Subsidized employment programs provide jobs to people who cannot find employment in the regular labor market and use public funds to pay all or some of their wages. Part of our “Looking Forward” series, this policy memo describes how these programs may be part of the answer for the long-term unemployed in the aftermath of the Great Recession.
Using an alternative to classical statistics, this paper reanalyzes results from three published studies of interventions to increase employment and reduce welfare dependency. The analysis formally incorporates prior beliefs about the interventions, characterizing the results in terms of the distribution of possible effects, and generally confirms the earlier published findings.
After one year, CEO’s transitional jobs program generated a large but short-lived increase in employment for ex-prisoners. A subgroup of recently released prisoners showed positive effects on recidivism: They were less likely to have their parole revoked, to be convicted of a felony, and to be reincarcerated than the control group.