Moving People from Welfare to Work. Lessons from the National Evaluation of Welfare-to-Work Strategies.. 4. Effects on Economic Outcomes


This section examines the impacts on economic outcomes of the different types of welfare-to-work strategies used by the NEWWS programs. Specifically, it looks at the extent to which the programs improved on what would have happened in their absence; the relative effectiveness of employment-focused and education-focused programs and their variants; and the relative effectiveness of LFA and HCD programs.

As noted earlier, one of the key goals of education-focused programs is to increase income by improving welfare recipients' credentials or skills before they seek jobs. Short-run impacts are not expected in these programs because the programs essentially delay people's entry into the job market; rather, long-run impacts are the goal, with the hope that higher long-run earnings will make up for earnings foregone in the short run. One of the key goals of employment-focused programs, in contrast, is to reduce reliance on welfare as soon as possible. Short-run impacts are expected in these programs, with the hope that they will be sustained and even grow over time.