Programs designed to help disadvantaged workers improve their labor-market prospects may have effects beyond improvements in employment rates and income. One possible supplementary effect is improvements in subjective well-being, or how participants feel about their current life situations. Subjective well-being is important because there are social costs related to lower levels of well-being, and because a person’s outlook has been demonstrated to have an effect on his or her future behavior. The Subsidized and Transitional Employment Demonstration (STED) is designed to investigate the effects of subsidized and transitional employment programs on both financial and nonfinancial well-being. The STED project is evaluating a total of eight subsidized employment programs in seven locations across the United States, all of which aim to improve participants’ long-term success in the labor market. The programs target groups considered “hard to employ” (recipients of Temporary Assistance for Needy Families [TANF], people with criminal records, young people who are neither in school nor working, noncustodial parents, and others), and they use subsidies to give participants opportunities to learn employment skills while working in supportive settings, or to help them get a foot in the door with employers. Most of the programs also provide support services to help participants address personal barriers to steady work. (Author abstract)
The effects of subsidized and transitional employment programs on noneconomic well-being
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