Supported Work Leads to Lasting Labor Market Success among TANF Recipients

• In Event: Work and stability in the Safety Net

Abstract

This paper studies the effects of offering TANF beneficiaries individualized work supports, including in some cases a six-month subsidized internship with a local employer that has the potential to lead to a permanent position. We use rich administrative data on the universe of Colorado TANF recipients to form an observably similar comparison group and use a stacked difference-in-differences design to estimate effects on enrollees' formal-sector earnings and TANF receipt. Participation increases employment and earnings immediately when services start, and effects persist after services end. Program enrollment increases formal-sector employment by 9 percentage points (19 percent) and earnings by $542 per quarter (32 percent) in the year following program exit, likely through the formation of more stable employer-employee matches. The program also increases participants’ retention of TANF benefits only during service receipt, with no substantial effects on TANF receipt after exit.

Authors

• Lauren Schechter, University of Notre Dame
  Presenting Author

• Tania Barham, University of Colorado - Boulder
  Non-Presenting Co-Author

• Brian Cadena, University of Colorado - Boulder
  Non-Presenting Co-Author