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Policies aimed at encouraging and helping welfare recipients prepare for and find jobs began in 1962, when amendments to the Social Security Act allowed states to require recipients to work in exchange for their Aid to Families with Dependent Children (AFDC) grants. Here, we briefly review the evolution, characteristics, and costs of eight previously evaluated welfare-based programs and two demonstration programs that provided interventions similar to those of WtW programs before the passage of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996. Table B.1 provides specific cost information for each of the programs and sites in this review. All costs in the table and in the rest of the chapter are presented in year 2000 dollars.
In 1967, Congress adopted the Work Incentives (WIN) program, "the first truly national effort to promote the self-support of welfare recipients (Pacific Consultants 1976, p. 12).(1) WIN was a joint program of the U.S. Department of Labor (DOL) and of the Department of Health, Education and Welfare that required welfare offices to refer certain AFDC recipients for employment and training, including women without children under age 6.
In the first-generation WIN program, DOL-funded state employment services offices provided employment, subsidized on-the-job training (OJT), vocational training, and monthly participation stipends to employable (and, in the case of females, mostly voluntary) AFDC recipients referred to them by welfare agencies. Including supportive services (but not child care), costs ranged from $2,868 to $4,106 in four specific sites. The average OJT subsidy was $2,400, and the mean cost for vocational training programs was nearly $12,000 (Levitan 1972, p. 102).
In 1971, WIN was substantially altered because of Congress's dissatisfaction with program results and continued concerns about growing AFDC caseloads. WIN II mandated registration among all recipients over age 16 for employment services, fewer preemployment support services, and quicker job placement. Average program costs dropped to $2,014 for male participants, although costs were higher for men in OJT ($2,399), training ($6,374) or public jobs ($16,976) and around $1,000 higher for women because of child care costs. In general, WIN II participants had fewer, shorter welfare spells than nonparticipants and were more likely to be male and high school graduates (Pacific Consultants 1976).
WIN programs were reformed yet again in 1981, through the Omnibus Budget Reconciliation Act (OBRA). Under OBRA, states could limit programs to job search and/or unpaid work experience, or they could incorporate a more "balanced" approach that also included supportive services, counseling, and training for participants. WIN job search and unpaid work experience programs were substantially less costly than earlier programs, ranging from $221 to $902 in seven evaluated sites (Maxfield 1990). Programs were short, focused on the most employable participants, and provided fewer supportive services and little or no access to education and training activities (Pacific Consultants 1976). Balanced programs, which offered more services, including education, job training, and child care, were more costly. Program costs in four sites ranged from $1,350 to $3,171, still lower than costs for the first-generation WIN programs (O'Neill 1990; and Maxfield 1990).
The National Supported Work Demonstration was conducted during the WIN era, from 1975 to 1979, in 13 sites. The program provided a highly structured paid work experience component, along with job search training, placement assistance, and support services, to long-term AFDC recipients and other disadvantaged groups. The program led to statistically significant improvements in employment and income for AFDC recipients while they were in the program and during the postprogram period. Costs of the program were high: $11,572 in year 2000 dollars (Hollister et al. 1984). The requirement that the program operate businesses that provided appropriate work experience positions was a primary cause of the high costs.
In 1988, the Family Support Act replaced WIN with the Job Opportunities and Basic Skills Training (JOBS) program. Local welfare agencies were fully responsible for administering the program. Participation was mandatory for those without children under age 3, and it not deferred for illness, remoteness from the program, lack of child care, or other reasons. JOBS also required states to target individuals who were long-term AFDC recipients or whose characteristics put them at risk for long or repeat welfare spells. With JOBS, states shifted to an emphasis on longer-term education and training (U.S. General Accounting Office 1999). They also expanded case management to include closer case supervision and employment counseling, sometimes provided by specialized workers.
JOBS programs usually offered two program tracks. One began with job search but gave participants who did not get jobs access to additional assessment, then to education. The second track, for those considered less job-ready, emphasized basic education and job readiness activities, followed by job search (Scrivener et al. 1998; and Hamilton et al. 1997). Costs ranged from $1,930 to $4,098 in three evaluation sites (Scrivener et al. 1998; Storto et al. 2000; and Farrell et al. 2000) and from $3,278 to $6,971 in Greater Avenues to Independence (GAIN) programs operated in six California counties, five of which strongly emphasized the education track (Riccio et al. 1994).(2)
A side-by-side comparison of JOBS programs that emphasized either rapid employment (called the labor force attachment approach) or skill-building activities (called the human capital approach) in three sites showed that costs ranged from $1,302 to $3,203 for labor force attachment programs. The costs of human capital programs in the three sites were higher, ranging from $3,196 to $4,914 (Table B.1).
Costs for JOBS human capital programs were slightly lower than costs for the Minority Female Single Parent (MFSP) Demonstration program, implemented in the mid-1980s. MFSP provided funding to community-based organizations to operate employment and training programs for low-income, minority single mothers, at costs (including child care costs) ranging from $3,774 to $6,796 at four sites (Handwerger et al. 1988).(3) Many program participants were enrolled in vocational training programs.
| Program | Program Components | Cost (in Year 2000 Dollars) | Source of Cost Data (Lead Author: Page Number) |
|---|---|---|---|
WIN I: Education, Training, and Work Experience |
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| WIN Georgia | Education, institutional training, unpaid work experience (WEX), OJT, followup for men and women, supportive services | 2,868 | Levitan: 102 |
| WIN California | Education, institutional training, unpaid WEX, OJT, followup for men and women, supportive services | 3,038 | Levitan: 102 |
| WIN New York | Education, institutional training, unpaid WEX, OJT, followup for men and women, supportive services | 3,522 | Levitan: 102 |
| WIN Wisconsin | Education, institutional training, unpaid WEX, OJT, followup for men and women, supportive services | 4,106 | Levitan: 102 |
WIN II: Placement and Subsidized Work |
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| WIN (National)--Males | Job placement, limited support services, some OJT and public service employment | 2,014 | Pacific Consultants: 164 Table 8.1 |
| WIN (National)--Females | Job placement, limited support services, some OJT and public service employment | 2,926 | Pacific Consultants: 164 Table 8.1 |
WIN: Job search, Work Experience |
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| WIN Cook County, Illinois | Job club, independent job search assistance, unpaid WEX sequence | 221 | Maxfield: 44 Table 4 |
| WIN Arkansas | Job club, independent job search assistance, unpaid WEX sequence | 223 | Maxfield: 44 Table 4 |
| WIN West Virginia | Unlimited length workfare (unpaid WEX) targeted toward men in two-parent AFDC families | 240 | Maxfield: 44 Table 4 |
| WIN Louisville | Job search assistance | 530 | Maxfield: 44 Table 4 |
| WIN Virginia | Job Club, independent job search assistance, unpaid WEX sequence, job training, OJT, and basic education | 606 | Maxfield: 44 Table 4 |
| WIN San Diego | Job club | 793 | Maxfield: 44 Table 4 |
| WIN San Diego | Job club and WEX | 902 | Maxfield: 44 Table 4 |
WIN Balanced |
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| Baltimore Options | Job search, education, training, OJT and unpaid WEX options | 1,350 | Maxfield: 44 Table 4 |
| SWIM San Diego | Job search, unpaid WEX, education, training sequence | 2,177 | Maxfield: 44 Table 4 |
| ET Choices (Massachusetts) | (Mean cost 1984-1989) | 2,223 | O'Neil; 88 Table 6.1 |
| Training Opportunities in the Private Sector, Maine | Work-readiness training, WEX, emphasized OJT | 3,171 | Maxfield: 44 Table 4 |
JOBS Two-Track |
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| JOBS Oklahoma | Basic education, vocational training, college, job search | 1,930 | Storto: 41 Table 3.2 |
| JOBS Portland | Job search, life skills training, basic education, vocational training, college, WEX | 1,980 | Scrivener: 72 Table 4.2 |
| JOBS Detroit | Education (basic and postsecondary), training, self-directed job search, OJT or WEX for a few | 4,098 | Farrell |
| GAIN Two-Track | |||
| GAIN Riverside | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $3,278 | Riccio: 76 Table 3.2 |
| GAIN San Diego | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $3,390 | Riccio: 76 Table 3.2 |
| GAIN Tulare | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $4,038 | Riccio: 76 Table 3.2 |
| GAIN Butte | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $4,290 | Riccio: 76 Table 3.2 |
| GAIN Los Angeles | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $6,550 | Riccio: 76 Table 3.2 |
| GAIN Alameda | Two-track job search assistance or basic education, vocational training, OJT or unpaid WEX if no job found | $6,971 | Riccio: 76 Table 3.2 |
JOBS Labor Force Attachment |
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| JOBS Riverside | Job club or supervised job search followed by basic education or WEX if no job obtained | $1,302 | Hamilton: 170 Table 7.2 |
| JOBS Atlanta | Job club or supervised job search followed by basic education or WEX if no job obtained | $1,888 | Hamilton: 170 Table 7.2 |
| JOBS Grand Rapids | Job club or supervised job search followed by basic education or WEX if no job obtained | $3,203 | Hamilton: 170 Table 7.2 |
JOBS Human Capital |
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| JOBS Riverside | Basic education, vocational training or college, followed by job club or supervised job search if no job obtained | $3,196 | Hamilton: 191 Table 8.2 |
| JOBS Atlanta | Basic education, vocational training or college, followed by job club or supervised job search if no job obtained | $3,692 | Hamilton: 191 Table 8.2 |
| JOBS Grand Rapids | Basic education, vocational training or college, followed by job club or supervised job search if no job obtained | $4,914 | Hamilton: 191 Table 8.2 |
MFSP |
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| MFSP D.C. | Basic education and vocational training for low-income, minority, single-female parents | $3,774 | Handwerger: 25, Table 3.3 |
| MFSP San Jose | Basic education and vocational training for low-income, minority, single-female parents | $5,034 | Handwerger: 25, Table 3.3 |
| MFSP Atlanta | Basic education and vocational training for low-income, minority, single-female parents | $5,376 | Handwerger: 25, Table 3.3 |
| MFSP Providence | Basic education and vocational training for low-income, minority, single-female parents | $6,796 | Handwerger: 25, Table 3.3 |
Supported Work |
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| National Supported Work Demonstration (13 sites) | Paid work experience with close supervision at program-operated ventures for long-term AFDC recipients and other disadvantaged groups | 11,572 | Hollister et al. |
1. Most local community work experience programs before WIN focused on fathers, who in 1961 had become AFDC-eligible under some circumstances and, unlike mothers, were not presumed to be out of the labor market. The program provided little training--instead, participants usually worked off their AFDC benefits in public jobs (O'Neill 1990).
2. GAIN was California's JOBS program.
3. Overall, in the MSFP programs, child care and other support services used more resources than the education and training component. We have excluded child care costs from the cost estimates for all JOBS programs discussed here, and from costs for WIN I programs. This is because WtW programs incurred negligible child care costs, and child costs for remaining WIN-era programs were also quite low, given both low take-up rates and low child care expenses among those who did use paid child care.
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