Targeted Help for the Hard-to-Employ:
Outcomes of Two Philadelphia Welfare-to-Work Programs

Final Report

September 2, 2004

Michelle VanNoy and Irma Perez-Johnson

Submitted to:
U.S. Department of Health and Human Services
Office of the Assistant Secretary for Planning and Evaluation

Project Officer: Alana Landey

Submitted by:
Mathematica Policy Research, Inc.
Project Director: Alan Hershey

Contract No.: 100-98-0009
MPR Reference No.: 8550-097

This report is available on the Internet at:
http://aspe.hhs.gov/hsp/wtw-grants-eval98/phila-outcomes04/

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Contents

Acknowledgements

Executive Summary

Chapters

  1. Introduction
    1. Program Background
      1. National WtW Grants Program
      2. Philadelphia's WtW Program
      3. Welfare Reform in Philadelphia
    2. The Philadelphia Outcomes Study
      1. Study Design and Research Questions
      2. Study Sample and Data Sources
  2. Outcomes
    1. Employment
    2. Earnings
    3. TANF Receipt
    4. Summary
  3. Factors Associated with Differences in RSC and TWC Outcomes
    1. Characteristics of RSC and TWC Participants
    2. Economic Conditions
    3. Service Receipt and Program Completion
    4. Summary
  4. Interpretation of Findings and Study Conclusions
    1. What Factors Help Explain RSC-TWC Differences in Outcomes
    2. Summary
    3. Implications for Future Programs and Study Conclusions

References

Appendix A: Appendix Tables and Figures
Appendix B: Methodology

Tables

I.1 Key Findings
I.2 RSC and TWC Program Descriptions
I.3 Main Data Sources
II.1 Consistency of Employment and Average Annual Earnings, Before and After Program Entry
II.2 Employment of Welfare-to-Work Enrollees During the Year After Program Entry
II.3 Circumstances of Departure from the First Job Held After Enrolling in Welfare-to-Work
II.4 Industry of Welfare-to-Work Enrollees Who Worked One Year After Program Entry
II.5 Work Status One Year After Program Entry
II.6 Comparison of the First Job and the Most Recent Job Held During the Year After Enrolling in Welfare-to-Work: Hours of Work and Wage Rates
II.7 Consistency of TANF Receipt, Before and After Program Entry
III.1 Baseline Characteristcs of RSC and TWC Enrollees
III.2 Receipt of Employment Preparation Services During the Year after Enrolling in Welfare-to-work
III.3 Baseline Characteristics of RSC and TWC enrollees, by Program Completion
IV.1 Estimated Difference Between TWC and RSC Outcomes Six Quarters after Program Entry
IV.2 Factors Related to Outcomes Six Quarters After Program Entry, Based on OLS Regression Results
IV.3 Estimated Difference in Outcomes Between TWC Participants and RSC Noncompleters Six Quaters after Program Entry

Figures

II.1 Trends in Outcomes for TANF Caseload in Philadelphia, as of September 1999
II.2 Employment Rates Over Time
II.3 Earnings Over Time
II.4 Rates of TANF Receipt Over Time
II.5 RSC-Combination Of Work and TANF
II.6 TWC-Combination Of Work and TANF
III.1 Cumulative Enrollment into RSC and TWC Study Samples
III.2 Monthly Unemployment for Philadelphia
III.3 Employment Rates Over Time for RSC, TWC-Early, and TWC-Late Enrollees
III.4 Rates of Completion of the RSC and TWC Programs
III.5 Employment Rates Over Time for RSC and TWC "Completers" Versus "Noncompleters"
III.6 Earnings Over Time for RSC and TWC "Completers" Versus "Noncompleters"
III.7 Rates of TANF Receipt Over Time for RSC and TWC "Completers" Versus "Noncompleters"


Acknowledgements

Mathematica Policy Research, Inc. (MPR) conducted the Philadelphia outcomes report as part of the congressionally mandated evaluation of the National Welfare-to-Work (WtW) grants program. The overall study is being conducted by MPR and its subcontractors-the Urban Institute (UI) and Support Services International, Inc. (SSI)-under a contract from the U.S. Department of Health and Human Services (DHHS). It would not have been possible to complete this report without the hard work of many people at MPR and other organizations, and the authors wish to acknowledge their contributions here.

We could not have completed the study without the ongoing support of the dedicated WtW program staff in Philadelphia. Linda Blanchette at the Philadelphia Workforce Development Corporation gave us background on Philadelphia's complex WtW program structure. Richard Greenwald and Lili-An Elkins of the Transitional Work Corporation (TWC) gave us background on the program, supported the study's sample enrollment, and welcomed us on our many visits to observe program operations. We appreciate the assistance of Caryn May in working with TWC management information systems data. We gratefully acknowledge the time and effort of the numerous staff at TWC and the Regional Service Centers (RSCs) who assisted in sample enrollment for the follow-up survey and who shared information with us on their program operations during our visits. We also are grateful to staff at Pennsylvania's Department of Public Welfare, Bureau of Program Evaluation, including Gayle Brignoni, Fred Mast, Scott Sanson, and Dennis Stamm, for their help in providing us with administrative records data.

At DHHS, Alana Landey oversaw the study and provided valuable guidance and feedback. Pam Holcomb from UI led site visits to TWC and the RSCs and provided key information on program operations.

At MPR, Daisy Ewell and Mark Brinkley expertly coordinated the process of securing and processing administrative data from the state of Pennsylvania. Rita Stapulonis, Shawn Marsh, and Jason Markesich oversaw sample enrollment at the RSCs and TWC, as well as the collection of 12-month follow-up survey data. Julie Sykes provided careful analysis of follow-up survey data and program management information systems data. Dan Levy, Rob Olsen, and Thomas Fraker oversaw the initial analyses of these data and the development of survey weights. Taryn Eckstein and Elizabeth McClintock provided invaluable research assistance for the analysis of these data. Anne Gordon, Alan Hershey, and Peter Schochet reviewed drafts of this report and provided many helpful comments in guiding the analysis. Patricia Ciaccio edited the report, and Bryan Gustus and William Garrett produced it.

We thank all these organizations and individuals, as well as any others we may have omitted unintentionally, for their important contributions to this study. The opinions and conclusions expressed herein are solely those of the authors and should not be construed as representing the opinions or policy of MPR or of any agency of the federal government. Any errors or omissions are strictly the responsibility of the authors.

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