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