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.
Using an alternative to classical statistics, this paper reanalyzes results from three published studies of interventions to increase employment and reduce welfare dependency. The analysis formally incorporates prior beliefs about the interventions, characterizing the results in terms of the distribution of possible effects, and generally confirms the earlier published findings.
Will the Past Be Prologue?
In remarks given at a conference sponsored by the U.S. Department of Labor’s Employment and Training Administration, MDRC President Gordon Berlin looks at the extraordinary challenges the current labor market presents to employment policy generally and WIA reauthorization specifically, outlines what we have (and haven’t) learned from research, and makes recommendations for future directions.