Absence of conflict of interest.
Citation
Highlights
- The study's objective was to examine the impact of Michigan Opportunity and Skills Training (MOST)/Work First on public benefit receipt, employment, and earnings.
- The study was a randomized controlled trial that assigned participants to either the treatment or control groups. Using administrative data and surveys, the authors conducted statistical models to compare the outcomes of treatment and control participants at two- and three- years after random assignment.
- The study found that treatment group participants were significantly more likely to be employed, have higher earnings, and were less likely to receive public benefits compared to control group participants.
- The study receives a high evidence rating. This means we are confident that the estimated effects are attributable to Michigan Opportunity and Skills Training (MOST)/Work First, and not to other factors.
Intervention Examined
Michigan Opportunity and Skills Training (MOST)/Work First
Features of the Intervention
The Michigan Opportunity and Skills Training (MOST) operated in two Detroit districts: Fullerton-Jeffries and Hamtramck. The program provided case management and emphasized education and training activities for participants before seeking employment. Participants without a high school diploma or equivalent were assigned to a GED course, and participants with a high school diploma or equivalent were assigned to vocational or postsecondary education. The program also assisted with child care and transportation. The program transitioned to the Work First program in 1994 which focused on job search and quick entry into the job market. Participants who did not get a job in the first 30 days of Work First could participate in education and training activities or community work experience.
Features of the Study
The study was a randomized controlled trial. Individuals who called in to inquire about the program or were referred by staff at Aid to Families with Dependent Children (AFDC) were instructed to attend an orientation meeting. A total of 4,459 eligible participants were randomly assigned to the MOST program (treatment) or control groups at program orientation meetings between May 1992 and June 1994. The study focused on participants who were assigned to MOST and then referred to Work First within the two-year period. Participants were single parents, over 18 years old, and welfare recipients. The majority were women (97 percent), Black (87 percent), with an average age of 30 years. Treatment participants were eligible for MOST and then Work First services. Participants in the control group were not eligible for MOST or Work First services or subject to the program's participant requirements for three years. Data sources included Work First participation records, administrative data (state unemployment insurance, AFDC, and food stamp), and a client survey that was administered to a random sample of study participants. The authors used statistical models with controls to compare outcomes between the groups at two- and three- years after random assignment.
Findings
Earnings and wages
- The study found that treatment participants earned $311 more than control participants in year two and $585 more in year three. These differences were significant.
- The study did not find a significant difference in earnings between the groups in year one.
Employment
- The study found that more treatment participants than control participants were employed in year two (35 percent vs. 33 percent) and in year three (42 percent vs. 38 percent). These differences were significant.
- The study did not find a significant difference between the groups on employment in year one.
Public benefits receipt
- The study found that treatment participants received AFDC for fewer months over the study period than control participants, and that fewer treatment participants than control participants were receiving AFDC in the last quarter of year two (70 percent vs. 74 percent). These differences were significant.
- The study found that treatment participants were also significantly less likely to receive AFCD in the last quarter of year three (58 percent vs. 63 percent).
- The study found that treatment participants were significantly less likely than control participants to receive food stamps in the last quarter of year two (78 percent vs. 82 percent) and the last quarter of year three (67 percent vs. 71 percent).
- The study did not find any significant differences between the groups on the average dollar amount of AFDC or food stamps received over the study period.
Considerations for Interpreting the Findings
The study authors estimated multiple related impacts on outcomes related to earnings and wages, employment, and public benefits. Performing multiple statistical tests on related outcomes makes it more likely that some impacts will be found statistically significant purely by chance and not because they reflect program effectiveness. The authors did not perform statistical adjustments to account for the multiple tests, so the number of statistically significant findings in these domains is likely to be overstated. Also, the study reports a less stringent statistical significance level, considering p-values of less than 0.10 to be significant, though it is standard practice to consider statistical significance if the p-value is less than 0.05. Only results that demonstrate a p-value of less than 0.05 are considered statistically significant in this profile.
Causal Evidence Rating
The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized controlled trial. This means we are confident that the estimated effects are attributable to Michigan Opportunity and Skills Training (MOST)/Work First, and not to other factors.