Testing Transitional Jobs and Pre-Employment Services in Philadelphia
Two welfare-to-work programs for hard-to-employ Temporary Assistance for Needy Families recipients are evaluated: a transitional-jobs model operated by the Transitional Work Corporation (TWC) and Success Through Employment Preparation (STEP), which addresses barriers to employment. TWC participants had significantly higher employment rates and earnings than the control group members, but the difference faded after the first year of follow-up. Moreover, earnings gains and welfare reductions largely offset one another. STEP program participants were not shown to work more, earn more, or receive less welfare than the control group.