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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. [Riverside]

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 Riverside 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 did not find significant differences in employment, earnings, and public benefits receipt outcomes between the Riverside PESD program group and control group.
  • This study receives a high evidence rating. This means we would be confident that the estimated effects are attributable to Postemployment Services Demonstration, and not to other factors. However, the study did not find any statistically significant effects.

Intervention Examined

Riverside’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 Riverside, California 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 PESD Riverside program targeted individuals who were welfare recipients who had been referred by or had participated in the JOBS program and had found a job that was reported by the JOBS case management staff.

Features of the Study

The study used a randomized controlled trial to examine the impact of Riverside’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 1,506 newly employed individuals, the authors randomly assigned 500 individuals to the program group to receive PESD program services. The 1,006 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 (92%) with an average age of 32 years old. Nearly half were White non-Hispanic (47%) and the majority had a high school degree or equivalent (63%). 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 did not find any significant effects of the PESD program on receipt of AFDC benefits, or the monthly dollar amount of AFDC benefits received.
  • The study did not find any significant effects of the PESD program on receipt of food stamps, or the monthly dollar amount of food stamps 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 would be confident that the estimated effects are attributable to the Postemployment Services Demonstration (PESD) program, and not to other factors. However, the study did not find any statistically significant effects.

Reviewed by CLEAR

June 2022

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