New Hope Project: Recommendations

Recommendations

New Hope Project: New Hope for People with Low Incomes: Two-Year Results of a Program to Reduce Poverty and Reform Welfare (04/15/99)
  • The analyses show that a package of earnings supplements, health and child care benefits, and full-time job opportunities can substantially increase the work effort, earnings, and income of those who are willing to work full time, but need assistance to do so. Such effects are not limited to nonworkers and welfare recipients, but extend to many different groups of low-income people.
  • On the other hand, the analyses show that earnings supplements may lead to modest reductions in work effort among those already working full time or more than full time. Interestingly, New Hope shows that such reductions can be kept to a minimum and can actually benefit the families involved to the extent that these reductions limit excessive overtime or multiple jobs.
  • Finally, the New Hope evaluation shows how modest changes in income, employment, and family resources can have significant effects on noneconomic outcomes, such as family well-being and child outcomes. A narrow focus on economic outcomes may understate the effects of interventions like New Hope, whose benefits extend beyond those outcomes.