MAKING WORK PAY FOR WELFARE RECIPIENTS

This paper describes five new welfare reform programs being tested in six areas of the United States and Canada. These programs all use fina ncial incentives to encourage selfsufficiency among welfare recipients . Some programs also provide employment and training services. A micro simulation model is used to predict the impacts of the two most genero us programs: the Canadian Self-Sufficiency Project (SSP) and the Minne sota Family Investment Program (MFIP). The simulation results suggest that SSP and MFIP will modestly increase the number of welfare recipie nts who work. However, because SSP has a fulltime work requirement and MFIP does not, only SSP is predicted to generate an increase in fullt ime employment.