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Alternative strategies for increasing employment
1Urban Institute, Washington, DC, USA.
The Future of Children
|April 1, 1997
Summary
Welfare-to-work programs can boost employment and earnings for recipients, but often result in only modest financial gains. Effective program design and strong labor market connections are crucial for success.
Area of Science:
- Social policy
- Labor economics
- Program evaluation
Background:
- States are reforming welfare systems to promote work and self-sufficiency.
- Work and training programs for disadvantaged individuals have a long history.
Purpose of the Study:
- Summarize findings from evaluations of strategies to increase employment and earnings.
- Review lessons on program design and management from outcome and implementation studies.
Main Methods:
- Net impact evaluations comparing program participants to a control group.
- Studies analyzing program outcomes and implementation in real-world settings.
Main Results:
- Programs encouraging or requiring work activities increase employment and earnings.
- Even successful programs show limited earnings growth, often insufficient to lift recipients out of poverty.
- Programs can reduce welfare costs.
Conclusions:
- Program effectiveness depends on participation rates, implementation quality, and local labor market integration.
- Policy and implementation strategies are key to optimizing welfare-to-work program outcomes.