Abstract:
Current approaches to fighting poverty tend to address the symptoms rather than the causes of poverty and hence are limited in their ability to provide permanent solutions. This paper examines the effect of a holistic, individualized wrap around service intervention called Padua on outcomes for low-income families. The intervention includes a detailed assessment, an individualized service plan, intensive case management administered by a two-person team with small caseloads, and temporary financial assistance used to overcome obstacles to self-sufficiency and incentivize behaviour. We evaluate the intervention through a randomized controlled trial. We recruited participants who were seeking assistance from a local social service provider. The control group received the services that they requested when they contacted the provider. Results indicate that two-years after enrollment the intervention leads to substantial increases in both work and earnings, although the effect on earnings is statistically insignificant. The customized nature of the services that Padua provides suggests that effects for the full sample might mask heterogeneity in program impacts. We find large and statistically significant improvements in earnings and employment for those not employed at baseline and those who are stably housed at baseline. For the latter group we also find a large and statistically significant decline in receipt of government benefits.
Co-authors:
William N. Evans (University of Notre Dame, LEO, NBER, J-PAL), Shawna Kolka and Patrick S. Turner (University of Notre Dame, LEO).
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