Study Details | Pathways to Work

26587-Minnesota Subsidized

Study quality: High

High

Reason for the rating: This study received a high study quality rating because it is a low-attrition randomized controlled trial with no known issues that suggest the findings cannot be attributed to the intervention.

Intervention: Minnesota Subsidized and Transitional Employment Demonstration (MSTED)

Services provided:

Training, Work and work-based learning (Subsidized employment, Work experience), Work readiness activities (Job development/job placement, Job search assistance)

Setting: Tested in multiple settings

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 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 intervention group (403) or the comparison group (396). Sample enrollment and random assignment took place from November 2014 to June 2016.

Time period of study:

MSTED enrolled participants from November 2014 to June 2016. The study includes two follow-ups that occurred 12 months (the manuscript reviewed here) and 30 months (to be discussed in a future publication) after random assignment, respectively.

Primary outcome domains examined:

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

Other outcome domains examined:

Self-reported economic and personal well-being

Study funded by:

U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research, and Evaluation funded the evaluation under the Subsidized and Transitional Employment Demonstration, 2010–2020.

Results

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Outcome domain	Measure	Timing	Study quality by finding	Comparison group mean	Intervention group mean	Impact	Units	Sample size
Increase short-term earnings	Annual earnings	Year 1	High	6,572.00	7,131.00	559.00	2016 dollars	798
Increase short-term employment	Employed for four consecutive quarters	Year 1	High	29.30	36.10	6.80	percentage points	798
Increase short-term employment	Ever employed, quarterly	Quarter 5	High	62.40	68.60	6.20	percentage points	798
Decrease short-term benefit receipt	Amount of AFDC/TANF benefits, annual	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	Year 1	High	4,679.00	4,600.00	-79.00	2016 dollars	799
Decrease short-term benefit receipt	Received AFDC/TANF, annual	Year 1	High	96.30	96.50	0.20	percentage points	799
Decrease short-term benefit receipt	Received Food Stamps/SNAP, annual	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.

Findings quality key:

High
Moderate

Study quality terms?

The findings quality describe our confidence that a given study’s finding is because of the intervention. 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 intervention, rather than due to chance. Findings are described as moderate-to-large if the intervention 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

All individuals in the sample were recipients of MFIP cash assistance in one of the three participating counties. The average participant was 30 years old, female (81 percent), and head of a single-parent household (84 percent). Almost two-thirds of participants were Black, and almost 16 percent were White. Ten percent reported having limited English skills, 36 percent had ever been convicted of a crime, and 11 percent reported caring for someone with a disability.

Age

Mean age

31 years

Sex

Female	81%
Male	19%

Participant race and ethnicity

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

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%

Participant employment and public benefit status

Had low incomes

100%

Participant education

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

Specific employment barriers

Had a disability	8%
Were formerly incarcerated	35%
Were experiencing homelessness	4%
Were immigrants	13%

Intervention implementation

Implementing organization:

Three nonprofit service providers (HIRED, Avivo, and Goodwill-Easter Seals) implemented the MSTED program across three counties.

Program history:

Minnesota had funded subsidized employment programs since 2007, but the MSTED program was new.

Intervention services:

Individuals assigned to the intervention group were participants in Minnesota's TANF program, called the MFIP, who were given access to MSTED services and subsidized employment. 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 8 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 8 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 intervention group also had access to MFIP employment services.

Mandatory services:

None

Comparison services:

Individuals assigned to the comparison group were participants in Minnesota's TANF program, called the MFIP, who were not given access to MSTED services. Comparison group participants had access to 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.

Intervention funding:

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

Cost information:

The average cost of providing the intervention was $14,013 per participant. The average cost of providing comparison group services was $9,073 per person. The net intervention cost, or difference between the two, was $4,940 per person. This represents how much more it cost to provide intervention services compared to comparison services.

These figures are based on cost information reported by study authors. The Pathways Clearinghouse converted that information to a single amount expressed in 2018 dollars; for details, see the FAQ. This information is not an official price tag or guarantee.

Study publications

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.

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.

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

The Pathways Clearinghouse refers to interventions by the names used in study reports or manuscripts. Some intervention 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)