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.
Final Results of the Hard-to-Employ Demonstration and Evaluation Project and Selected Sites from the Employment Retention and Advancement Project
Final Results from the Evaluation of the Center for Employment Opportunities (CEO) Transitional Jobs Program
Ex-prisoners who had access to CEO’s transitional jobs program were less likely to be convicted of a crime and reincarcerated. The effects were particularly large for those ex-prisoners who enrolled in the program shortly after release. The recidivism reductions mean that the program is cost-effective — generating more in savings than it cost.