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Study Gives Minnesota Welfare Program Rave Reviews

Reform: Innovative initiative uses financial incentives to encourage work and help reduce poverty. But critics point to added state costs.

August 28, 1997|MELISSA HEALY | TIMES STAFF WRITER

For long-term recipients like 23-year-old Tracy Gearhart, a single mother of one from Minneapolis, the inducements to try work--along with the constant prodding of a caseworker she was required to check in with--finally did the trick. After almost five years on welfare, Gearhart recently took a full-time job as a membership representative at the YWCA, earning $7.25 an hour. Now with money in a savings account and once-fuzzy career plans clarified by exposure to the job market, she says she'll never go back to the life she lived on welfare.

"I had said, 'I'm just not going to get anywhere making $7.25 per hour.' I wanted to start out at the top. I wanted them to put me through college," she said Wednesday. But Gearhart's caseworker, Kate Ellefson, pounded home MFIP's message that to get a good job, you have to start somewhere. She showed Gearhart how, under MFIP, taking a $7.25-per-hour-job could nearly double her income. And she could put her 5-year-old daughter, Samantha, in day care at no cost until her income started to grow.

"Then I started having money all the time, and I opened up a savings account and started putting money away," said Gearhart. "I couldn't imagine not having this job now. I don't know how I could have lived--or did live--on $640 a month."

But the study released Wednesday suggested that by themselves, inducements to work were of limited help in prodding welfare recipients to get jobs. The real results, said Knox, came when recipients were required to participate in structured job-search and placement activities as well. The combination gave some of the welfare rolls' most reluctant workers both the push and the pull to work.

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