Welfare-to-work policies seek to build human capital by encouraging and facilitating greater or more beneficial participation in labor markets. Effective policies not only increase income but also generally raise the return to additional human capital investment. What are possibly effective policies? How can we know if they would be effective? How do we know if they are desirable?
In this chapter I answer the first two questions by proposing several policy demonstrations. Each of the demonstrations is motivated to some extent by existing research. Its execution would generate information that would enable researchers to determine its effectiveness. I answer the third question by reviewing the application of cost-benefit analysis (CBA) to the Minnesota Family Investment Program, one of the most important state initiatives in the welfare policy area in terms of breadth of assessment and contribution to policy development. (Edited author introduction)