How Effective Are Different Welfare-to-Work Approaches? Five-Year Adult and Child Impacts for Eleven Programs. Costs and Benefits

12/01/2001

Earlier chapters described the implementation of the NEWWS programs and the effects on sample members and their families. In sum, NEWWS programs increased participation in employment-related activities and produced some positive effects for program group members, including higher earnings and less reliance on welfare. Overall, the NEWWS programs had little impactВ  positive or negativeВ  on the well-being of the children of program group members. This chapter presents an analysis of the costs of providing the array of services that produced these effects and uses the results of the cost analysis to examine the net financial benefits and costs of the NEWWS programs from two perspectives: program group members and government budgets. The benefit-cost analysis includes key financial effects discussed in earlier chapters, such as effects on earnings, cash assistance payments, and Food Stamp payments, and expands the scope to consider effects such as fringe benefits from employment, taxes, and Medicaid coverage.

This chapter extends the analysis of impacts on use of program services (Chapter 3) and impacts on earnings, welfare and Food Stamps, and combined income (Chapters 4-6). It examines the costs and benefits of 10 of the 11 NEWWS programs, those for which five years of follow-up data were available from administrative records. (Owing to data limitations five-year costs and benefits were not estimated for Oklahoma City.)

The chapter presents details on the analysis of the costs of running the NEWWS programs, discusses the financial benefits of NEWWS, and compares the benefits and costs from the two perspectives mentioned above.