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The Effects of Supported Work on the Earnings and Transfer Payments of Its AFDC Target Group


  • Stanley Masters


The effects of Supported Work on a sample of 1620 long-term AFDC recipients are analyzed in this paper. We find positive, statistically significant effects on the postprogram earnings of experimentals. Although the experimental effect declines sharply over time at one of the seven sites, at the others the effect increases somewhat faster than the rate of inflation. The postprogram effects are concentrated disproportionately in public-sector employment, but not in CETA/WIN positions. The increased earnings of experimentals leads to significant payment reductions in welfare. In the long run, we estimate that the experimental effect on earnings will be $53 per month for earnings and $22 per month for disposable income.

Suggested Citation

  • Stanley Masters, 1981. "The Effects of Supported Work on the Earnings and Transfer Payments of Its AFDC Target Group," Journal of Human Resources, University of Wisconsin Press, vol. 16(4), pages 600-636.
  • Handle: RePEc:uwp:jhriss:v:16:y:1981:i:4:p:600-636

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    References listed on IDEAS

    1. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    2. Clotfelter, Charles T. & Ehrenberg, Ronald G. & Getz, Malcolm & Siegfried, John J., 1992. "Economic Challenges in Higher Education," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110509.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. David W. Breneman & Dean T. Jamison & Roy Radner, 1976. "The Ph.D. Production Process," NBER Chapters,in: Education as an Industry, pages 1-52 National Bureau of Economic Research, Inc.
    5. Charles T. Clotfelter & Ronald G. Ehrenberg & Malcolm Getz & John J. Siegfried, 1991. "Introduction to "Economic Challenges in Higher Education"," NBER Chapters,in: Economic Challenges in Higher Education, pages 1-16 National Bureau of Economic Research, Inc.
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