Effects of the Subsidized and Transitional Employment Demonstration on earnings after eight years (OPRE Report No. 2023-204) (Cummings, 2023)

Study Profile What's in a study profile?
Causal Study Rating:
High Causal Evidence
Study Type:
Causal Impact Analysis
Outcome Findings:
Earnings and wages: Mod/high-Favorable impacts
Citation
Cummings, D. (2023). Effects of the Subsidized and Transitional Employment Demonstration on earnings after eight years. (OPRE Report No. 2023-204). U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research and Evaluation. [New York]

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Absence of conflict of interest.

Highlights

  • The study's objective was to examine the impact of the Subsidized and Transitional Employment Demonstration (STED) on earnings and wages in seven sites. This profile focuses on New York’s Young Adult Internship Program. The authors investigated similar research questions for other sites; profiles of those studies are available here:
  • The study was a randomized control trial that assigned 2,678 participants to either the Young Adult Internship Program or a control group. Using a baseline survey and administrative data from the National Directory of New Hires (NDNH), the author used a statistical model to compare the outcomes of treatment and control group participants.
  • The study found that treatment group participants had significantly higher annual earnings than control group participants in the first three years after study enrollment and significantly higher cumulative earnings over the eight-year follow-up period.
  • The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized control trial. This means we are confident that the estimated effects are attributable to the Young Adult Internship Program, and not to other factors.

Intervention Examined

Young Adult Internship Program

Features of the Intervention

New York City has been implementing workforce development programs for disconnected youth since 2007. The Young Adult Internship Program is a workforce development program that serves young adults who are not in school and not working (i.e., disconnected youth). Young Adult Internship Program participants are offered a paid internship, job-readiness training, and case management services.

Features of the Study

The study was a randomized control trial conducted in New York City, New York to examine the impact of the Young Adult Internship Program. Of the 2,678 participants who enrolled in the study, 1,638 were randomly assigned to the Young Adult Internship Program (the treatment group) and 1,040 to the control group with access to other community-based services. The average study participant age was 21 years old. More than half were Black (58 percent), and more than a third Hispanic (36 percent). A third had a high school diploma (33 percent). The study relied on multiple data sources for analysis, including a baseline survey at study enrollment and quarterly earnings and unemployment insurance data from the National Directory of New Hires (NDNH). The author used a statistical model to compare earnings and wages of treatment and control group participants.

Findings

Earnings and wages

  • The study found that treatment group participants earned significantly more annually than the control group ($4,670 more) in the first three years after study enrollment.
  • The study did not find statistically significant differences in annual earnings between the treatment group and the control group in years four to eight after study enrollment.
  • The study also found that treatment group participants had significantly higher cumulative earnings than control group participants ($7,164 more) over the eight-year follow-up period.

Causal Evidence Rating

The quality of causal evidence presented in this report is high because it was based on a well-implemented randomized control trial. This means we are confident that the estimated effects are attributable to the Young Adult Internship Program, and not to other factors.

Additional Sources

Skemer, M., Sherman, A., Williams, S., & Cummings, D. (2017). Reengaging New York City’s disconnected youth through work: Implementation and early impacts of the Young Adult Internship Program (OPRE Report No. 2017-22). U.S. Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research and Evaluation.
Reviewed by CLEAR: June 2026

Topic Area

Registered Apprenticeship and Work-Based Learning

Job Search Assistance

Opportunities for Youth

Research Guidelines

Review Protocol: Living Systematic Annual Search and Review Protocol

Review Guidelines: Causal Evidence Guidelines