NCPA


Work Replacing Welfare

Evidence indicates that the best way to move welfare recipients from dependency to work is to put them in jobs as quickly as possible in welfare worker terms, "labor force attachment." In contrast, programs to educate and train recipients to qualify for better jobs called "human capital development" accomplish little more than traditional welfare.

A 1994 national evaluation of state-run employment and training programs by Manpower Demonstration Research Corporation shows that compared to control groups receiving welfare as usual:

Evidence from nongovernmental initiatives also demonstrates the effectiveness of work programs. For example, a private nonprofit program in Washington state, "Washington Works," helps AFDC women find entry-level jobs. Voluntary participants receive 10 to 14 weeks of intensive training to improve their personal and work skills. Businesses that employ them receive a subsidy of up to 50 percent of their wages for up to three months.

The program claims a placement rate of 80 percent, and 85 percent of placements are full-time positions. Eighty-seven percent are still off public assistance after 12 months. Graduates have a greater tendency to stay with their first employer, with 65 percent still with their first employer after 12 months.

Many states are now instituting welfare reform programs that require work. For example, a pilot welfare reform program that began in six Oregon counties in October 1994, called JOBS Plus, required public assistance recipients to work. It was extended statewide in 1995. Cooperating businesses and nonprofit agencies agree to hire welfare recipients who forgo monthly food stamps and AFDC checks in exchange for paychecks, and the state reimburses employers for wages paid, and for payroll taxes.

Source: Kriss Sjoblom, Kim L. Gorsuch and Amy Silbert, "What Works for Welfare? Recent Experiences in Washington and Oregon," Special Report March 5, 1996, Washington Research Council, 1301 5th Avenue, Suite 2810, Seattle, WA 98101, (206) 467-7088.


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