The Wall Street Journal
For Welfare Clients, Temporary Jobs Can Be a Roadblock
Short Assignments May Stall Goals of Self-Sufficiency, A Detroit Study Suggests
Michigan Weighs New Options
By DEBORAH SOLOMON
December 15, 2006; Page A1
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Proponents of welfare-to-work argue that a client who gets a job, even a temporary one, is less likely to become chronically dependent on public aid. Nationally, between 15% and 40% of all welfare recipients who do work are in temp jobs. The prevailing view among Detroit officials and others has been that temp jobs, despite their obvious disadvantages, help welfare recipients taste the dignity of work and develop valuable habits, such as punctuality and learning how to interact with others.
But a recent study of job programs in Detroit, which has one of the largest welfare populations in the country, is challenging the long-held belief that a temp job is better than no job. "Encouraging low-skilled workers to take temporary help agency jobs is no more effective -- and possibly less effective -- than providing no job placements at all," says economist Susan Houseman, of the W.E. Upjohn Institute for Employment Research, a Kalamazoo, Mich., think tank. She is co-author, with David Autor of the Massachusetts Institute of Technology, of a study that tracked 23,000 Detroit welfare recipients. The results surprised even the researchers. "If anything, we thought that temporary agencies would help welfare workers build skills, connect with potential employers, and so increase their future earnings," says Mr. Autor. "But this is not what we found."
Temp-agency work, they discovered, can create an unyielding cycle of finding and losing jobs. Detroit's Work First clients often had low morale, slim chances for job stability and plenty of setbacks. "While you're working at the temp job you're not connecting with direct-hire employers...you're not making any advances towards finding a permanent job," says Ms. Houseman.
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One reason: When a welfare recipient loses a job -- especially through no fault of his or her own -- it can create resistance to wanting to work, says Mr. Chapman, a psychologist. In those cases, battle-scarred clients "are more difficult to send on another placement, saying, 'I know how this works, it's a merry-go-round,'" he says. In addition to their ephemeral nature, temp jobs can have what the researchers call a "displacing" effect. They take up valuable time that welfare recipients could be using to find better, more stable positions. The temporary path may also divert some workers to dead-end jobs that ultimately discourage them from staying in the job market.
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