Strategies to Boost Demand for Low-Income Workers and Enhance Employment Policies

Dec 19, 2025

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This chapter discusses various employment policies aimed at increasing demand for low-income workers and welfare recipients. It highlights the supply-side challenges, including the ineffectiveness of past programs like CETA and JTPA, which have failed to significantly impact earnings or adequately assist those in greatest need. The chapter also points out the high costs of employment programs and low participation rates among target groups, along with information gaps that hinder effective job placements. A focused approach is necessary to create meaningful job opportunities and improve economic outcomes for vulnerable populations.

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Strategies to Boost Demand for Low-Income Workers and Enhance Employment Policies

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Chapter 15: Employment Policies
Increasing Demand
Increase the demand specifically for low income workers and welfare recipients
Increase the demand for low-income workers and welfare recipients
Supply Side Policies
Supply Side Policies
Supply Side Policies
General Problems • PSE jobs are “make work” that teaches few skills. • CETA and JTPA have very modest impact on earning (not cost effective) • CETA, JTPA, and WIS cream and do not adequately help the neediest • Employment programs are expensive and therefore inadequately funded. • Low percentages of the target population actually participate. • Information gaps hinder placements.