March 22, 1999
Contact: Christian Basi
Sr. Information Specialist
(573) 882-4430
[email protected]
PRELIMINARY RESULTS SAY WELFARE-TO-WORK WORKING WELL
COLUMBIA, Mo. -- Controversy has surrounded programs like "Welfare-to-Work"since their inception. For years, experts have debated whether the programs would ever accomplish their goals. Recently, a study completed by a University of Missouri-Columbia professor described the impact these types of programs are having, and found that there is an increasing number of people who are getting off welfare and finding jobs.
"What we wanted to find out was what happened to people who left welfare, were they getting jobs and was this program successful?" said Peter Mueser, an associate professor of economics at MU. "Part of the philosophy is to help these people get jobs, not just to force them off of welfare. Since about 1990, long before federal welfare reform, the state has been working at getting caseworkers to focus on getting applicants jobs, not just signing them up for welfare benefits."
Mueser teamed up with four colleagues over the course of a year to study five cities in the United States: Kansas City, Mo.; Atlanta, Ga.; Baltimore, Md.; Ft. Lauderdale, Fla.; and Houston, Texas. The study looked at several factors in each of the five cities, including unemployment rates, caseloads, number leaving welfare, number entering welfare, exit rates, amount of time of recipients on welfare and employment rates for welfare leavers. The researchers found a trend that points to major changes occurring since 1990, especially in the last three years.
According to the study, the emphasis on moving welfare recipients into jobs is showing in the statistics. The researchers found an increasing number of those who leave welfare reporting earnings in the following quarter. Difficulties still exist though. The study found that after those who were the easiest to employ had obtained employment and moved off welfare, even in a strong economy, the remaining recipients were difficult to employ and retain.
"We found that even as progressively more people moved off the welfare rolls, a larger proportion were getting jobs," Mueser said. "The proportion in jobs was particularly high for Kansas City. This suggests that the reforms are, in fact, working."
The study does suggest additional analysis to find out what aspects of the program work and which ones need improvement. In a paper recently presented at the Southern Economic Association's annual meeting, the researchers suggested studying local labor market conditions to determine how they affect the new programs.
The project was funded by the U.S. Department of Labor through the University of Baltimore, and recently received a $100,000 grant to continue the work from the labor department through the Full Employment Council in Kansas City.
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