Is subsidized employment cost effective for welfare recipients? Experimental evidence from seven state demonstrations

S. H. Bell, L. L. Orr

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the benefits and costs of training and subsidized employment provided to welfare recipients in demonstration programs in seven US states. A classical experimental design is used to estimate the effect of these demonstrations on earnings and welfare benefits over 33 months following program entry. Both effects are substantial and, in some cases, long-lived. When combined with data on program costs, these findings indicate that, while not always cost effective for taxpayers, subsidized employment for welfare recipients does convey positive net benefits to participants and to society as a whole. -Authors

Original languageEnglish (US)
Pages (from-to)42-61
Number of pages20
JournalJournal of Human Resources
Volume29
Issue number1
DOIs
StatePublished - Jan 1 1994

ASJC Scopus subject areas

  • Economics and Econometrics
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Management of Technology and Innovation

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