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The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes

  • Andrew Dyke

    (ECONorthwest)

  • Carolyn J. Heinrich

    (University of Wisconsin-Madison)

  • Peter R. Mueser

    (University of Missouri-Columbia and IZA)

  • Kenneth R. Troske

    (University of Kentucky and IZA)

  • Kyung-Seong Jeon

    (University of Missouri-Columbia)

Studies examining welfare-to-work program effectiveness present mixed and sometimes discrepant findings, partly due to research design, data, and methodological limitations. Using administrative data on Missouri and North Carolina welfare recipients, we substantially improve on past estimation approaches to identify the distinct effects of each state's welfare-to-work subprograms—assessment, job search assistance and job readiness training, and more intensive programs designed to augment human capital. More intensive training is associated with greater initial earnings losses but also greater long-run earnings gains. The negative program impacts we observe in quarters immediately following participation turn positive by the second year after participation.

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Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 24 (2006)
Issue (Month): 3 (July)
Pages: 567-608

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Handle: RePEc:ucp:jlabec:v:24:y:2006:i:3:p:567-608
Contact details of provider: Web page: http://www.journals.uchicago.edu/JOLE/

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  1. Lechner, Michael, 1999. "Identification and Estimation of Causal Effects of Multiple Treatments Under the Conditional Independence Assumption," IZA Discussion Papers 91, Institute for the Study of Labor (IZA).
  2. Pascal Courty & Gerald Marschke, 2004. "An Empirical Investigation of Gaming Responses to Explicit Performance Incentives," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 23-56, January.
  3. Carolyn J. Heinrich & Peter R. Mueser & Kenneth R. Troske, 2005. "Welfare to Temporary Work: Implications for Labor Market Outcomes," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 154-173, February.
  4. Dyke, Andrew & Heinrich, Carolyn J. & Mueser, Peter R. & Troske, Kenneth, 2005. "The Effects of Welfare-to-Work Program Activities on Labor Market Outcomes," IZA Discussion Papers 1520, Institute for the Study of Labor (IZA).
  5. Peter R. Mueser & Kenneth R. Troske & Alexey Gorislavsky, 2006. "Using State Administrative Data to Measure Program Performance," Working Papers 0702, Department of Economics, University of Missouri.
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  8. David H. Autor & Susan N. Houseman, 2010. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from "Work First"," American Economic Journal: Applied Economics, American Economic Association, vol. 2(3), pages 96-128, July.
  9. repec:mpr:mprres:2955 is not listed on IDEAS
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  12. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
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