Providing earnings supplements to encourage and sustain employment: Lessons from research and practice

Record Description

This brief presents findings, and lessons for policy and practice, from MDRC-conducted studies of five programs that provided earnings supplements and that have been rigorously evaluated using a random assignment research design: the Canadian Self-Sufficiency Project (SSP), the Minnesota Family Investment Program (MFIP), Milwaukee’s New Hope Project, the Texas Employment Retention and Advancement (ERA) program, and the United Kingdom Employment Retention and Advancement (UK ERA) program. The evaluations primarily focus on the effects of the programs on single parents. SSP, MFIP, and New Hope operated some time ago (primarily in the 1990s), but long-run follow-up data are available only recently. In addition, relatively new evaluation results are available from the more recent Texas ERA and UK ERA programs.

This brief discusses key findings from evaluations of these earnings supplement programs and then provides lessons for both policy and practice that have emerged from these initiatives. While each program had its own set of unique circumstances and lessons (and none is currently operating), the focus here is on common themes across the initiatives. (author abstract)

Record Type
Posting Date
Combined Date
2010-12-31T19:00:00
Source
Region
City/County
Publication Date
2011-01-01

Working toward Wellness: Telephone care management for Medicaid recipients with depression, thirty-six months after random assignment

Record Description

Although many public assistance recipients suffer from depression, few receive consistent treatment. This report presents 36-month results from a random assignment evaluation of a one-year program that provided telephonic care management to encourage depressed parents, who were Medicaid recipients in Rhode Island, to seek treatment from mental health professionals. Called “Working toward Wellness” (WtW), the program represents one of four strategies being studied in the Enhanced Services for the Hard-to-Employ Demonstration and Evaluation Project to improve employment for low-income parents who face serious barriers to employment. The project is sponsored by the Administration for Children and Families and the Office of the Assistant Secretary for Planning and Evaluation in the U.S. Department of Health and Human Services, with additional funding from the Department of Labor.

This report focuses on assessing the success of the program’s efforts to improve depression symptoms and work-related outcomes, two years after the end of the intervention. In WtW, master’s-level clinicians (“care managers”) telephoned the study participants in the program group to encourage them to seek treatment, to make sure that they were complying with treatment, and to provide telephonic counseling. The effects of the program are being studied by examining 499 depressed Medicaid recipients with children; these parents were randomly assigned to either the program group or the control group from November 2004 to October 2006. (author abstract)

What strategies work for the hard-to-employ? Final results of the hard-to-employ demonstration and evaluation project and selected sites from the Employment Retention and Advancement Project

Record Description

In the context of a public safety net focused on limiting dependency and encouraging participation in the labor market, policymakers and researchers are especially interested in individuals who face obstacles to finding and keeping jobs. The Enhanced Services for the Hard-to-Employ (HtE) Demonstration and Evaluation Project was a 10-year study that evaluated innovative strategies aimed at improving employment and other outcomes for groups who face serious barriers to employment. The project was sponsored by the Administration for Children and Families (ACF) Office of Planning, Research and Evaluation in the U.S. Department of Health and Human Services, with additional funding from the U.S. Department of Labor. This report describes the HtE programs and summarizes the final results for each program. Additionally, it presents information for three sites from the ACF-sponsored Employment Retention and Advancement (ERA) project where hard-to-employ populations were also targeted.

Three of the eight models that are described here led to increases in employment. Two of the three — large-scale programs that provided temporary, subsidized "transitional" jobs to facilitate entry into the workforce for long-term welfare recipients in one program and for ex-prisoners in the other — produced only short-term gains in employment, driven mainly by the transitional jobs themselves. The third one — a welfare-to-work program that provided unpaid work experience, job placement, and education services to recipients with health conditions — had longer-term gains, increasing employment and reducing the amount of cash assistance received over four years. Promising findings were also observed in other sites. An early-childhood development program that was combined with services to boost parents’ self-sufficiency increased employment and earnings for a subgroup of the study participants and increased the use of high-quality child care; the program for ex-prisoners mentioned above decreased recidivism; and an intervention for low-income parents with depression produced short-term increases in the use of in-person treatment. But other programs — case management services for low-income substance abusers and two employment strategies for welfare recipients — revealed no observed impacts.

While these results are mixed, some directions for future research on the hard-to-employ emerged:

  • The findings from the evaluations of transitional jobs programs have influenced the design of two new federal subsidized employment initiatives, which are seeking to test approaches that may achieve longer-lasting effects.

  • The HtE evaluation illustrates some key challenges that early childhood education programs may face when adding self-sufficiency services for parents, and provides important lessons for implementation that can guide future two-generational programs for low-income parents and their young children.

  • Results from the HtE evaluation suggest future strategies for enhancing and adapting an intervention to help parents with depression that may benefit low-income populations.

  • Evidence from the HtE evaluation of employment strategies for welfare recipients along with other research indicates that combining work-focused strategies with treatment or services may be more promising than using either strategy alone, especially for people with disabilities and behavioral health problems.

(author abstract)

Record Type
Posting Date
Combined Date
2011-12-31T19:00:00
Source
Region
City/County
Publication Date
2012-01-01

TANF recipients with barriers to employment

Record Description

Many parents receiving assistance from Temporary Assistance for Needy Families (TANF) face serious barriers to employment. Sometimes called the “hard to employ,” these parents typically require enhanced assistance to prepare for, find, and keep jobs. Health issues and disability, substance abuse, criminal records, domestic violence, limited education, and responsibilities for disabled children or parents all stand in the way. Federal TANF rules influence state policies toward the hard to employ. Yet states vary considerably in approaches to serving this population. (author abstract)

Record Type
Posting Date
Combined Date
2010-12-31T19:00:00
Source
Region
City/County
Publication Date
2011-01-01

Improving employment and earnings for TANF recipients

Record Description

Over the past two decades, federal and state policymakers have dramatically reshaped the nation’s system of cash welfare assistance for low-income families. Through national legislation and state-initiated reform and experimentation, policymakers transformed Aid to Families with Dependent Children (AFDC), which became Temporary Assistance for Needy Families (TANF) in 1996. During this period, state approaches to welfare reform have varied considerably. Nevertheless, almost all reform efforts have encouraged adult welfare recipients to work more and, as a result, to reduce their families’ long-term reliance on welfare benefits. In addition, many state welfare pro-grams have incorporated financial incentives that have encouraged work and supplemented the incomes of employed TANF recipients, and have also experimented with ways to help workers—employed TANF recipients and those who leave the TANF rolls with employment—retain employment and advance in the labor market. (author abstract)

Record Type
Posting Date
Combined Date
2011-12-31T19:00:00
Source
Region
City/County
Publication Date
2012-01-01

Employment Retention and Advancement (ERA) Demonstration Delivery, Take-Up, and Outcomes of In-Work Training Support for Lone Parents

Record Description

From MDRC, this report presents findings from Britain’s Employment Retention and Advancement (ERA) demonstration program, which was designed to improve the employment prospects of low-paid and long-term unemployed individuals. Researchers analyzed take-up, service delivery, and outcomes of the program and found that the program increased the likelihood of participants taking occupationally relevant courses and training, which may have been impacted by advisory support and financial incentives.

Record Type
Posting Date
Combined Date
2011-02-28T19:00:00
Source
Region
City/County
Publication Date
2011-03-01

Innovating Under Pressure: The Story of the 2009 Recovery Act Summer Youth Employment Initiative

Record Description

Prepared for the U.S. Department of Labor, Employment and Training Administration, Office of Policy Development, Evaluation and Research by The Center for Youth and Communities and the Sillerman Center for the Advancement of Philanthropy, Heller School for Social Policy and Management, Brandeis University, this report details the implementation of the Recovery Act summer youth employment initiative in four communities. Researchers conducted interviews and site visits in Chicago, Illinois; Detroit, Michigan; Indianapolis and Marion County, Indiana; and Phoenix and Maricopa County, Arizona. Authors provide information on implementation, innovation utilized by the sites, and best practices for future program development.

Record Type
Posting Date
Combined Date
2011-12-31T19:00:00
Source
Region
City/County
Publication Date
2012-01-01

An economic framework and selected proposals for demonstrations aimed at strengthening marriage, employment, and family functioning outcomes

Record Description

The increasing recognition of the importance of marriage for the social and economic well-being of children has led to demonstrations aimed at strengthening and stimulating healthy marriages. The next step is to ensure that factors closely linked with healthy marriages are addressed as well. This paper brings together research findings and policy ideas about the interactions between marriage, employment, and family functioning. It presents a framework and proposes several demonstrations aimed at improving employment and family outcomes for disadvantaged populations. The appendix reviews an extensive body of research on specific linkages between marriage, employment, and family functioning. (author abstract)

Record Type
Posting Date
Combined Date
2007-11-30T19:00:00
Source
Region
City/County
Publication Date
2007-12-01

Supplemental Nutrition Assistance Program, Employment and Training: Moving Low-Skill SNAP Recipients Toward Self-Sufficiency

Record Description

The Supplemental Nutrition Assistance Program Employment & Training (SNAP E&T) was designed to help move individuals towards exiting SNAP and reaching economic self-sufficiency through gainful employment. Authored by the National Skills Coalition with funding from the Annie E. Casey Foundation, this user’s guide was designed to provide workforce development stakeholders with information on the Supplemental Nutrition Assistance Program Employment & Training (SNAP E&T, formerly Food Stamp Employment & Training or FSET). Authors provide an overview as well as information for designing and implementing a SNAP E&T program.

Record Type
Posting Date
Combined Date
2012-01-31T19:00:00
Source
Region
City/County
Publication Date
2012-02-01

Benefit-cost findings for three programs in the Employment Retention and Advancement (ERA) Project

Record Description

This report presents an analysis of the financial benefits and costs of three diverse programs designed to increase employment stability and career advancement among current and former welfare recipients. The programs are part of the national Employment Retention and Advancement (ERA) project, which tested 16 models in eight states. Each program was evaluated using a random assignment research design, whereby individuals were assigned, at random, to the ERA program group or to a control group that received services generally available in the sites’ communities. MDRC is conducting the ERA project under contract to the Administration for Children and Families (ACF) in the U.S. Department of Health and Human Services.

The analysis focuses on three programs that operated in four sites:

  • Corpus Christi and Fort Worth, Texas. This ERA program targeted welfare applicants and recipients who were seeking work; it used financial incentives and other services to help participants find jobs, stay employed, and increase their earnings.
  • Chicago, Illinois. This ERA program targeted welfare recipients who were working steadily but earning too little to leave the welfare rolls; partly by helping individuals to change jobs, it aimed to increase participants’ earnings.
  • Riverside County, California. The Riverside Post-Assistance Self-Sufficiency (PASS) ERA program targeted individuals who had left welfare and were working; services were delivered primarily by community-based organizations to promote retention and advancement and, if needed, reemployment.

These programs were selected for this report because, as described in other ERA documents, comparisons between the program and control groups indicated that these programs increased individuals’ employment and earnings — the primary goal of the project. The benefit-cost analysis presented here provides an overall accounting of the financial gains and losses produced by the programs from three perspectives: those of the ERA program group members, the government budget, and society as a whole. The analysis also examines whether the government’s investment in these programs was cost-effective. The study’s key findings follow:

  • Program group members were better off financially as a result of the ERA programs. All three programs produced net financial gains from the perspective of program group members.
  • From the perspective of the government budget, Riverside PASS essentially broke even, but the ERA programs in Chicago and Texas did not produce net savings. That is, the additional amount spent on ERA services was not recouped by welfare savings and increased tax revenue.
  • All three ERA programs produced financial gains for society as a whole. Combining both net gains and net losses from the perspectives of the program group and the government budget, the programs led to financial increases for society. Riverside PASS had the largest gains because it increased program group members’ income at no net cost to the government.
  • For every dollar that the government invested in these ERA programs, program group members gained more than one dollar. This suggests that the three ERA programs were cost-effective.

As part of the ERA project, over a dozen different programs have been evaluated, and most did not produce consistent increases in employment retention or advancement, suggesting that it is difficult for these types of programs to attain positive effects. The three programs highlighted here did have positive effects, and while these effects were generally achieved at a cost to the government, all three programs produced net financial gains for program group members, and they did so by amounts that were more than the government spent to provide the services. (author abstract)

Record Type
Posting Date
Combined Date
2009-12-31T19:00:00
Source
Region
City/County
Publication Date
2010-01-01