Scribd Logo
Upload

Welcome to Scribd!

  • Why Pay Wages For Transitional Jobs

    Uploaded by

    tjprograms
    115 views3 pages
    The Transitional Jobs strategy uses subsidized employment to help prepare jobseekers facing barriers to employment for a successful transition into the workforce. There are a number of reasons to believe that paid work experience is more beneficial than unpaid experience for facilitating this transition and helping individuals achieve self‐sufficiency. For example, paid work experience provides much‐need earned income to stabilize individuals and families, and has positive economic ripple effects throughout low‐income communities. Evidence on welfare‐to work programs suggests that unpaid work experience has little if any impact on earnings and employment outcomes or reducing reliance on public benefits. Moreover, unpaid work experience fails to reward work, does not promote mobility, and may open the door to exploitation of workers.

    Original Title

    Why Pay Wages for Transitional Jobs

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Transitional Jobs strategy uses subsidized employment to help prepare jobseekers facing barriers to employment for a successful transition into the workforce. There are a number of reasons to believe that paid work experience is more beneficial than unpaid experience for facilitating this transition and helping individuals achieve self‐sufficiency. For example, paid work experience provides much‐need earned income to stabilize individuals and families, and has positive economic ripple effects throughout low‐income communities. Evidence on welfare‐to work programs suggests that unpaid work experience has little if any impact on earnings and employment outcomes or reducing reliance on public benefits. Moreover, unpaid work experience fails to reward work, does not promote mobility, and may open the door to exploitation of workers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    115 views3 pages

    Why Pay Wages For Transitional Jobs

    Uploaded by

    tjprograms
    The Transitional Jobs strategy uses subsidized employment to help prepare jobseekers facing barriers to employment for a successful transition into the workforce. There are a number of reasons to believe that paid work experience is more beneficial than unpaid experience for facilitating this transition and helping individuals achieve self‐sufficiency. For example, paid work experience provides much‐need earned income to stabilize individuals and families, and has positive economic ripple effects throughout low‐income communities. Evidence on welfare‐to work programs suggests that unpaid work experience has little if any impact on earnings and employment outcomes or reducing reliance on public benefits. Moreover, unpaid work experience fails to reward work, does not promote mobility, and may open the door to exploitation of workers.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    September,2012 ChrisWarland,NationalTransitionalJobsnetwork

    WhyShouldTransitionalJobsProgramsPayWages?
    TheTransitionalJobsstrategyusessubsidizedemploymenttohelppreparejobseekers facingbarrierstoemploymentforasuccessfultransitionintotheworkforce.Therearea numberofreasonstobelievethatpaidworkexperienceismorebeneficialthanunpaid experienceforfacilitatingthistransitionandhelpingindividualsachieveselfsufficiency.For example,paidworkexperienceprovidesmuchneedearnedincometostabilizeindividuals andfamilies,andhaspositiveeconomicrippleeffectsthroughoutlowincomecommunitiesi. Evidenceonwelfaretoworkprogramssuggeststhatunpaidworkexperiencehaslittleifany impactonearningsandemploymentoutcomesorreducingrelianceonpublicbenefitsii. Moreover,unpaidworkexperiencefailstorewardwork,doesnotpromotemobility,and mayopenthedoortoexploitationofworkers. TheNationalTransitionalJobsNetwork(NTJN)definesaTransitionalJobasawagepaid realworkexperience.Whywagepaid?ThereareothermeansofcompensatingTransitional Jobsprogramparticipantsbesideshourlywages,suchaswithtrainingstipendsoras independentcontractors.Thesestrategiesmayhavesomeadvantagesinprotecting programoperatorsfrompotentialliabilityorineasingadministrativeburdens,buttheNTJN maintainsthatthebenefitsthatwagepaidworkofferstoparticipantsoutweighany benefitsthatorganizationsmightreceivefromavoidingpayinghourlywages.Thispaper offersabriefrationaleforwhytheNTJNrecommendspayinghourlywagestotransitional workersasabestpractice. PayingwagesmakesTJarealworkexperience OneofthekeyfactorsthattheNTJNhasidentifiedthathelpmakeaTransitionalJoba developmentallearningexperienceistheuseofworksitesandexperiencesthatconstitute realworkascloselyaspossible.Bypayingwages,aTransitionalJobreinforcesthe relationshipbetweenhoursworkedandpayreceived.Italsoallowsforrealisticmodeling lessonsinfinancialliteracysuchasbudgetingapaycheckoropeningabankaccount. Perhapsmostimportantly,payingtaxesthroughpayrollwithholdingallowsparticipantsto maketheircontributiontosocietyinawaythatispredictableandautomaticotherforms ofcompensationmaymakeparticipantsresponsibleforpayingtaxesafterthefact,which couldbeanundueburdenonaninexperiencedlowincomeworkerjustenteringthe workforce.PayrolltaxwithholdingalsoensuresthatparticipantsarepayingintoSocial Securityandunemploymentinsurance,whichmayimpacttheirfuturefinancialwellbeing.

    Arealreferencefromarealemployer Thelackofacurrentreferenceorrecentworkhistorycanpresentasignificantbarrierfor jobseekers,andconventionalwisdomholdsthatitiseasiertofindajobwhenyoualready haveajob.Arealwagepayingjobandemployerreferenceonajobapplicationmaycarry moreweightwithaprospectiveemployerthanarecenttrainingexperienceorinternship position.Moreover,byfollowingbestpracticestocreatearealworkexperience,paying wagesandactingastheemployerofrecord,aTJprogramcanapproachemployersas peersemployertoemployerwhenworkingtoplaceparticipantsinunsubsidized employment,andvouchforthemascurrentproductiveemployeesingoodstanding. Nothingindicatesworkreadinessquiteaswellasholdingacurrentjobwithapositive reference. Accesstotaxcredits Oneofthelargestandmostimportantfederalantipovertyprogramsforlowincome workersistheEarnedIncomeTaxCredit(EITC),which,forexample,providesarebateofup to$464forsingleindividualsormarriedcouplesfilingjointlywithoutchildren,and$5,112 forfamilieswithtwoormoredependentchildren.Inaddition,23statesandtheDistrictof ColumbiahavetheirownsupplementalEITCs.Bypayingwagesandwithholdingtaxes,a TransitionalJobsprogramcanensurethatitsparticipantsareeligibletoclaimtheEITC. Protectingworkers Finally,itisimportanttorememberthattheregulationsandrequirementsplacedon employerswithregardtocarryinginsurance,followingwageandhourlaws,andensuring workplacesafetyaretheretoprotectworkers.Byactingasemployerofrecordand acceptingtheresponsibilitiesthatcomewithemployingtransitionalworkers,TJprograms ensurethattheirtransitionalworkersreceivealltheprotectionsandrightsduethemunder thelaw.Theycanalsosendamessagetotheircommunitiesandtheirfellowemployersthat theybelievethatrealworkshouldbecompensatedbyrealwagesandallworkersshouldbe protectedfrominjuryandjobloss. Conclusion TheNTJNrecognizesthatactingasemployerofrecordfortransitionalworkerssometimes representsadauntingsetofresponsibilities,risksandliabilities,andcanplaceadditional burdensonoverstressedandunderfundedadministrativecapacity.Itisalsotruethatmany programs,forvariousreasonsincludingrestrictionsimposedbyfundingsources,areunable topaywagesandhavedeterminedthatusingotherformsofcompensationforparticipants istheirbestoption.However,manyTJprogramshaveadoptedthepolicyofpayingwages, andhavedonesowithgreatsuccessandwithoutjeopardizingthefinancialor administrativehealthoftheirorganizations(watchfortheNTJNsforthcomingbriefon actingasemployerofrecord).Whenmakingdecisionsabouthowtocompensate transitionalworkers,programprovidersshouldcarefullyconsidertheadvantagesfor participantsthatcomewithpayingrealwagesworkerprotections,accesstotaxcredits,a referencefromarealjob,andaworkexperiencethatcloselymirrorsunsubsidizedworkin orderbesttopreparethemforsuccessintheworkforce.

    Kushner, J. (2012, February). Chicago Neighborhood JobStart evaluation report: A transitional jobs response to the great recession. Chicago: Social IMPACT Research Center. ii Brock, T., Butler, D., & Long. D. (1993). Unpaid work experience for welfare recipients: findings and lessons from MDRC research. New York: MDRC.

    Togetmoreinformation,requesttechnicalassistance,orsharesuccessfulstrategies, pleasecontactChrisWarlandatcwarland@heartlandalliance.org
    TheNationalTransitionalJobsNetworkis(NTJN)isacoalitionofcity,state,andfederalpolicymakers; communityworkforceorganizations;antipovertynonprofitserviceprovidersandadvocacyorganizations committedtoadvancingandstrengtheningTransitionalJobsprogramsaroundthecountrysothatpeople withbarrierstoemploymentcangainsuccessintheworkplaceandimprovetheireconomiclivesandthe economicconditionsoftheircommunities.TheNTJNsupportsaconstituencyofover4,000activemembers andstakeholdersacrossthecountry.

    TheNTJNisaprojectofHeartlandAllianceforHumanNeeds&HumanRights.

    You might also like