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An Update on the Effects of Four Earnings Supplement Programs on Employment, Earnings, and Income
Four programs that supplemented the earnings of low-income adults increased employment, earnings, and income — particularly for the most disadvantaged — but these effects generally faded after the programs ended.
Building on findings that the Minnesota Family Investment Program (MFIP) resulted in higher rates of marital stability among two-parent recipient families who participated in this initiative that provided financial incentives to welfare recipients who worked, this report documents MFIP’s long-term effects on marriage and divorce among participants in the program’s sample of nearly 2,500 two-parent families who were married or cohabiting at study entry.
An evaluation of the Minnesota Family Investment Program (MFIP), the state’s welfare waiver program, found that the program produced substantially larger increases in employment and earnings among welfare recipients living in public or subsidized housing than among recipients in private housing. This paper examines several possible reasons that may account for these findings, including differences in characteristics between the two groups of recipients, differences in their proximity to jobs, differences in residential stability, which might aid in the transition to work, and interactions between MFIP’s work incentives and the public/subsidized housing rent rules. The evidence, although indirect, suggests that interactions between MFIP rules and the rent rules in public housing helped to produce larger employment impacts for residents in public or subsidized housing.
Implementation and 18-Month Impacts of the Minnesota Family Investment Program
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