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 commentary published by Spotlight on Poverty, MDRC President Gordon Berlin makes the case for creating a more flexible safety net that continues to reward work when jobs are plentiful, provides employment to poor families when jobs disappear, and begins to address the problem of stagnant wages at the low end of the labor market.
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.