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  • 0.13,1.25
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  • -0.08,1.00

Summary

The Los Angeles County Transitional Subsidized Employment Program—On-the-Job Training (OJT) provided partially subsidized work opportunities to move Temporary Assistance for Needy Families (TANF) recipients into unsubsidized permanent employment.

At the time this evaluation occurred, two Transitional Subsidized Employment programs were active in Los Angeles County: OJT and a paid work experience (PWE) program. OJT placed participants in a partially subsidized, six-month position at a for-profit, private-sector organization, where they were paid $8 an hour by the local Workforce Investment Board for the first two months. The program aimed to have participants make the transition into unsubsidized positions with the same employer when the subsidy ended. The average placement lasted two and a half 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 OJT or PWE; (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). OJT was offered in Los Angeles County, CA.

This evaluation of OJT also analyzes the PWE model and a comparison of OJT versus PWE.

24968.02-Study of Los Angeles
Populations and employment barriers: Parents, Single parents, Public Benefits Recipients, Cash assistance recipients, Unemployed

Implementation at a glance

Primary service
On-the-job training
Program services
Case management, Job placement, On-the-job training, Subsidized employment/transitional jobs
Review services terms
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 $1,349 per year 0.037 1748
Long-term Little evidence to assess support favorable $656 per year 0.018 1748
Very long-term Little evidence to assess support favorable $984 per year 0.027 1748
Increase employment Short-term Supported favorable 5% (in percentage points) 0.119 1748
Long-term Little evidence to assess support favorable 1% (in percentage points) 0.023 1748
Very long-term Cannot assess support
Decrease benefit receipt Short-term Supported favorable $-151 per year -0.044 1748
Long-term Little evidence to assess support favorable $-52 per year -0.015 1748
Very long-term Cannot assess support
Increase education and training All measurement periods Little evidence to assess support unfavorable -2% (in percentage points) -0.032 1392

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
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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 $8,607
Interpret cost findings with caution

Cost information

How much did the program cost per participant?

The average total program cost per participant was $8,607 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.

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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 OJT to Worksource Centers. Case managers and job developers attempted to place participants in jobs with for-profit employers. OJT placements could last up to six months. Participants were on the Workforce Investment Board’s payroll, earning minimum wage for the first two months of their placements. For the remainder of their placement, they were on the employer’s payroll, and the employer received a subsidy of up to $550 per month. In addition to participation in OJT, 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.

Implementation of the model varied by Worksource Center. For example, staff at some Worksource Centers had trouble identifying employers for the OJT program, resulting in a smaller-than-anticipated pool of potential employers. In addition, post-placement interaction between Worksource Center staff and participants varied. Although some staff maintained regular communication with participants after placement, more often, Worksource Center staff and participants interacted little after participants were placed in subsidized jobs.

Service intensity

Participants were offered two months of fully subsidized employment, followed by four months of partially 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 OJT, roughly 70 percent participated in such activities.

Partnerships

A variety of private-sector employers provided the subsidized jobs for participants. The five OJT employers with the most placements were a commercial photography studio, a wholesale food services company, a printing and copy shop, a fast-food restaurant, and a medical-product sales company.

Staffing

The primary staff operating the OJT 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. Worksource Center staff were responsible for job development, including recruiting employers to participate in the program. South Bay Workforce Investment Board staff oversaw Worksource Centers and processed subsidy payments. DPSS management 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.

The information contained here reflects how the program was implemented at the time of the evaluation.

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%

The race and ethnicity categories may sum to more than 100 percent if the authors reported race and ethnicity separately; in these cases, we report the category White, rather than White, not Hispanic.

State(s) where implemented

AL AK AZ AR CA CO CT DE DC FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY Canada

Pathways to Work refers to programs by the names used in study reports or manuscripts. Some program names may use language that is not consistent with our style guide, preferences, or the terminology we use to describe populations.