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Subgroups
The Minnesota Family Investment Program (MFIP)—which was the state's Temporary Assistance for Needy Families (TANF) program—referred 1,250 participants in Ramsey, Dakota, and Hennepin Counties to MSTED providers. MSTED staff provided each referred individual with information on the program and on the study. MSTED providers enrolled a total of 799 individuals who agreed to participate. MSTED providers then randomly assigned each individual into either the intervention group (403) or the comparison group (396). Sample enrollment and random assignment took place from November 2014 to June 2016.
MSTED enrolled participants from November 2014 to June 2016. The study includes two follow-ups that occurred 12 months (the manuscript reviewed here) and 30 months (to be discussed in a future publication) after random assignment, respectively.
U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research, and Evaluation funded the evaluation under the Subsidized and Transitional Employment Demonstration, 2010–2020.
All individuals in the sample were recipients of MFIP cash assistance in one of the three participating counties. The average participant was 30 years old, female (81 percent), and head of a single-parent household (84 percent). Almost two-thirds of participants were Black, and almost 16 percent were White. Ten percent reported having limited English skills, 36 percent had ever been convicted of a crime, and 11 percent reported caring for someone with a disability.
Three nonprofit service providers (HIRED, Avivo, and Goodwill-Easter Seals) implemented the MSTED program across three counties.
Minnesota had funded subsidized employment programs since 2007, but the MSTED program was new.
Individuals assigned to the intervention group were participants in Minnesota's TANF program, called the MFIP, who were given access to MSTED services and subsidized employment. MSTED services included working with a job developer to assess job readiness; workshops and one-on-one training to support job readiness as needed; and assistance finding subsidized employment. The MSTED model included two subsidized employment options: (1) paid work experience at a public agency or nonprofit organization, during which participants improved their workplace skills and earned fully subsidized wages of $9 per hour for up to 24 hours per week for 8 weeks; or (2) a subsidized job with a private employer during which individuals could earn subsidized wages of up to $15 per hour for up to 40 hours per week. Wages were fully subsidized for the first 8 weeks, and the subsidy was reduced to 50 percent for an additional 8 weeks. The option of a subsidized job with a private employer was intended for participants deemed more job-ready by MSTED staff. All members of the intervention group also had access to MFIP employment services.
Individuals assigned to the comparison group were participants in Minnesota's TANF program, called the MFIP, who were not given access to MSTED services. Comparison group participants had access to MFIP employment services, which included structured job-readiness classes, independent job search, uncompensated work experience, community service, English as a second language training, and education services (postsecondary education or training, adult basic education, and high school completion or GED classes).
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MSTED participants in paid work experience received fully subsidized wages for up to 8 weeks. Subsidized jobs participants received fully subsidized wages for 8 weeks, and then the subsidy was reduced to 50 percent for an additional 8 weeks.
The Minnesota Department of Human Services funded the program with state funds.
This study took place in Ramsey, Dakota, and Hennepin Counties in Minnesota; these are the three most populated counties in Minnesota. One or two nonprofit service providers in each county delivered services to participants.
Self-reported economic and personal well-being