This report presents a preliminary analysis of the cost of operating Britain’s Employment Retention and Advancement (ERA) demonstration, which is being evaluated though a large-scale randomised control trial. This assessment of costs will become an important element of the full cost-benefit analysis to be presented in future ERA reports.

The largest ever random assignment test of a social policy in Britain is being applied in a demonstration of the Employment Retention and Advancement (ERA) program. This report, written by MDRC and British colleagues as part of a consortium of social policy research firms and produced for the UK Department for Work and Pensions, examines how well random assignment worked.

Although much is known about how to help welfare recipients find jobs, there is less hard evidence about what can be done to help current and former recipients and other low-wage workers stay employed or advance in the labor market. This paper looks closely at one strategy — providing earnings supplements, or stipends, to current and former welfare recipients who maintain stable full-time employment — that was used at sites in Texas and in the United Kingdom.