Job separation outcomes of welfare hires: Insight from linked personnel and state administrative data

Abstract

This article makes use of a unique personnel data set and state administrative data to follow welfare and nonwelfare hires that separate from similar jobs with the same firm. Welfare hires are more likely to be on welfare after separation but are equally likely as similarly low-skilled nonwelfare hires to transition to another job after separation. Among those with a new job, welfare hires experience a significantly lower wage gain, suggesting that welfare hires would benefit (even more than nonwelfare hires) from focused assistance with job search and transition skills. (JEL H53, J62, C35) © 2008 Western Economic Association International.