NCJ Number
81395
Date Published
1981
Length
237 pages
Annotation
This report presents the results of a benefit-cost analysis of the national Supported Work demonstration, a work experience program for the long-term unemployed, particularly long-term recipients of Aid to Families with Dependent Children (AFDC) benefits, ex-addicts in drug treatment, ex-offenders, and young school dropouts.
Abstract
The program gives temporary employment (unskilled jobs) to participants, who work in crews of peers. Work standards are gradually increased, and good performance and attendance are encouraged by a system of bonuses. In 10 of the demonstration's 15 sites, a sample of applicants were randomly assigned either to a program or a control group. Both groups were followed, through interviews, from the time of assignment for up to 3 years. All benefits and costs were measured and compared. The demonstration appears to be cost effective for long-term AFDC recipients and for ex-addicts. The long-term benefits exceed costs by over $8,000 per AFDC participant and over $4,000 per ex-addict participant. However, Supported Work for youths is not economically efficient. Long-term social benefits fall short of costs by about $1,500 per youth participant. The results for ex-offenders are incomplete, and definite conclusions cannot be drawn. Both ex-addicts and ex-offenders received substantially more income because of the program. Taxpayers are better off as a result of the Supported Work participation of AFDC and ex-addict target groups and worse off with respect to the participation of youths. Data tables, footnotes, and about 50 references are supplied.