Why Should Transitional Jobs Programs Pay Wages?

Sep 01, 2012 | by
  • Description

The Transitional Jobs strategy uses subsidized employment to help prepare jobseekers facing barriers to employment for a successful transition into the workforce. There are a number of reasons to believe that paid work experience is more beneficial than unpaid experience for facilitating this transition and helping individuals achieve self-sufficiency. For example, paid work experience provides much-needed earned income to stabilize individuals and families, and has positive economic ripple effects throughout low-income communities. Evidence on welfare-to work programs suggests that unpaid work experience has little if any impact on earnings and employment outcomes or reducing reliance on public benefits. Moreover, unpaid work experience fails to reward work, does not promote mobility, and may open the door to exploitation of workers.