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Federal government Quote by Kathryn Edin

“Government-subsidized private sector job creation is one way forward. Recently, the federal government sponsored a promising short-term subsidized jobs program through something called the TANF Emergency Fund. States that chose to participate were allowed to use TANF dollars to provide employers…” quote by Kathryn Edin
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““Government-subsidized private sector job creation is one way forward. Recently, the federal government sponsored a promising short-term subsidized jobs program through something called the TANF Emergency Fund. States that chose to participate were allowed to use TANF dollars to provide employers (mostly in the private sector) with incentives to hire unemployed workers, targeting those on TANF or those who were in a spell of extended unemployment. Each state was given considerable leeway to design the program however it saw fit, often in close collaboration with employers. Across the District of Columbia and the thirty-nine states that took part in the program, employers created more than 260,000 jobs with an investment of only $1.3 billion dollars. Roughly two-thirds of participating employers said they created positions that would not have existed otherwise, and the businesses that took part expressed, on the whole, eagerness to participate in such a program in the future. Further, many participants remained employed after the subsidy ended, and those who had experienced significant trouble finding work especially made gains. Researchers who studied the program noted that it garnered “strong support from employers, workers, and state and local officials from across the political spectrum.” Creating a subsidized jobs program modeled on the TANF Emergency Fund would be one way to improve the circumstances of America’s $2-a-day poor.””

Kathryn Edin

About This Quote

Source Report: TANF Emergency Fund Evaluation, 2021

The program used federal subsidies to incentivize private employers to hire unemployed workers, creating many jobs and showing broad support across political lines.

In simple terms: Subsidies helped create jobs and kept workers employed.

Key Takeaway

Use targeted subsidies to boost private sector hiring.

Themes

employment policy poverty alleviation public-private partnership

Mood

optimistic analytical

Type

policy economic social.

When to use this quote

  • state governments designing programs
  • employers offering jobs
  • workers transitioning from unemployment
  • policy makers evaluating impact

Key Concepts

Subsidy incentives labor market dynamics social safety nets

Questions to Reflect On

  • Can subsidies create sustainable jobs long term?
  • What are the risks of dependence on government funding?
A Different Perspective

Effectiveness may vary by state capacity and economic conditions.

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