The Pathways to Work Evidence Clearinghouse defines subsidized employment as employment that is partially or fully paid for by an external funder (not the employer), and transitional jobs as jobs meant to integrate those who have been out of the workforce (for example, people who were formerly incarcerated) back into the workforce. Transitional jobs can be paid or unpaid. This Evidence Snapshot describes the effectiveness of programs that were identified by the Pathways Clearinghouse as using subsidized employment or transitional jobs. It summarizes what we know about these programs and their impacts so TANF administrators, policymakers, researchers, and the general public can apply the evidence to questions and contexts that matter to them.

Key Findings and Highlights

On average, subsidized employment and transitional jobs interventions improved several outcomes. In particular, for intervention participants -- as compared with comparison groups that did not receive intervention services --

  • Short-term annual earnings increased by $1,123 and long-term annual earnings increased by $600, on average, across the 16 subsidized employment and transitional jobs interventions for which these outcomes were measured.
  • Short-term employment increased by 6 percentage points and long-term employment increased by 3 percentage points, on average, across the 17 subsidized employment and transitional jobs interventions for which these outcomes were measured.
  • The proportion of individuals receiving public benefits did not change in the short term and decreased by 2 percentage points in the long term, on average, across the 13 subsidized employment and transitional jobs interventions for which these outcomes were measured. The amount of public benefits received decreased by $299 in the short term and decreased by $237 in the long term, on average, across the four interventions for which public benefit amount was measured.
  • Education and training attainment increased by four percentage points, on average, across the nine subsidized employment and transitional jobs interventions for which these outcomes were measured.
  • Ten subsidized or transitional employment interventions had positive impacts on two or more outcomes examined by the Pathways Clearinghouse.

Citation

Elkin, Sam, Jillian Stein, and Dana Rotz (2022). Evidence Snapshot: Subsidized employment and transitional jobs, OPRE Report #2022-83, Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.

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Evidence snapshot | June 2022

Subsidized Employment and Transitional Jobs (857.15 KB)

Interventions with Subsidized employment and Transitional jobs as the primary service

The table presents up-to-date information from Pathways Clearinghouse reviews, which may be more current than the information in the Evidence Snapshot.

Intervention Increase earnings Increase employment Decrease benefit receipt Increase education and training Populations and employment barriers Services Provided
Center for Employment Opportunities (CEO) Prisoner Reentry Program Insufficient evidence to assess support for increasing earnings Insufficient evidence to assess support for increasing employment No evidence to assess support for decreasing benefit receipt No evidence to assess support for increasing education and training Former incarceration Job development/job placement, Employment coaching, Work readiness activities, Transitional jobs, Work and work-based learning, Supportive services, Soft skills training, Case management
Florida Back to Work No evidence to assess support for increasing earnings No evidence to assess support for increasing employment No evidence to assess support for decreasing benefit receipt No evidence to assess support for increasing education and training Subsidized employment, Work and work-based learning
Good Transitions Supported for increasing earnings Supported for increasing employment Insufficient evidence to assess support for decreasing benefit receipt Supported for increasing education and training Parents, Noncustodial parents Occupational or sectoral training, Job development/job placement, Training, Employment coaching, Soft skills training, Work readiness activities, Case management, Subsidized employment, Work and work-based learning
Los Angeles County Transitional Subsidized Employment Program—On-the-Job Training (OJT) Supported for increasing earnings Supported for increasing employment Supported for decreasing benefit receipt Not supported for increasing education and training Parents, Cash assistance recipients Subsidized employment, On-the-job training, Work and work-based learning, Training
Los Angeles County Transitional Subsidized Employment Program—On-the-Job Training (OJT) (as compared with Paid Work Experience (PWE)) Insufficient evidence to assess support for increasing earnings Insufficient evidence to assess support for increasing employment Not supported for decreasing benefit receipt Insufficient evidence to assess support for increasing education and training Parents, Cash assistance recipients Training, Subsidized employment, On-the-job training, Work and work-based learning
Los Angeles County Transitional Subsidized Employment Program—Paid Work Experience (PWE) Supported for increasing earnings Supported for increasing employment Supported for decreasing benefit receipt Insufficient evidence to assess support for increasing education and training Cash assistance recipients, Parents Subsidized employment, Work and work-based learning, Job search assistance, Work readiness activities
Los Angeles Regional Initiative for Social Enterprise (LA:RISE) Pilot Program Insufficient evidence to assess support for increasing earnings Insufficient evidence to assess support for increasing employment No evidence to assess support for decreasing benefit receipt No evidence to assess support for increasing education and training Job search assistance, Work readiness activities, Transitional jobs, Subsidized employment, On-the-job training, Work and work-based learning, Occupational or sectoral training, Training, Supportive services, Soft skills training, Financial incentives, Education, Case management, Job development/job placement
Minnesota Subsidized and Transitional Employment Demonstration (MSTED) Insufficient evidence to assess support for increasing earnings Supported for increasing employment Insufficient evidence to assess support for decreasing benefit receipt No evidence to assess support for increasing education and training Work experience, Subsidized employment, Training, Job development/job placement, Job search assistance, Work readiness activities
Next STEP (Subsidized Transitional Employment Program) Insufficient evidence to assess support for increasing earnings Supported for increasing employment Insufficient evidence to assess support for decreasing benefit receipt Supported for increasing education and training Former incarceration Health services, Financial incentives, Employment retention services, Case management, Job development/job placement, Job search assistance, Work readiness activities, Transitional jobs, Subsidized employment, Work and work-based learning, Occupational or sectoral training, Training, Substance use disorder treatment and mental health services
Parent Success Initiative (PSI) Supported for increasing earnings Supported for increasing employment Supported for decreasing benefit receipt No evidence to assess support for increasing education and training Parents, Noncustodial parents, Unemployed Employment retention services, Education, Case management, Job development/job placement, Job search assistance, Work readiness activities, Transitional jobs, Subsidized employment, Work and work-based learning, Occupational or sectoral training, Training, Supportive services, Financial incentives, Soft skills training, Financial education