Masters, Stanley H. 1981. "The Effects of Supported Work on the Earnings and Transfer Payments of Its AFDC Target Group." Journal of Human Resources 16(4):600-636.

The effects of Supported Work on a sample of 1620 long-term AFDC recipients are analyzed in this paper. We find positive, statistically significant effects on the postprogram earnings of experimentals. Although the experimental effect declines sharply over time at one of the seven sites, at the others the effect increases somewhat faster than the rate of inflation. The postprogram effects are concentrated disproportionately in public-sector employment, but not in CETA/WIN positions. The increased earnings of experimentals leads to significant payment reductions in welfare. In the long run, we estimate that the experimental effect on earnings will be $53 per month for earnings and $22 per month for disposable income.

The author is Project Associate, Institute for Research on Poverty and Industrial Relations Research Institute, University of Wisconsin.
* The author is most appreciative of the assistance he has received from many people. This paper is based on two reports, prepared for MDRC. The first was co-authored by Rebecca Maynard, who also provided valuable suggestions on the follow-up study. The second, the one on which this paper is primarily based, was co-authored by Tom McDonald, who also played an invaluable role helping with the computer side of the study. Gary Chamberlain provided especially useful advice at several stages. Katherine Dickinson contributed both many good ideas and consistent encouragement.

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