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Supported Work Leads to Lasting Labor Market Success Among TANF Recipients

Author

Listed:
  • Barham, Tania

    (University of Colorado, Boulder)

  • Cadena, Brian C.

    (University of Colorado, Boulder)

  • Schechter, Lauren

    (University of Notre Dame)

Abstract

This paper studies the effects of a supported work program that provides TANF recipients with a suite of services including a six-month subsidized internship with a local employer. We use rich administrative data and implement a stacked difference-in-differences design comparing program participants to observably similar TANF recipients to estimate effects on employment, earnings, and benefit receipt. Program enrollment led to an immediate increase in formal-sector employment and earnings, with limited post-program fadeout. The program increased employment by 10 percentage points (20 percent) and earnings by \$861 per quarter (48 percent) in the three years following program exit. Program participation also increased participants' total benefit receipt during the program, with modest decreases after program exit. The program is relatively cost-effective compared to other adult subsidized employment programs due to longer-than-average persistence of the employment and earnings gains.

Suggested Citation

  • Barham, Tania & Cadena, Brian C. & Schechter, Lauren, 2025. "Supported Work Leads to Lasting Labor Market Success Among TANF Recipients," IZA Discussion Papers 18342, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp18342
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    Keywords

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate

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