Overview of the Final Report of the Seattle-Denver Income Maintenance Experiment. Counseling/Training


With respect to the counseling/training subsidy results, two major points deserve emphasis.  Participation in both the counseling and training-education programs was strongly related to the amount of the subsidy.  Both the 50 percent and 100 percent subsidy plans induced statistically significant increases in formal schooling (although not work-related training).  These increases provide a plausible explanation of the negative results — namely the hours worked and earnings both during and (to a lesser extent) after program participation tended to be reduced.  While in formal schooling, it is reasonable to expect employment to be reduced, and the employment records of participants to become less regular.  The formal schooling was not, however, typically job-related.  Therefore, the potentially deleterious effect of the reduced work history was not compensated for by any job-related skills acquired during the subsidy program.