What Works Best for Whom? The Effects of Welfare and Work Policies by Race and Ethnicity

Using data from random assignment studies, this paper examines how welfare and work policies similar to those adopted by states since 1996 affected employment, welfare receipt, and income of white, African-American, and Hispanic welfare recipients. The results show little systematic variation in the effects of the programs across racial and ethnic groups. Earnings and welfare benefits were affected the most by programs that stressed employment but allowed people who lacked basic skills to initially enroll in education or training. Only programs that supplemented the earnings of welfare recipients who went to work increased income across the racial and ethnic groups.