Supported Work Leads to Lasting Labor Market Success Among TANF Recipients

Tania Barham (), Brian C. Cadena () and Lauren Schechter ()
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Tania Barham: University of Colorado, Boulder
Brian C. Cadena: University of Colorado, Boulder

No 18342, IZA Discussion Papers from IZA Network @ LISER

Abstract: This paper studies the effects of a supported work program that provides TANF recipients with a suite of services including a six-month subsidized internship with a local employer. We use rich administrative data and implement a stacked difference-in-differences design comparing program participants to observably similar TANF recipients to estimate effects on employment, earnings, and benefit receipt. Program enrollment led to an immediate increase in formal-sector employment and earnings, with limited post-program fadeout. The program increased employment by 10 percentage points (20 percent) and earnings by \$861 per quarter (48 percent) in the three years following program exit. Program participation also increased participants' total benefit receipt during the program, with modest decreases after program exit. The program is relatively cost-effective compared to other adult subsidized employment programs due to longer-than-average persistence of the employment and earnings gains.

Keywords: active labor market programs; TANF; subsidized employment; staggered difference-in-differences (search for similar items in EconPapers)
JEL-codes: H43 I38 J24 J68 (search for similar items in EconPapers)
Date: 2025-12
New Economics Papers: this item is included in nep-lab and nep-lma
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