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The effectiveness of the Postemployment Services Demonstration: Preliminary findings (Rangarajan, Meckstroth, & Novak 1998)

Review Guidelines

Absence of conflict of interest.

Citation

Rangarajan, A., Meckstroth, A., & Novak, T. (1998). The effectiveness of the Postemployment Services Demonstration: Preliminary findings. Springfield, IL: Illinois Department of Human Services. [San Antonio]

Highlights

  • The study’s objective was to examine the impact of the Postemployment Service Demonstration (PESD) program on employment, earnings, and public benefits receipt. This profile focuses on the San Antonio PESD program. The authors investigated similar research questions for other sites, the profiles of which can be found here.
  • The study used a randomized controlled trial to compare outcomes between individuals who received PESD services and a control group. Using survey data, the authors conducted statistical models to compare outcomes one year after PESD enrollment.
  • The study found that San Antonio PESD program participants received significantly less monthly public benefits than the control group.
  • This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to Postemployment Services Demonstration, and not to other factors.

Intervention Examined

San Antonio’s Postemployment Service Demonstration (PESD)

Features of the Intervention

The Job Opportunities and Basic Skills Training (JOBS) program is a welfare reform initiative under the Family Support Act of 1988 that attempts to promote work by increasing education and training. The Postemployment Services Demonstration (PESD) program was funded by the Administration for Children and Families and the Department of Human Services in 1993 to promote job retention and reemployment among newly employed Aid to Families with Dependent Children (AFDC) recipients. The PESD program provided additional case management services and support for employment expenses.

The PESD program in San Antonio, Texas provided counseling and support, job search assistance, assistance in applying for and resolving issues related to benefits, payments for work related expenses, and referrals for additional services. The San Antonio PESD program targeted individuals who had at least a high school degree or equivalent, worked 12 months in the past 24 months, and had a certificate from a training program.

Features of the Study

The study used a randomized controlled trial to examine the impact of San Antonio’s PESD program on employment, earnings, and public benefits receipt. The authors identified newly employed welfare recipients who had been referred to or participated in the JOBS program between March 1994 and December 1995. Of the 778 newly employed individuals, the authors randomly assigned 386 individuals to the program group to receive PESD program services. The 392 individuals assigned to the control group received regular welfare services offered through the state and through the JOBS program. The study sample was predominantly female (99%) with an average age of 30 years old. The majority were Hispanic or Latino (68%), and had a high school degree or equivalent (87%). Study data were collected through a survey distributed to a random subset of the program and control group participants who enrolled between July 1994 and August 1995. The study authors used statistical models to compare employment, earnings, and public benefit receipt outcomes between the program and control group one year after program enrollment.

Findings

Employment

  • The study found no significant differences in employment between the PESD program group and the control group.

Earnings and wages

  • The study found no significant differences in earnings between the PESD program group and the control group.

Public Benefits Receipt

  • The study found a significant difference in food stamp receipt between the PESD program group and the control group, where the control group was 8.9% more likely than the PSED program group to receive food stamps at the one year follow up.
  • The study also found a significant difference in the monthly dollar amount of food stamps received between the PESD program group and the control group, where the control group received $16 more than the PESD program group in monthly food stamps at the one year follow up.
  • The study did not find any significant effects of the PESD program on receipt of AFDC benefits, or the monthly dollar amount of AFDC benefits received.

Causal Evidence Rating

The quality of causal evidence presented in this report is high because it is based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to the Postemployment Services Demonstration (PESD) program, and not to other factors.

Reviewed by CLEAR

June 2022

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