Study Details | Pathways to Work

26587-Study of Minnesota S

Study quality: High

High

Reason for the rating: This study received a high study quality rating because it is a randomized controlled trial with low attrition, suggesting that findings can be attributed to the program.

Program: Minnesota Subsidized and Transitional Employment Demonstration (MSTED)

Characteristics of study participants:

Cash assistance recipients, Parents, Public Benefits Recipients

Services provided:

Job placement, Job readiness, Subsidized employment/transitional jobs

Setting: Tested in multiple settings

Methods and Standards Protocol version used for impact review: Version 2.0

Learn about our protocol

Cost: This study includes cost information reviewed by Pathways to Work (under the cost standards in Methods and Standards Protocol Version 2.0).

Study design

Design:

Randomized controlled trial

Study group formation:

The Minnesota Family Investment Program (MFIP)—which was the state's Temporary Assistance for Needy Families (TANF) program—referred 1,250 participants in Ramsey, Dakota, and Hennepin Counties to Minnesota Subsidized and Transitional Employment Demonstration (MSTED) providers. MSTED staff provided each referred individual with information on the program and on the study. MSTED providers enrolled a total of 799 individuals who agreed to participate. MSTED providers then randomly assigned each individual into either the MSTED program group or to a comparison group offered MFIP usual services. A total of 799 individuals were randomized, with 403 individuals assigned to the program group and 396 indiviudals assigned to the comparison group.

Time period of study:

The study ran from November 2014 to July 2022. Study enrollment ran from November 2014 to June 2016. Data collection occurred from November 2014 to July 2022, with outcomes measured using administrative data over an six-year follow-up period and using survey data at a 12-month follow-up.

Primary outcome domains examined:

Increase short-term earnings, Increase long-term earnings, Increase very long-term earnings, Increase short-term employment, Increase long-term employment, Decrease short-term benefit receipt

Other outcome domains examined:

Economic well-being, personal well-being

Study funded by:

This study was funded by the U.S. Department of Health and Human Services, Administration for Children and Families (Contract Number HHSP233-2010-0029YC).

Results

View table definitions

Scroll to the right to view the rest of the table columns

Outcome domain	Measure	Timing	Study quality by finding	Comparison group mean	Program group mean	Impact	Units	Sample size
Increase short-term earnings	Annual earnings, NDNH data	Year 1	High	6,572.00	7,131.00	559.00	2016 dollars	798
Increase long-term earnings	Annual earnings, NDNH data	Year 5	High			417.00	2020 dollars	798
Increase very long-term earnings	Annual earnings, NDNH data	Year 6	High			377.00	2021 dollars	798
Increase short-term employment	Ever employed, quarterly, NDNH data	Quarter 4	High	62.40	68.60	6.20	percentage points	798
Increase short-term employment	Number of quarters employed, annual, NDNH data	Year 1	High	2.30	2.60	0.30	quarters	798
Increase long-term employment	Ever employed, annual, NDNH data	Year 2	High	81.70	83.70	2.00	percentage points	798
Increase long-term employment	Number of quarters employed, annual, NDNH data	Year 2	High	2.60	2.70	0.10	quarters	798
Decrease short-term benefit receipt	Amount of AFDC/TANF benefits, annual, state administrative data	Year 1	High	3,517.00	3,365.00	-152.00	2016 dollars	799
Decrease short-term benefit receipt	Amount of food stamps/SNAP benefits, annual, state administrative data	Year 1	High	4,679.00	4,600.00	-79.00	2016 dollars	799
Decrease short-term benefit receipt	Received AFDC/TANF, annual, state administrative data	Year 1	High	96.30	96.50	0.20	percentage points	799
Decrease short-term benefit receipt	Received food stamps/SNAP, annual, state administrative data	Year 1	High	100.00	99.80	-0.20	percentage points	799

Short-term outcomes are those measured 18 months or fewer after participants are first offered services. Long-term outcomes are those measured between 18 months and 5 years after participants are first offered services. Very long-term outcomes are those measured 5 years or more after participants are first offered services.

Means are not displayed when not reported or not aligned with the impact estimates. For example, if the impact estimate is regression-adjusted but only unadjusted means are reported in the study, the unadjusted means are not displayed as they are not aligned with the adjusted impact estimate.

Impact estimates are not shown when the estimate units cannot be converted to natural units.

Findings quality key:

High
Moderate

Study quality terms?

The findings quality describe our confidence that a given study’s finding is because of the program. We do not display findings that rate low.

Findings key:

A moderate-to-large favorable finding that is unlikely to be due to chance
A moderate-to-large favorable finding that might to be due to chance
A small favorable finding that is unlikely to be due to chance
A small favorable finding that might be due to chance
A favorable finding that is unlikely to be due to chance, but we cannot determine the standardized effect size
A favorable finding that might be due to chance, but we cannot determine the standardized effect size
A moderate-to-large unfavorable finding that is unlikely to be due to chance
A moderate-to-large unfavorable finding that might to be due to chance
A small unfavorable finding that is unlikely to be due to chance
A small unfavorable finding that might be due to chance
An unfavorable finding that is unlikely to be due to chance, but we cannot determine the standardized effect size
An unfavorable finding that might be due to chance, but we cannot determine the standardized effect size
A finding that is unlikely to be due to chance, but we cannot determine the standardized effect size or direction
A finding of no effect that might be due to chance

Favorable findings are impacts in a direction that is socially desirable. Statistical significance indicates the likelihood that a study finding is due to the program, rather than due to chance. Findings are described as moderate-to-large if the program produced a sufficiently large change in the outcome. An impact receives this designation if the standardized effect size is equal to or greater than 0.25 or equal to or less than -0.25.

Sample characteristics

Study participants were TANF recipients in one of the three participating counties in Minnesota. Most participants were female (81 percent). The majority of participants had a high school diploma or GED (73 percent), were Black (65 percent), and had some postsecondary education (56 percent). About one-third (35 percent) were formerly incarcerated.

Characteristics may sum to greater than 100 percent due to rounding.

Age

Mean age	31 years
Young adults (age 16-24)	31%
Adults (age 25+)	70%

Sex

Female	81%
Male	19%

Race and ethnicity

Black or African American	65%
White, not Hispanic	16%
Hispanic or Latino of any race	7%
More than one race	8%
Unknown, not reported, or other	5%

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.

Family status

Married	11%
Parents	85%

Employment and public benefit status

Public benefits recipients	100%
Had low incomes	100%
Cash assistance recipients	100%

Education

Had some postsecondary education	56%
Had a high school diploma or GED	73%
Did not have a high school diploma or GED	27%
English learners	10%

Specific employment barriers

Had a disability	8%
Were involved with the justice system	35%
Were fomerly incarcerated	35%
Were experiencing homelessness	4%

Program implementation

Implementing organization:

HIRED; Avivo; Goodwill-Easter Seals (non-profit organizations)

Program history:

Minnesota had funded subsidized employment programs since 2007, but the Minnesota Subsidized and Transitional Employment Demonstration (MSTED) program was a new demonstration program for this study.

Program services:

MSTED gave participants in Minnesota's TANF program (the Minnesota Family Investment Program [MFIP]) access to subsidized employment and additional services. MSTED services included working with a job developer to assess job readiness; workshops and one-on-one training to support job readiness as needed; and assistance finding subsidized employment. The MSTED model included two subsidized employment options: (1) paid work experience at a public agency or nonprofit organization, during which participants improved their workplace skills and earned fully subsidized wages of $9 per hour for up to 24 hours per week for eight weeks; or (2) a subsidized job with a private employer during which individuals could earn subsidized wages of up to $15 per hour for up to 40 hours per week. Wages were fully subsidized for the first eight weeks, and the subsidy was reduced to 50 percent for an additional 8 weeks. The option of a subsidized job with a private employer was intended for participants deemed more job-ready by MSTED staff. All members of the program group also had access to standard MFIP employment services.

Mandatory services:

None

Comparison services:

Comparison group participants had access to standard MFIP employment services, which included structured job-readiness classes, independent job search, uncompensated work experience, community service, English as a second language training, and education services (postsecondary education or training, adult basic education, and high school completion or GED classes).

Service receipt duration:

MSTED participants in paid work experience received fully subsidized wages for up to 8 weeks. Subsidized jobs participants received fully subsidized wages for 8 weeks, and then the subsidy was reduced to 50 percent for an additional 8 weeks.

Program funding:

The Minnesota Department of Human Services funded the program with state funds.

Study publications

Cummings, Danielle (2023). Effects of the subsidized and transitional employment demonstration on earnings after eight years, OPRE Report 2023-204, Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services. Available at https://acf.gov/opre/report/effects-subsidized-and-transitional-employment-demonstration-earnings-after-eight-years

Cummings, Danielle, and Dan Bloom (2020). Can subsidized employment programs help disadvantaged job seekers? A synthesis of findings from evaluations of 13 programs. OPRE Report 2020-23. Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services. Available at https://acf.gov/sites/default/files/documents/opre/sted_final_synthesis_report_feb_2020.pdf

Farrell, Mary, and Riley Webster (2019). Implementation and early impacts of the Minnesota Subsidized and Transitional Employment Demonstration, OPRE Report #2019-68, Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services. Available at https://www.acf.hhs.gov/sites/default/files/documents/opre/sted_mn_2019_508.pdf

Webster, Riley (2019). The Subsidized and Transitional Employment Demonstration: Cost analysis of the Minnesota Subsidized and Transitional Employment Demonstration. New York: MDRC. Available at https://www.mdrc.org/sites/default/files/msted_cost_analysis_nov_2019.pdf

View the glossary for more information about these and other terms used on this page.

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.

Study of Minnesota Subsidized and Transitional Employment Demonstration (MSTED)