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IX: Conclusion
This review study has shown that a range of employment approaches has the potential to improve the economic success of low-income individuals and that there are multiple areas that warrant further research and study. In documenting these innovative approaches and learning about creative programs across the country, we observed several trends that should be considered as federal, state, and local policymakers and program administrators move forward in supporting and evaluating these kinds of efforts.
One issue that clearly emerged from this review was that many of the initiatives identified combine elements from multiple models and are relatively comprehensive in the range of the services they provide. While there are some programs that clearly represent a singular approach, we observed numerous programs that mix multiple approaches such as combining skill development with subsidized jobs, linking access to work supports with skill development and asset-building strategies, and integrating curricula and instructional adaptations for low-skilled individuals into employer-driven training programs. From a programmatic perspective it makes sense to link these different elements, and, indeed, efforts to connect different strategies in new combinations often represented the most innovative aspect of the programs we reviewed. From an evaluation standpoint, however, it is important to understand whether specific components are important for participants’ economic success or whether it is the packaging of service elements that is responsible for improved outcomes.
While much of the past research on effective employment strategies for disadvantaged workers focused on cash assistance recipients, this study shows that many of the initiatives that represent innovative future directions are more broadly focused on low-income individuals that include but are not limited to the TANF population. In part this is because TANF agencies are now more likely to focus on preventing welfare dependency and supporting working families than in the past because of the flexibility allowed in spending TANF resources. But it also reflects the unmet needs of many low-income workers, many of whom remain entrenched in poorly paying jobs despite existing policies and programs to assist them. It should be noted that due to passage of the Deficit Reduction Act of 2006 (that occurred while this study was underway) many states are now required to involve a greater portion of their TANF caseload in work activities. This could result in an increased focus on developing employment strategies for the TANF population.
As a result of the comprehensive nature of many of the programs identified in this study, many involve partnerships of multiple public- and private-sector organizations. These generally include some combination of workforce development agencies, community colleges, TANF agencies, unions, community-based organizations, and employers. While establishing these partnerships was no doubt difficult in some circumstances, the prevalence of interagency and private-public collaborations indicates that addressing the needs of low-income populations may require the commitment of a range of partners that can provide expertise and support in different areas. Some of the partners involved in these efforts have not traditionally worked together—particularly community colleges, employers, and intermediary organizations—so there is much about the nature of the collaboration that is innovative.
In part because of the different service delivery systems and relatively broad target populations, the initiatives discussed here are often financed through a number of public funding streams (such as workforce development, postsecondary education, and TANF), and many also rely on private foundations and contributions for support. Employers also play an important financial role in some programs, particularly those involving employer-based skill development. Program administrators generally had to commit significant time and energy to develop the level of resources needed to operate the programs, particularly those that are more comprehensive.
Outside the TANF system, it is notable that significant innovation and activity for low-income parents at the state and local level focuses on making skill-development programs more accessible to low-income workers and more tailored to employer needs. While other types of initiatives, particularly work supports and employment-based options such as subsidized or temporary employment, receive continued attention, skill-development approaches are a strong area of innovation at this time. Innovations in pre-employment training for low-income students have shifted from an individual-based approach—where training is typically more general and tries to give students a range of skills that can be used in different jobs—to one more focused on employer needs that sacrifices some of this generality to improve the fit of the skills to specific jobs. There is also increased attention to building career ladders, focusing on providing training that current workers need to move up to higher quality jobs. These initiatives focus on making training more accessible to workers in terms of schedule and curriculum and linking skill upgrade programs directly to job advancement opportunities.
Compared with many of the past programs evaluated, many of the approaches and programs identified here include strong involvement from the private sector. Particularly regarding approaches focused on skill development or providing work supports, there are a range of innovative initiatives that potentially benefit both individuals and businesses, many of which take place at the worksite or strongly reflect employer training and skill needs. Many of these initiatives that involve private-sector employers, particularly sectoral training and work support programs, use third-party intermediaries to build in-depth knowledge of the industry, establish relationships with multiple employers, coordinate training options, and conduct research to monitor industry’s changing needs. While many of the innovative efforts identified here involve employers, further growth in this area is likely to require attention to create incentives for employer participation in initiatives that address the needs of low-wage workers, particularly in tight labor markets.
A final observation from this study is the prevalence of case management services that provide participants with individualized assistance to plan for future activities and address issues that arise in school, at home, or on the job across the different approaches. While some past research efforts have focused exclusively on the role that case management services can play in improving outcomes for disadvantaged populations, this review indicates that case management services are ubiquitous across a range of different service models, including service-oriented interventions for the hard-to-employ, subsidized employment and temporary jobs, skill-development approaches at both educational institutions and employers, and work support programs.
This study cannot point to the effectiveness of any of the highlighted approaches or programs identified. Nor does this study address the operational strategies and attendant implementation challenges and lessons involved in administering the range of program approaches discussed here. However, this review documents some of the innovative efforts being undertaken by a number of states, localities, and organizations to build on past research and promote the economic success of low-income parents. These efforts warrant future attention by researchers and program evaluators, and also provide direction to those looking for innovative employment strategies for low-income populations.
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