The Impact of a Mandatory Employment Program on Welfare Terminations

ABSTRACT

This longitudinal study analyzes the impact of one of the most ambitious employment and training programs in the nation, California's Greater Avenue for Independence (GAIN), on welfare terminations. The study isolates the effects of GAIN from other effects by controlling for AFDC program characteristics and labor market conditions. The findings suggest that, all else constant, GAIN increased terminations in a modest fashion. The paper discusses the difficulties future welfare-to-work programs are likely to have in substantially increasing terminations even with stringent mandatory work requirements.