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Transitional jobs

Health Factors: Employment
Decision Makers: Employers & Businesses Local Government State Government Federal Government Nonprofit Leaders
Evidence Rating: Scientifically Supported
Population Reach: 1-9% of WI's population
Impact on Disparities: Likely to decrease disparities

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Description

Transitional jobs are time-limited, subsidized, paid jobs intended to provide a bridge to unsubsidized employment. These positions are generally available to hard–to-employ individuals, such as those with limited or no job history, Temporary Assistance for Needy Families (TANF) recipients, or individuals with criminal records. Transitional jobs can be in government, non-profit, or for profit organizations, and may be combined with training and services to help participants overcome barriers to employment and build work-related skills.

Expected Beneficial Outcomes

Increased employment
Increased earnings
Reduced recidivism
Reduced poverty

Evidence of Effectiveness

There is strong evidence that transitional and subsidized jobs programs increase employment and earnings for low income adults, youth, unemployed individuals, TANF recipients, and recently released former prisoners for the duration of their subsidized position (Mathematica-Maxwell 2015, EMC-Roder 2013, OPRE-Butler 2012, MDRC-Jacobs 2012, OPRE-Redcross 2012). However, these gains do not appear to last beyond the duration of the transitional job (OPRE-Butler 2012, MDRC-Jacobs 2012, OPRE-Redcross 2012).

Transitional job programs appear to have no effect on longer term employment among TANF recipients and individuals who have been incarcerated (OPRE-Butler 2012, MDRC-Jacobs 2012, OPRE-Redcross 2012); evaluations suggest programs may increase competitive employment and earnings after subsidized employment ends for other populations. The Catholic Charities Community Transitional Jobs Program (CLASP-Baider 2006), Personal Roads to Individual Development and Employment (PRIDE) (MDRC-Bloom 2010a), and some subsidized jobs programs supported by the American Recovery and Reinvestment Act (ARRA), for example, appeared to have longer term effects. Ongoing employment stemming from ARRA-supported programs was largely in private firms, which are more likely to have funds to support additional employees than nonprofit or public employers (EMC-Roder 2013).

Transitional job programs may reduce recidivism among individuals who have been incarcerated (MDRC-Jacobs 2012, OPRE-Redcross 2012, MDRC-Bloom 2010a). The Center for Employment Opportunities’ program in New York City, for example, reduced recidivism among participants who entered the program within three months of release from prison, particularly those who were more disadvantaged and those most likely to re-offend (OPRE-Redcross 2012). However, the Transitional Jobs Reentry Demonstration, implemented in several Midwestern cities, did not appear to affect recidivism rates (MDRC-Jacobs 2012).

Program costs vary based on program structure (e.g., maximum wage rates and hours worked, percentage of wages and payroll costs subsidized, and maximum time allowed for participation). For example, the cost of fully subsidizing the wages and payroll costs for a full-time job paying $10 per hour for six months is $12,226 (CBPP-Pavetti 2011). In Wisconsin’s implementation of ARRA-subsidized job funding, the average cost per subsidized placement was $7,913 (EMC-Roder 2013).

A recent report projects that providing subsidized jobs to unemployed and underemployed individuals in families with children would reduce child poverty by 11%--1.2 million children--with the greatest benefit among black children (Urban-Giannarelli 2015). Provision of jobs at this scale would cost approximately $22.9 billion (CDF 2015).

Income gains to participants in transitional and subsidized jobs programs may be offset by reduced government benefits and increased taxes (CDF 2015, Mathematica-Maxwell 2015). 

Implementation

United States

Transitional jobs programs exist throughout the country (NTJN), but are not universally available.

Two multisite projects, the federal Department of Labor’s Enhanced Transitional Jobs Demonstration and the Department of Health and Human Services’ Subsidized and Transitional Employment Demonstration, are currently testing new subsidized employment models for hard-to-employ populations such as welfare recipients, former prisoners, and low income noncustodial parents (MDRC 2013).

In 2013, Colorado established a transitional jobs program that gives priority to unemployed or underemployed non-custodial parents, veterans, or displaced workers that are fifty years of age or older (NCSL-CS Legislation 2013).

Wisconsin

Wisconsin Works (W-2) offers community service jobs to TANF participants. Community service jobs include real work training with additional support and supervision. Transform Milwaukee Jobs (TMJ) is a transitional jobs program to assist low income adults in Milwaukee County in transitioning into stable unsubsidized employment (WI DCF-Wisconsin works).

Implementation Resources

CEO - Center for Employment Opportunities (CEO). Change that works. Accessed on December 14, 2015
NTJN - National Transitional Jobs Network (NTJN). Heartland Alliance. Accessed on March 29, 2016

Citations - Evidence

CBPP-Pavetti 2011 - Pavetti L, Schott L, Lower-Basch E. Creating subsidized employment opportunities for low-income parents: The legacy of the TANF emergency fund. Washington, DC: Center on Budget and Policy Priorities (CBPP); 2011. Accessed on December 1, 2015
CDF 2015 - Ending child poverty now. Washington, DC: Children's Defense Fund (CDF); 2015. Accessed on July 27, 2017
CLASP-Baider 2006 - Baider A, Frank, A. Transitional jobs: Helping TANF recipients with barriers to employment succeed in the labor market. Washington, DC: Center for Law and Social Policy (CLASP); 2006. Accessed on November 24, 2015
EMC-Roder 2013 - Roder A, Elliott M. Stimulating opportunity: An evaluation of ARRA-funded subsidized employment programs. New York: Economic Mobility Corporation (EMC); 2013. Accessed on February 4, 2016
Mathematica-Maxwell 2015 - Maxwell NL, Rotz D.  Building the employment and economic self-sufficiency of the disadvantaged: The potential of social enterprises. Princeton: Mathematica Policy Research (MPR); 2015. Accessed on February 4, 2016
MDRC-Bloom 2010a - Bloom D. Transitional jobs: Background, program models, and evaluation evidence. New York: Manpower Demonstration Research Corporation (MDRC); 2010. Accessed on March 14, 2016
MDRC-Jacobs 2012 - Jacobs E. Returning to work after prison: Final results from the transitional jobs reentry demonstration. Manpower Demonstration Research Corporation (MDRC); 2012. Accessed on February 4, 2016
OPRE-Butler 2012 - Butler D, Alson J, Bloom D, et al. What strategies work for the hard-to-employ: Final results of the hard-to-employ demonstration and evaluation project and selected sites from the employment retention and advancement project. Washington, DC: Office of Planning, Research and Evaluation (OPRE), Administration for Children and Families (ACF), US Department of Health and Human Services (US DHHS); 2012. Accessed on March 2, 2017
OPRE-Redcross 2012 - Redcross C, Millenky M, Rudd T, Levshin V. More than a job: Final results from the evaluation of the Center for Employment Opportunities (CEO) transitional jobs program. Washington, DC: Office of Planning, Research and Evaluation (OPRE), Administration for Children and Families (ACF), US Department of Health and Human Services (US DHHS); 2012. Accessed on March 2, 2017
Urban-Giannarelli 2015 - Giannarelli L, Lippold K, Minton S, Wheaton L. Reducing child poverty in the US: Costs and impacts of policies proposed by the Children's Defense Fund. Washington, DC: Urban Institute; 2015. Accessed on February 4, 2016

Citations - Implementation

MDRC 2013 - Subsidized employment: A strategy for bad economic times and for the hard-to-employ. New York: Manpower Demonstration Research Corporation (MDRC); 2013. Accessed on February 4, 2016
NCSL-CS Legislation 2013 - National Conference of State Legislature (NCSL). 2013 Child support-related legislative enactments by state. Accessed on February 4, 2016
NTJN - National Transitional Jobs Network (NTJN). Heartland Alliance. Accessed on March 29, 2016
WI DCF-Wisconsin works - Wisconsin Department of Children & Families (DCF). Wisconsin works (W-20). Accessed on May 24, 2016

Page Last Updated

March 5, 2015