Association for Public Policy Analysis & Management

This paper will present new results from a large-scale, random assignment evaluation of two subsidized employment models targeting TANF recipients in Los Angeles County, California.   The study is being conducted as part of the HHS Subsidized and Transitional Employment Demonstration (STED).  The study will present implementation findings and one-year impacts on employment and public assistance outcomes for two distinct models:  Paid Work Experience (PWE), which involves a fully subsidized placement with a nonprofit or public entity, and OJT, which involves partially subsidized placements with private, for-profit employers.   TANF recipients who completed a 4-week job search activity without finding employment, and who were eligible for subsidized employment, were randomly assigned to one of three groups:  1) PWE group,  2) OJT group, or 3) control group, whose members were referred to other welfare-to-work activities but not to subsidized employment.   The test is highly relevant because it will provide information on two commonly used types of subsidized employment in a head-to-head test.  The results are also important because of the size and diversity of Los Angeles County, and the fact that California serves more than one-third of the national TANF caseload.