Welfare rolls declined after Temporary Assistance for Needy Families became law in 1996, and there was widespread consensus that its reforms were a bipartisan success story. But the onslaught of the Great Recession exposed serious flaws in the law. This memo describes a two-part solution based on experience and evidence.
Subsidized employment programs use public funds to create jobs for the unemployed. This two-page memo describes how they can provide short-term income support to individuals with serious barriers to employment or to broader groups during poor economic times — while having positive effects on reducing recidivism, increasing child support payments, or reducing reliance on welfare.
In this essay, originally published in Spotlight on Poverty and Opportunity, Dan Bloom reviews what research says about subsidized jobs programs – and how they can be a strategy both for tough economic times and for the hard-to-employ in better labor markets.
Which Improves Welfare Recipients’ Earnings More in the Long Term?
Findings after 10-15 years from the National Evaluation of Welfare-to-Work Strategies suggest that while initially stressing job search for participants led to greater earnings in the short term than did initially stressing education and training, neither approach produced substantial effects past the five-year follow-up period.
Seeds of a Revolution
This working paper describes the revolution in the United States in support for the use of randomized controlled experiments to evaluate social programs. Focusing on the welfare reform studies conducted between 1970 and the early 2000s, it presents the major challenges to winning this support and how they were overcome.