some of the education-focused
programs had “caught up” to the employment-focused programs.
The earnings gains in two of the three LFA programs (Grand Rapids and Riverside)
diminished over time, as increasing numbers of control group members began finding
jobs on their own. In the last quarter of year 2 the three LFA programs raised
employment levels by only 4 percentage points and increased average earnings
by about $100. (Exhibit ES-7 shows employment levels
over the follow-up period, averaged across programs within each approach.)
In contrast, gains increased in most of the education-focused programs. By the
last quarter of year 2, impacts on employment and earnings for five education-focused
programs (Atlanta and Grand Rapids HCD, Columbus Integrated and Traditional,
and Detroit) were similar to or slightly larger than impacts for the three LFA
programs: employment gains ranged from 3 to 6 percentage points and earnings
gains ranged from $93 to $179. Overall, these results underscore the importance
of tracking the effects of education-focused programs over a longer period than
two years.
Unlike the effects in other employment-focused programs, in Portland positive
effects on employment and earnings increased over time: in the last quarter
of follow-up the program group employment level was 11 percentage points higher
than the control group level, and the program group earned on average $310 more.
These impacts are far larger than those of any other program in the evaluation.
- Portland’s program produced the largest, most consistent increases in
employment stability and job quality during the follow-up period.
Portland’s employment-focused, varied first activity program increased the proportion
of people who worked all four quarters of year 2 by 8 percentage points and
who earned $10,000 or more in year 2 by 6 percentage points. At the end of year
2 (as measured from survey responses) the program increased the percentage of
people working at full-time jobs and at jobs that offered health coverage. It
also increased average hourly pay for those working, but this finding, since
it is based on a nonexperimental comparison (different types of individuals
in the program and control groups may have been working) is more speculative.
The Riverside LFA program also increased full-time employment with health benefits
and higher hourly earnings, but to a lesser extent than the Portland program.
Contrary to expectations, the education-focused programs increased job quality
to only a small extent or not at all by the end of two years.
D. Public Assistance Receipt and Payments
- All programs reduced AFDC receipt to some degree. On average, decreases
for the employment-focused programs were larger, but decreases for some education-focused
programs rivaled or exceeded decreases for some employment-focused programs.
All programs lowered the proportion of welfare recipients who would have reached
a two-year welfare time limit, had one been in effect. Control group members
in all but one site received AFDC for an average of 16 to 20 months during the
two-year follow-up period. (The exception was Oklahoma City, where the all-applicant
sample averaged 12 months of receipt.) The programs reduced the average number
of months of AFDC receipt by 0.48 to 2.41 months (or
2 to 16 percent). Two employment-focused programs, Grand Rapids LFA and Portland,
produced the largest decreases (2.21 months and 2.41 months, respectively).
Decreases for the education-focused programs ranged from 0.48 to 1.58 months.
In the last quarter of follow-up between 41 percent (in Oklahoma City) and 74
percent (in Detroit) of control group members received an AFDC check. Portland
produced the largest reduction in the proportion of sample members receiving
AFDC at this point (12 percentage points). Among the other programs, reductions
in the proportion receiving AFDC at the end of year 2 ranged from 6 to 7 percentage
points for the three LFA programs and from 3 to 7 percentage points for the
education-focused programs.
- All programs but one decreased average AFDC payments over the two-year
follow-up period.
Control group members received AFDC payments over the two years averaging
between $3,624 and $10,302 (including those who left welfare during the two-year
follow-up period). Three employment-focused programs (Grand Rapids and Riverside
LFA and Portland) and one education-focused program (Riverside HCD) reduced
payments by more than $1,000 (representing decreases of 10 to 19 percent, relative
to payments to the control group). (See Exhibit ES-8.)
Three other programs, all education-focused (Grand Rapids HCD and Columbus Integrated
and Traditional), also reduced two-year welfare expenditures per program group
member by 10 percent or more. Detroit’s program produced only a slight, not
statistically significant, decrease in AFDC payments over the two years.
- Most programs reduced Food Stamp receipt and expenditures during the
follow-up period.
Eight of the 11 programs decreased average Food Stamp expenditures over the
two-year follow-up period and decreased the proportion of people who received
Food Stamps in the last quarter of year 2. Decreases in two-year expenditures
ranged from 2 to 13 percent and decreases in receipt at the end of follow-up
ranged from 4 to 8 percentage points. One employment-focused program and two
education-focused programs had no effect on Food Stamp receipt (Atlanta LFA
and HCD and Oklahoma City).
E. Employment and Welfare Status at the End of Two Years
- In all programs a substantial proportion of enrollees were receiving
AFDC at the end of the two-year follow-up period.
Across all programs as many as 7 in 10 program group members (in Detroit)
remained on welfare at the two-year mark. Even in programs that moved the largest
proportion of sample members off welfare, at least 4 in 10 enrollees remained
on welfare. This offers a caution to states striving to achieve very rapid self-sufficiency
for virtually all welfare recipients.
- Most programs increased the proportion of people who were working and
not receiving AFDC at the end of the follow-up period.
In the last quarter of year 2 between 13 and 27 percent of control group members
were employed and receiving no AFDC payments. All programs but two (Riverside
HCD and Oklahoma City) increased the proportion of people in this status. (See
Exhibit ES-9.) Impacts were generally small, with two programs
(Portland and Columbus Integrated) achieving moderate increases. The impacts,
which ranged from 2 to 9 percentage points, were not associated with program
approach.
- Several programs representing both approaches slightly increased the
rate at which individuals left welfare without a job.
The proportion of control group members who were not employed and not receiving
AFDC in the last quarter of year 2 ranged from 12 to 37 percent. All of the
employment-focused programs and three of the seven education-focused programs
increased the percentage of sample members in this status at the end of two
years. (See Exhibit ES-9.) Increases were small in every
program, ranging from 2 to 5 percentage points. The majority of people in this
status reported having some other source of income and/or living with someone
else who worked or who had another source of income.
F. Income and Poverty
- Most programs had little or no effect on income.
In the second year of follow-up control group members averaged between $5,596
(Oklahoma City) and $9,322 (Detroit) in combined income from earnings, AFDC,
and Food Stamps. Few programs substantially altered these combined income levels;
in general, reductions in AFDC, Food Stamps, and other benefits matched or exceeded
earnings gains. However, in three programs — Grand Rapids and Riverside LFA
(employment-focused) and Riverside HCD (education-focused) — combined income
in the second year of follow-up was reduced by $230 to $571, or 3 to 7 percent.
(See Exhibit ES-10.) In Portland (employment-focused)
and Atlanta HCD (education-focused) combined income increased in the second
year by $425 and $295, or 5 and 4 percent, respectively. This combined income
measure includes estimates of the EITC; when EITC estimates are not included,
losses and gains are somewhat smaller, the Portland and Atlanta HCD gains are
no longer statistically significant, and a small loss in the Grand Rapids LFA
program becomes statistically significant.
- Because income changes were minor, few programs lifted many families
out of poverty. Some programs, however, had the effect of pushing a small
proportion of families deeper into poverty.
By design, the combined income from welfare and Food Stamp grants provides
less than poverty-level income. Only by working can people hope to attain enough
income to escape poverty. In the second year of follow-up between 11 and 26
percent of control group members had combined income from earnings, AFDC, Food
Stamps, and estimated EITC receipt that equaled or exceeded the federal poverty
level. Five programs increased the proportion of people living at or above poverty
by a small amount. (See Exhibit ES-10.) Portland was the
most successful, producing a 7.5 percentage point gain; impacts for other programs
were small, ranging from 2 to 3 percentage points. Program-control differences
for most of the other seven programs were positive but very small and not statistically
significant.
In the second year of follow-up between 19 and 48 percent of control group members
had combined income, including estimated EITC, totaling less than 50 percent
of the poverty line. Six programs (both employment- and education-focused) slightly
increased the proportion of sample members living below 50 percent of the poverty
level; they led to increases of between 2 and 6 percentage points in the proportion
of individuals living deeply in poverty.
G. Health Care Coverage and Child Care
Expenses
- Some programs that increased employment levels and decreased welfare
receipt also decreased reported rates of health care coverage.
At random assignment, almost all sample members in the evaluation had health
coverage because they were receiving AFDC and were automatically covered under
Medicaid. (In Oklahoma City, applicants for assistance whose eligibility was
not yet determined were included in the sample, so initial coverage rates there
were lower.) Over time, coverage rates declined for both program and control
group members, as some people left AFDC and did not replace their Medicaid coverage
with coverage from employers or other sources. By the end of the follow-up period
between 81 percent (Columbus) and 88 percent (Detroit) of control group members
reported having health coverage for themselves and their children. (This range
covers all sites except Oklahoma, where 68 percent reported coverage for themselves
and their children.)
Two employment-focused programs (Riverside LFA and Portland) and one education-focused
program (Columbus Integrated) that increased employment and decreased welfare
receipt at the end of follow-up period also lowered health care coverage levels
by 4 to 7 percentage points. (Impacts in Portland were not statistically significant,
but were just beyond the .1 level of statistical significance used as the standard
throughout this report.) Although many program group members who left AFDC (and
automatic Medicaid coverage) found jobs that provided health insurance, received
Transitional Medicaid benefits, or obtained alternative sources of coverage,
others were not able to replace the coverage they had under Medicaid. Some of
these respondents never received Transitional Medicaid, and others had exhausted
or had not restarted their benefits at the end of the two-year follow-up period.
Program group members in Oklahoma City reported even larger decreases in coverage
— 11 percentage points. This program decreased welfare receipt and appears to
have increased short-term employment — in jobs not reported to the states’ unemployment
insurance system — that did not provide health insurance, especially for sample
members’ children. The other seven programs in the evaluation did not affect
health coverage rates for respondents or children.
- Some programs increased child care use while employed and out-of-pocket
child care expenditures, an increase due to greater child care use among those
who found jobs as well as an overall increase in employment levels.
Between 29 and 44 percent of all control group members (including those who
never worked) used child care while employed at some point during the two-year
follow-up period. Seven programs — the four employment-focused programs and
three of the seven education-focused programs — produced moderate to large increases
in child care use while employed, ranging from 4 to 13 percentage points. Impacts
on paid child care use, that is, care paid for by either the sample member,
the welfare department, the father of the child(ren), or the sample member’s
employer, were found in nine programs and were similar in magnitude.
The increases in child care use and in paid care use while employed are not
entirely explained by the programs’ impacts on employment; in many programs,
of those who worked during the follow-up period, a greater proportion of program
group members than control group members used child care (or paid care) as well.
The likely explanation for this finding is that employed program group members
required or preferred more stable child care arrangements than employed control
group members. This could be partly due to differences in the characteristics
of the jobs acquired by program and control group members (for example, program
group members’ jobs were more likely to be full time). It is also possible that
program group members heeded the messages they were given by their caseworkers
— messages probably delivered more frequently to program than control group
members — concerning the importance of obtaining paid, stable child care.
Relatively few program and control group members
used transitional child care benefits. Five programs increased the use of such
benefits, but these effects were large only in Atlanta LFA and Portland, where
increases of 7 and 11 percentage points in the receipt of these benefits, respectively,
were found.
H. Well-Being of Children
- Some of the welfare-to-work programs affected children, although the
effects were not large or consistent across outcome measures or programs.
Notably, the found effects on children were both positive and negative.
The NEWWS Evaluation is one of the first random assignment evaluations of
mandatory welfare-to-work programs to examine programs’ effects on the well-being
of children. The children of sample members in the evaluation were often quite
young. As noted earlier, in three of the sites women with children as young
as age 3 were required to participate in welfare-to-work programs; in the other
four sites the mandate was extended to include women with children as young
as age 1. Because many of the child outcome measures used in the evaluation
pertained only to children of school age, however, the child impacts discussed
here are primarily for the subgroup of sample members who had no children under
age 6.
Control group members in the seven sites had, on average, two to three children.
Across the sites an average of one-quarter of the control group members in the
subgroup with no children under age 6 reported that at least one of their children
had been suspended from school at some point during the two-year follow-up period.
A smaller share of control group members — 8 percent to 23 percent, depending
on the site — reported having a child who had repeated a grade in school during
the follow-up period. A relatively small proportion of all control group members
— less than 8 percent in any site — reported that a child had been removed from
their care during the two-year follow-up period.
On measures of children’s behavioral adjustment, such as suspension from school,
eight of the programs produced at least one statistically significant effect
on children among the subgroup of families with no children under age 6. (See
Exhibit ES-11.) Three programs decreased the incidence of at least one behavioral
problem, and five programs increased the frequency of at least one. Only two
programs, however, had an effect on more than one behavioral adjustment measure.
Fewer program effects were found on children’s progress in school, such as grade
repetition, than on behavioral problems. Only two programs had any effects in
this area, but, notably, these effects were favorable. Effects on children’s
health and safety were also rare. Only two programs had any effect on children
being removed from their mother’s care (small increases in the incidence of
this event) and no programs affected the likelihood of children being taken
to the hospital because of an accident, injury, or poisoning.
- No explanations are clearly evident regarding the mechanisms through
which some of the programs affected children.
Program-specific differences in employment/education focus, sanctioning practices,
and impacts on adult educational attainment, employment, and household composition
could not be clearly linked to the programs’ effects on children. It could be
that reductions in income played a role: some evidence suggests that those few
programs that raised earnings levels, but reduced welfare and Food Stamps even
more, resulted in adverse effects on children. In addition, child care policies
may have made a difference in the programs’ effects on children. Finally, the
envi- ronments in which the programs operated (for example, their labor markets)
may have been important. Further research is needed to decide if or how these
factors mediate the effects of welfare-to-work programs on children.3
I. Key Subgroups of Welfare Recipients
- Interestingly, employment-focused
programs were more likely than education-focused programs to achieve employment
and earnings gains over the two-year follow-up period for those who entered
the study without a high school diploma or GED certificate, but the difference
in impacts narrowed by the end of the second year.
Many programs produced employment
and earnings gains for both those with and those without a high school diploma
or GED at random assignment. (See Exhibit ES-12.) Among
non-graduates all of the employment-focused programs boosted two-year employment
levels — by more than 10 percentage points in Riverside LFA and Portland — and
increased average earnings per program group member in year 2. In contrast,
only three of the seven education-focused programs increased employment levels
over two years, and only two programs increased year 2 average earnings.
At
the end of the follow-up, however, one education-focused program (Columbus Integrated)
was achieving the largest earnings gains of any program for nongraduates, and
two others (Grand Rapids HCD and Columbus Traditional) attained larger earnings
and/or employment impacts than two of the employment-focused programs (Atlanta
and Riverside LFA). These results suggest that additional follow-up will be
necessary to determine which kind of program approach is more effective for
nongraduates in the long run.
- Several programs produced moderate to large employment and earnings gains
for the “most disadvantaged” sample members.
Between
5 percent (Oklahoma City) and 28 percent (Riverside HCD) of the sample members
in each site were welfare recipients who at study entry did not have a high
school diploma or GED, had not worked in the prior year, and had received AFDC
cumulatively for two years or more. Only a small proportion of control group
members in this most disadvantaged subgroup became employed on their own during
the two-year follow-up period (less than half in any site).
Five programs (Grand Rapids and Riverside LFA and HCD and Portland) increased
employment and earnings for the most disadvantaged subgroup. (See Exhibit
ES-13.) Each of these programs increased the proportion who worked for pay
during the follow-up period by more than 10 percentage points. Gains in year
2 earnings were moderate ($800 or more) in two employment-focused programs (Grand
Rapids LFA and Portland) and smaller (between $605 and $667) in the three other
programs. These programs and two others (Detroit and Columbus Integrated) also
reduced the amount of time that these most disadvantaged individuals received
AFDC during the two-year follow-up period.
- Overall, both program approaches were less successful in helping people
who had worked in the year before program entry, that is, a less disadvantaged
subgroup of the caseload.
Between
22 percent (Riverside HCD) and 55 percent (Oklahoma City) of sample members
in each site had worked for pay during the year prior to random assignment;
63 to 89 percent of control group members with this characteristic, depending
on the site, became employed at some point during the two-year follow-up period.
Only
two employment-focused programs (Grand Rapids LFA and Portland) and one education-focused
program (Grand Rapids HCD) increased both employment and earnings beyond what
would have happened in the absence of the programs, for these sample members.
Given the large proportion of control group members in this subgroup with employment
and earnings in the two-year follow-up, impacts for this subgroup, when expressed
as a percentage change, were rather small.
V. Conclusions
This evaluation, which used a random assignment experiment,
provides solid information about the effectiveness of various types of welfare-to-work
program approaches. Its unusually strong research design isolates the effects
of the programs themselves; the results reported above thus can be confidently
attributed to the programs operated in the seven sites and not to improvements
in the sites’ labor markets, population changes, or other policy reforms.
The
report’s findings, in conjunction with those of previous studies, suggest that
strongly employment-focused programs that offer a variety of employment services
are more effective than programs that offer primarily job search or education
and training. Portland’s employment-focused, varied first activity program stands
out as unusually successful among the 11 programs in this evaluation. The Riverside
GAIN (Greater Avenues for Independence) program of the late 1980s, often considered
the benchmark for other welfare-to-work programs, was also an employment-focused,
varied first activity program. Both Portland and Riverside GAIN substantially
increased employment levels, produced the largest earnings gains ever found
for mandatory welfare-to-work programs, and had large impacts on welfare receipt.
Both were successful for a wide range of subgroups, including the more disadvantaged
members of the caseload. Operationally, the programs stressed the importance
of finding jobs and enforced program participation requirements, but they offered
many different services, including job search (along with job development),
short-term education, and, in Portland, training. In both programs people considered
not ready to enter the labor market were first assigned to basic education or,
in Portland, to training or life skills classes. Although the 1996 welfare law
encourages an employment focus, the available research findings indicate that
states can augment the success of their programs by offering education and training
as well as job search.
The
report also illustrates, however, the limitations of even high-performing welfare-to-work
programs: Although all of the programs in this evaluation had some positive
effects, they generally did not produce large changes in people’s lives during
the follow-up period. For example, the programs helped a substantial number
of individuals replace income from AFDC and Food Stamps with income from jobs,
but had not, as of two years, lifted many families out of poverty. (Additional
years of follow-up may show income gains, partly because of the increase in
the value of the EITC in recent years.) Also, although all programs reduced
welfare dependency to some degree, many people were still on welfare at the
end of the two-year follow-up period (between 38 and 70 percent of those subject
to the programs, depending on the site).
Proponents of welfare time limits contend that the impending
assistance cutoff will spur people into the labor market and promote self-sufficiency.
The programs in this evaluation, which are similar to many programs being run
under the new welfare law, operated without such a welfare time limit. (In addition,
these programs did not try to meet the new law’s participation goals, impose
full-family financial sanctions, or put in place the generous financial work
incentives of many current programs. They also did not have available to them
the recent and substantial increases in federal funding for child care or expanded
eligibility for health insurance through Medicaid and the State Children’s Health
Insurance Program.) Future research will indicate whether programs run in conjunction
with time limits or other recent welfare policy changes will be considerably
more successful than the programs previously operated. The present study does
suggest, however, that strategies are needed to enable newly employed individuals
to keep working and to help them raise their earnings. Even in the very successful
Portland program, less than one-third of all program group members worked in
all four quarters of the second year of follow-up; less than one fifth of the
total sample earned at least $10,000 in that same year. Future programs will
need to produce more sustained employment impacts and much bigger earnings impacts
than those produced by any pre-TANF program that has been studied so far if
large numbers of people are to find employment that can adequately support their
children before reaching a welfare time limit.

1
P ub. L. No. 104-193.
2 Riverside, Grand Rapids, and Portland implemented an additional random assignment
study of the effects — independent of participation in welfare-to-work program
activities — of referring AFDC applicants and recipients to a welfare-to-work program.
Random assignment for this study took place at income maintenance offices. The
results of this supplemental study are not included in this report.
3 The Child Outcomes Study, conducted by Child
Trends as part of the NEWWS Evaluation, also examines the effects of welfare-to-work
programs on the children of LFA, HCD, and control group members in Atlanta,
Grand Rapids, and Riverside. This study uses a more comprehensive set of data
about young children’s development, but only for children aged 3 to 5 at random
assignment. See Sharon M. McGroder et al., Impacts
on Young Children and Their Families Two Years After Enrollment: Findings from
the Child Outcomes Study (Washington, D.C.: U.S. Department of Health and
Human Services and U.S. Department of Education, 2000). For a synthesis of the
child research conducted thus far as part of the NEWWS Evaluation, see Gayle
Hamilton,Do Mandatory Welfare-to-Work
Programs Affect the Well-Being of Children? A Synthesis of Child Research Conducted
as Part of the National Evaluation of Welfare-to-Work Strategies (Washington,
D.C.: U.S. Department of Health and Human Services and U.S. Department of Education,
2000).
Selected Publications from This Evaluation
From Welfare to Work. Judith M. Gueron and Edward Pauly. 1991. New
York: Russell Sage Foundation.
Early Lessons from Seven Sites. Gayle Hamilton and Thomas Brock. 1994. Washington,
D.C.: U.S. Department of Health and Human Services and U.S. Department of Education.
Five Years After: The Long-Term Effects of Welfare-to-Work Programs. Daniel
Friedlander and Gary Burtless. 1995. New York: Russell Sage Foundation.
Adult Education for People on AFDC: A Synthesis of Research. Prepared by Edward
Pauly, MDRC. 1995. Washington, D.C.: U.S. Department of Health and Human Services,
Office of the Assistant Secretary for Planning and Evaluation; and U.S. Department
of Education
Early Findings on Program Impacts in Three Sites. Prepared
by Stephen Freedman and Daniel Friedlander, MDRC. 1995. Washington, D.C.: U.S.
Department of Health and Human Services, Office of the Assistant Secretary for
Planning and Evaluation; and U.S. Department of Education.
How Well Are They Faring? AFDC Families with Preschool-Aged Children in Atlanta
at the Outset of the JOBS Evaluation. Prepared by Kristin A. Moore, Martha
J. Zaslow, Mary Jo Coiro, and Suzanne M. Miller, Child Trends, Inc., and Ellen
B. Magenheim, Swarthmore College. 1995. Washington, D.C.: U.S. Department of
Health and Human Services, Office of the Assistant Secretary for Planning and
Evaluation; and U.S. Department of Education.
Monthly
Participation Rates in Three Sites and Factors Affecting Participation Levels
in Welfare-to-Work Programs.
Prepared by Gayle Hamilton, MDRC. 1995. Washington, D.C.: U.S. Department of Health
and Human Services, Office of the Assistant Secretary for Planning and Evaluation;
and U.S. Department of Education.
Work First:
How to Implement an Employment-Focused Approach to Welfare Reform.
Amy Brown. 1997. New York: MDRC.
Changing to a Work First Strategy: Lessons
from Los Angeles County’s GAIN Program for Welfare Recipients. Evan Weissman.
1997. New York: MDRC.
Educating Welfare Recipients for Employment and Empowerment:
Case Studies of Promising Programs. Prepared by Janet Quint, MDRC. 1997. Washington,
D.C.: U.S. Department of Education, Office of the Under Secretary and Office of
Vocational and Adult Education; and U.S. Department of Health and Human Services.
Evaluating
Two Welfare-to-Work Program Approaches: Two-Year Findings on the Labor Force
Attachment and Human Capital Development Programs in Three Sites. Prepared
by Gayle Hamilton, Thomas Brock, Mary Farrell, Daniel Friedlander, and Kristen
Harknett, MDRC. 1997. Washington, D.C.: U.S. Department of Health and Human
Services, Administration for Children and Families and Office of the Assistant
Secretary for Planning and Evaluation; and U.S. Department of Education.
Implementation,
Participation Patterns, Costs, and Two-Year Impacts of the Portland (Oregon)
Welfare-to-Work Program. Prepared by Susan Scrivener, Gayle Hamilton,
Mary Farrell, Stephen Freedman, Daniel Friedlander, Marisa Mitchell, Jodi Nudelman,
and Christine Schwartz, MDRC. 1998. Washington, D.C.: U.S. Department of Health
and Human Services, Administration for Children and Families and Office of the
Assistant Secretary for Planning and Evaluation; and U.S. Department of Education
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