S-Space Graduate School of Public Administration (행정대학원) Dept. of Public Administration (행정학과) Korean Journal of Policy Studies (정책논총, KJPS) Korean Journal of Policy Studies (정책논총) vol.31 no.1-3 (2016)
Evaluating Performance-Based Contracting in Welfare-to-Work Programs: Selection and Earnings Gain Effects in Wisconsin Works
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- Issue Date
- Korean Journal of Policy Studies, Vol.31 No.1 pp. 30-61
- The Wisconsin Works (W-2) program, the TANF program in Wisconsin,
has introduced performance contracting to align W-2 service providers objectives
with the states goals by establishing financial and administrative incentives.
Using individual-level administrative datasets from 1998 to 2005, this study
examines whether the introduction and revision of the earnings gain rate standard
improved the economic performance of W-2 participants. Results reveal that
under exacerbating economic conditions and weakening financial incentives, the
adoption of the earnings gain standard had a positive effect on maintaining the
earing gain of W-2 participants. However, W-2 agencies responded to the
changes in the earnings gain rate standard by controlling the movement of W-2
participants in and out of the program and selecting those who were more likely
to be employed. This study discusses a better contract design to improve the
effectiveness of the welfare service provision.
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