FOR IMMEDIATE RELEASE:
Thursday, August 20, 1998
Contact: Michael Kharfen, (202) 401-9215
New Report Shows Early Success for Los Angeles Welfare-to-Work Efforts
HHS Secretary Donna E. Shalala released a new study today reporting
strong early results for Los Angeles County's welfare-to-work program, Jobs-First
GAIN, in substantially increased employment and family earnings as well as overall
welfare costs. The study was released jointly with the Manpower Demonstration
Research Corporation (MDRC) and Los Angeles County.
The results are among the most impressive ever measured in a
full-scale welfare-to-work program in a large urban area. Los Angeles County
has the largest welfare population of any county in the nation -- larger than
any state except New York and California. The County made a major shift in its
welfare to work program from primarily education and training for a small number
of recipients to a work first focus for most of its recipients.
"As we mark the second anniversary of the President's signing
of the new welfare law, this report on Los Angeles County gives important early
evidence that welfare reform can succeed in large cities," said Secretary
Shalala.
"The promising news of Los Angeles County's program is that
it can work on a large scale with a diverse and disadvantaged population of
families on welfare. We are eager to see more results as the program and evaluation
proceed," added Shalala.
Jobs-First GAIN covers a broad segment of the welfare caseload,
including persons just entering or returning to the welfare rolls, as well as
long-term welfare recipients. The evaluation encompasses nearly 21,000 welfare
recipients. Forty-five percent are Hispanic, 31 percent African-American, and
17 percent white. The period covered by the evaluation is 1996 to 1997.
The results released today are preliminary and cover a six-month
period. After six months in the program, 43 percent of the Jobs-First participants
were employed, compared to 32 percent for the control group. During the same
period, earnings for the Jobs-First group outpaced the control group by about
46 percent or $1,286 vs. $879. Overall, the program reduced welfare costs by
8 to 10 percent.
"The Los Angeles County program proves that a well implemented,
work focused program can better the job and earnings prospects of parents on
welfare," said Olivia A. Golden, HHS assistant secretary for children and
families. "As we learned recently in a study of Oregon's work first program,
a strong 'work' message combined with high quality, intensive services to find
jobs are crucial ingredients for employment with increased earnings potential."
We encourage states to look closely at Los Angeles County's program
and invest in the critical supports, such as child care, to ensure that newly
employed parents stay and advance in the work force," added Golden.
The Los Angeles County results of increased job placements, higher
levels of employment after six months and higher earnings mirror the measures
under which states can compete for additional funds in the new welfare law's
annual $200 million High Performance Bonus.
Sample participants are being followed for two years to determine
the program's effects on their employment and earnings, job quality, job retention,
welfare and Food Stamp receipt, and outcomes for their children. A final report,
tentatively scheduled for late 1999, will present longer-term impacts and will
analyze the program's cost-effectiveness.
The report, "The
Los Angeles Jobs-First GAIN Evaluation: Preliminary Findings on Participation
Patterns and First Year Impacts," was prepared by MDRC under contract
to Los Angeles County, with additional support from the U.S. Department of Health
and Human Services and the Ford Foundation. The report is available on the ACF
web site at http://www.acf.dhhs.gov.
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Note: All HHS press releases, fact sheets and other press materials are
available at http://www.hhs.gov/news.
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