Subsidized and Transitional Employment Demonstration (STED), Los Angeles, California, 2012-2019

MDRC conducted randomized controlled trials to evaluate two distinct approaches to subsidized employment for Temporary Assistance for Needy Families (TANF) recipients in Los Angeles County. The first model studied, Paid Work Experience (PWE), subsidizes the wages of individuals placed at employers in the nonprofit or public sector for up to six months. The second, On-the-Job Training (OJT), offers wage subsidies to for-profit employers who agree to place employees onto their payrolls after an initial two-month tryout period; if they do, the wage subsidies can continue for up to an additional four months. The evaluation included an implementation study, an impact study, and a cost analysis.