A Fresh Look at an Old Debate: Assigned Work Activities, Employment, and Post-program Earnings in TANF Work Programs

Abstract

This study asserts that the type of work activity in which a Temporary Assistance for Needy Families (TANF) participant engages affects the likelihood of employment and post-program earnings. Using a Heckman selection model on administrative data from Louisiana's social service office and unemployment insurance wage data (N = 15,816) and controlling for individual and parish characteristics, this study reveals that two work activities, on-the-job training and unsubsidized employment, are associated with an increased probability of employment. Further, unsubsidized employment, on-the-job training, and vocational education are positively associated with earnings, while job search, school attendance, and work experience are negatively associated with earnings.