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Summary

The Los Angeles County Transitional Subsidized Employment Program—Paid Work Experience (PWE) provided fully subsidized work opportunities and support with job searches to increase Temporary Assistance for Needy Families (TANF) recipients’ employability.

At the time this evaluation occurred, two subsidized employment programs were active in Los Angeles County: PWE and an on-the-job training (OJT) program. PWE placed each participant in a fully subsidized, six-month position at a public-sector or nonprofit organization, where they were paid minimum wage by the local Workforce Investment Board. Case management was provided to assist participants in searching for unsubsidized employment, and in the final month of subsidized employment, participants also received 16 hours of paid time to engage in a job search. The average placement lasted six months.

TANF recipients who were not exempt from TANF work requirements were referred to Greater Avenues for Independence (GAIN), the county’s welfare-to-work program. Work requirement exemptions could be due to having very young children, having a disability, or caring for an ill or disabled person. Participants who were not able to find unsubsidized work during their four-week job search under GAIN were recruited for Transitional Subsidized Employment if they met the following additional criteria: (1) able to work the hours required by PWE or OJT; (2) had at least five months of TANF eligibility remaining; (3) did not participate in Transitional Subsidized Employment in the last year; (4) did not have major employment barriers; and (5) had demonstrated to staff that they could and wanted to work (assessed by staff in various ways across locations). PWE was offered in Los Angeles County, CA. The evaluation of PWE also analyzes the OJT model, and a comparison of the PWE and OJT.

Populations and employment barriers: Parents, Single parents, Public Benefits Recipients, Cash assistance recipients, Unemployed

Implementation at a glance

Primary service
Program services
Case management, Job placement, Job search assistance, Stipends, Subsidized employment/transitional jobs
Setting(s)
Tested in multiple settings
Year evaluation began
2012
Implementing organization(s)The Los Angeles County Department of Public Social Services; South Bay Workforce Investment Board; 21 Worksource Centers

Effectiveness rating and effect by outcome domain

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Outcome domain Term Effectiveness rating Effect in 2024 dollars and percentages Effect in standard deviations Sample size
Increase earnings Short-term Supported favorable $3,426 per year 0.094 1745
Long-term Little evidence to assess support favorable $2,224 per year 0.061 1745
Very long-term Little evidence to assess support favorable $1,932 per year 0.053 1745
Increase employment Short-term Supported favorable 4% (in percentage points) 0.086 1745
Long-term Little evidence to assess support favorable 3% (in percentage points) 0.078 1748
Very long-term Cannot assess support
Decrease benefit receipt Short-term Supported favorable $-656 per year -0.191 1745
Long-term Supported favorable $-282 per year -0.082 1745
Very long-term Cannot assess support
Increase education and training All measurement periods Little evidence to assess support unfavorable -1% (in percentage points) -0.026 1398

Effectiveness ratings

  • Well- supported
  • Supported
  • Mixed support
  • Not supported
  • Insufficient evidence
  • Cannot assess support

Studies of this program

Study quality rating Study counts per rating
High High 1

Program cost

No cost information available.

Cost results

Estimate (in 2024 dollars) Quality of cost analysis that produced the estimate
Total program cost, per participant $12,301
Interpret cost findings with caution

Cost information

How much did the program cost per participant?

The average total program cost per participant was $12,301 in 2024 dollars. This figure is based on cost information for this program reported in one cost study reviewed by Pathways to Work (for details, see the FAQ). This study received a rating of Interpret cost findings with caution for the cost analysis.

Cost information is not directly comparable across programs due to differences in the categories of costs reported and program length. Cost information is not an official price tag or guarantee.

Implementation details

Dates covered by study

The study ran from November 2012 to July 2022. Study enrollment ran from November 2012 to November 2013. Data collection occurred from November 2012 to July 2022, with outcomes measured using administrative data over an eight-year follow-up period and using survey data at 12-month and 30-month follow-ups.

Organizations implementing program

The Los Angeles County Department of Public Social Services (DPSS), through its GAIN program, operated the Transitional Subsidized Employment Program. The county contracted with South Bay Workforce Investment Board to oversee the administration and payment of subsidies. South Bay, in turn, oversaw 21 Worksource Centers located across Los Angeles County that provided direct services to program participants.

Populations served

The program served TANF participants who were unable to secure unsubsidized employment after a four-week job club. All participants were unemployed and parents. Most participants were female (86 percent) and single parents (86 percent). The majority of participants were Hispanic or Latino (55 percent).

Description of services implemented

GAIN workers referred study participants randomly assigned to PWE to Worksource Centers. Case managers and job developers attempted to place participants in jobs with nonprofit and public-sector employers. Worksource Center staff had access to a shared list of employers maintained by South Bay. PWE placements could last up to six months. Participants were on the Workforce Investment Board’s payroll, earning minimum wage for the entirety of their placement. In the final month of subsidized employment, participants also received 16 hours of paid time to engage in a job search. In addition to participation in PWE, study participants continued to be eligible for other GAIN services such as job searching and job-readiness preparation, vocational training and education, community service, and typical supportive services available for TANF recipients.

Most Worksource Centers did not have trouble placing PWE participants. Under the PWE model, Worksource Center staff had access to a shared list of employers maintained by South Bay, and they could also initiate new placements with nonprofits and local government agencies. A wide array of employers was available to them, many of which accepted almost any participant the centers referred, sometimes without even requiring the individual to interview.

Service intensity

Participants were offered six months of fully subsidized employment.

Comparison conditions

The study used a randomized controlled design in which eligible participants were randomly assigned to either receive OJT, PWE, or business-as-usual services for GAIN participants. The comparison group receiving business-as-usual services had access to all services other than PWE and OJT, such as job search and job-readiness preparation, vocational training and education, community service, and typical supportive services available for TANF recipients (for example, child care, transportation subsidies, and funds to purchase clothing or tools for their jobs).

Roughly 80 percent of comparison group members participated in a GAIN activity such as job searching and job-readiness preparation, vocational training and education, or community service. Among those randomly assigned to PWE, roughly 62 percent participated in such activities.

Partnerships

A variety of nonprofit and public-sector employers provided the subsidized jobs for participants. PWE employers included a food bank, the County Office of Education, two Worksource Centers, and a nonprofit human services agency.

Staffing

The primary staff operating the PWE program were GAIN service workers and Worksource case managers and job developers. Specialized GAIN staff, known as Transitional Subsidized Employment liaisons, enrolled participants into the study. South Bay Workforce Investment Board staff oversaw Worksource Centers and processed subsidy payments. DPSS oversaw the overall program. The study authors did not include specific information on the number of staff or their training, degrees, or certifications.

Fidelity measures

The study did not discuss any tools to measure fidelity to the program model.

Funding source

This program was funded by a grant from the U.S. Department of Health and Human Services, Administration for Children and Families and The Rockefeller Foundation.

Local context

The program took place in Los Angeles County, the most populous county in the country, with almost 10 million residents. The county has a diverse labor market. Multiple areas have large numbers of low-wage jobs, including the downtown area and other densely populated cities in the county.

Characteristics of research participants
Black or African American
32%
White, not Hispanic
7%
Asian
3%
Unknown, not reported, or other
4%
Hispanic or Latino of any race
55%

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