Subsidized employment programs use public funds to create jobs for the unemployed. This two-page memo describes how they can provide short-term income support to individuals with serious barriers to employment or to broader groups during poor economic times — while having positive effects on reducing recidivism, increasing child support payments, or reducing reliance on welfare.
In this essay, originally published in Spotlight on Poverty and Opportunity, Dan Bloom reviews what research says about subsidized jobs programs – and how they can be a strategy both for tough economic times and for the hard-to-employ in better labor markets.
Labor Market Challenges for Low-Income Adults
MDRC hosted a recent colloquium to celebrate our 40th anniversary and the contributions of former Board Chair Robert Solow. This issue focus summarizes a panel presentation, featuring David Autor, Mary Jo Bane, David Card, and Lawrence Katz, on the current economic climate and how MDRC’s research can address today’s problems.
MDRC is learning what programs work best to prevent at-risk youth from getting in trouble, help juvenile offenders turn their lives around, and give reentering prisoners the chance to get a foothold in the labor market and reduce their chances of rearrest.
While we know how to help low-income individuals prepare for and find work, too many end up in low-wage jobs and never advance up the career ladder. This policy memo describes what we’ve learned about advancement strategies — both those that show promise and those that don’t work.
Subsidized employment programs provide jobs to people who cannot find employment in the regular labor market and use public funds to pay all or some of their wages. Part of our “Looking Forward” series, this policy memo describes how these programs may be part of the answer for the long-term unemployed in the aftermath of the Great Recession.