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February 2002
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Jobs First
Final Report on Connecticut's Welfare Reform Initiative
Dan Bloom, Susan Scrivener, Charles Michalopoulos, Pamela Morris, Richard Hendra, Diana Adams-Ciardullo, Johanna Walter
with
Wanda Vargas
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| Since its launch in 1996, Connecticut's
Jobs First program has attracted national attention because
it includes all the key elements of the 1990s welfare reforms:
time limits, financial work incentives, and work requirements.
Specifically, Jobs First limits families to 21 cumulative
months of cash assistance unless they receive an exemption
or extension. It includes an unusually generous financial
work incentive that allows employed recipients to retain their
full welfare grant as long as they earn less than the federal
poverty level. And it requires recipients to work or to participate
in employment services designed to help them find jobs quickly.
Jobs First is a focus of policymaker interest, too, as one
of the first programs of its kind to be subject to a rigorous,
large-scale evaluation. MDRC studied Jobs First's effects
under a contract with the Connecticut Department of Social
Services. Nearly 5,000 single-parent welfare applicants and
recipients in Manchester and New Haven were assigned, at random,
to Jobs First or to the Aid to Families with Dependent Children
(AFDC) group, which was subject to the prior welfare rules.
Jobs First's effects were estimated by comparing how the two
groups fared over a four-year period. (Connecticut modified
the Jobs First program after the period studied in this evaluation.)
Key Findings
Jobs First made progress towards its key goal of replacing
welfare with work: By the end of the four-year study period,
51 percent of the Jobs First group were working and not on
welfare, compared with 42 percent of the AFDC group. Only
19 percent of Jobs First families were on welfare by the end
of the study, compared with 28 percent of AFDC families.
- Jobs First boosted employment and earnings. Over
four years, Jobs First group members earned 7 percent (about $1,800)
more, on average, than their AFDC counterparts. Gains were especially
large - 37 percent (about $3,600) - for recipients facing the most serious
barriers to employment.
- The program's effects on welfare and income changed
over time. Initially, the financial work incentive allowed Jobs First
families to receive more in welfare benefits than AFDC families; they
also had more income. But once Jobs First families began reaching the
time limit, their welfare receipt was reduced and their income gains
disappeared. Over four years, families in the two groups received about
the same amount in welfare payments, but Jobs First families had 6 percent
(about $2,400) more, on average, in income from public assistance and
earnings. Jobs First had few consistent effects on levels of material
hardship, which were high for families in both groups.
- Just over half of Jobs First recipients reached
the time limit in the four-year study period. About two-thirds of those
recipients were granted at least one six-month benefit extension because
they were not working or were earning very little and were deemed to
have made a good-faith effort to find a job. (Most who received an extension
left welfare in the next year or two.) Conversely, most recipients whose
grant was closed because of the time limit were working.
- Jobs First generated some small improvements in
the behavior of participants' young children but had mixed effects on
adolescent children.
The final results from the Jobs First evaluation show that
time limits - at least when the economy is exceptionally strong
and most nonworking recipients who reach the time limit are
allowed to continue receiving benefits - can be implemented
without having widespread severe consequences for families.
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Funders
MDRC's evaluation of
Connecticut's Jobs First program was funded by a contract with
the Connecticut Department of Social Services and with support
from the U.S. Department of Health and Human Services, the Ford
Foundation, and the Smith Richardson Foundation.
The study of Jobs First also benefited from the support of
the Project on State-Level Child Outcomes, which is co-sponsored
by the U.S. Department of Health and Human Services' Administration
for Children and Families (ACF) and Office of the Assistant
Secretary for Planning and Evaluation (ASPE). Additional federal
funding to support the project was provided by the Centers
for Disease Control, National Institute of Child Health and
Human Development, and U.S. Department of Agriculture. Private
foundation funding has been provided by the Annie E. Casey
Foundation, David and Lucille Packard Foundation, Edna McConnell
Clark Foundation, George Gund Foundation, and Smith Richardson
Foundation.
The findings and conclusions presented in this report do not necessarily represent the official positions
or policies of the funders.
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