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The Critical Role of Nonprofits, Public Agencies, and Social Enterprises
The surging unemployment rate brought on by the COVID-19 pandemic is likely to remain unusually high for many months. The findings from two large-scale studies suggest that public/nonprofit employers are much more likely to hire disadvantaged workers whose wages are subsidized than are private, for-profit employers.
A Synthesis of Findings from Evaluations of 13 Programs
In 2010, the U.S. Department of Health and Human Services and the U.S. Department of Labor launched complementary large-scale research projects on the effectiveness of the latest generation of subsidized employment models. This report summarizes findings from the studies and discusses the implications for practitioners, policymakers, and researchers.
A voluntary program in San Francisco arranged interviews for disadvantaged job-seekers and offered employers temporary wage subsidies to hire them. This study analyzes the one-year, per person program costs and the cost of non-program services, including education and training. The analysis indicates that the program was likely cost-beneficial from society’s perspective.
This study analyzes the per person cost of a subsidized employment program for enrollees in Minnesota’s Temporary Assistance for Needy Families who could not otherwise find employment, and the costs of other services that all sample members may have received. The program’s primary goal was to move participants into unsubsidized employment.
Final Impacts and Costs of the Los Angeles County Transitional Subsidized Employment Program
Los Angeles County tested two different models of subsidized employment for Temporary Assistance for Needy Families recipients: one subsidizes the wages of individuals placed at employers in the nonprofit or public sector, and the other offers wage subsidies to for-profit employers. This report offers findings from implementation, impact, and cost studies.
In the first year after random assignment, welfare recipients who participated in Minnesota’s subsidized employment program were more likely than control group members to have been employed; this modest effect continued after the subsidies ended.
Subsidized jobs programs seek to increase employment and earnings among individuals who have not been able to find jobs on their own. This report presents the perspectives of participants of 11 such programs. Although there were successes, the majority could not translate their experiences into unsubsidized work.
Subsidized Employment Programs Serving American Indians and Alaska Natives
This report describes the ways in which eight TANF programs primarily serving American Indian and Alaska Native (AIAN) families use subsidized employment. It found that their use of subsidized employment has the potential to provide work opportunities for AIAN individuals with limited work experience and barriers to employment.
This report presents findings from an analysis of the effects of subsidized/transitional programs on subjective well-being, or how participants feel about their current life situations. The analysis found that the programs had positive effects on both employment and well-being while the programs operated, but these effects dissipated after the programs ended.
Implementation and Early Impacts of the STEP Forward Program
This report presents implementation and interim impact findings from a random assignment evaluation of STEP Forward, a subsidized employment program in San Francisco serving a diverse group of low-income job seekers. In the first year, STEP Forward boosted employment and earnings, which suggests that participants obtained better jobs.
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