Absence of conflict of interest.
Citation
Cummings, D. (2023). Effects of the Subsidized and Transitional Employment Demonstration on earnings after eight years. (OPRE Report No. 2023-204). U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research and Evaluation. [Atlanta]
Highlights
- The study's objective was to examine the impact of the Subsidized and Transitional Employment Demonstration (STED) on earnings and wages in seven sites. This profile focuses on Atlanta’s Good Transitions program. The authors investigated similar research questions for other sites; profiles of those studies are available here:
- The study was a randomized control trial that assigned 996 participants to either the Good Transitions program or a control group. Using a baseline survey and administrative data from the National Directory of New Hires (NDNH), the author used a statistical model to compare the outcomes of treatment and control group participants.
- The study found that treatment group participants had significantly higher annual earnings than control group participants in the first three years after study enrollment.
- The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized control trial. This means we are confident that the estimated effects are attributable to the Good Transitions program, and not to other factors.
Intervention Examined
Good Transitions
Features of the Intervention
Good Transitions is a transitional jobs program in Atlanta, GA designed to support low-income parents who do not have custody of their child (i.e., noncustodial parents) and who owe child support. The program uses a staged transition model where participants are initially provided a transitional job for one month at Goodwill, followed by subsidized employment at a private-sector firm, and then unsubsidized employment. Good Transitions program participants also receive case management and job coaching services.
Features of the Study
The study was a randomized control trial conducted in Atlanta, Georgia to examine the impact of the Good Transitions program. The 996 participants who enrolled in the study were randomly assigned to either the Good Transitions program (the treatment group) or a control group with access to community-based services. Most participants were men (94 percent). Almost all were Black (91 percent), 3 percent were Hispanic, and 4 percent White. More than two-thirds had a past criminal conviction in the state of Georgia and one-third had been previously incarcerated in prison. The study relied on multiple data sources for analysis, including a baseline survey at study enrollment and quarterly earnings and unemployment insurance data from the National Directory of New Hires (NDNH). The author used a statistical model to compare the outcomes of treatment and control group participants.
Findings
Earnings and wages
- The study found that treatment group participants earned significantly more annually than the control group ($4,645 more) in the first three years after study enrollment.
- The study did not find statistically significant differences in annual earnings between the treatment group and the control group in years four to eight after study enrollment.
- The study also did not find a statistically significant difference in cumulative earnings between the treatment group and the control group over the eight-year follow-up period.
Causal Evidence Rating
The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized control trial. This means we are confident that the estimated effects are attributable to the Good Transitions program, and not to other factors.