Lights to Employment was an experimental program aimed at integrating recipients of income support benefits into employment. The program replaced Mehalev (the Israeli version of the From Welfare to Work program) in August 2007 and in December that year, it was expanded to adjacent areas. The program was discontinued in April 2010, following the decision of the Knesset Labor, Welfare and Health Committee. The MJB Institute and the National Insurance Institute conducted extensive evaluations of the original Mehalev program and of Lights to Employment. This is the second follow-up study on Lights to Employment. It monitors those who were referred to the program during its first 6 months, at the time of its discontinuation in April 2010, and again 8 months later.
Among the main findings:
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Employment: At the time the program was discontinued, significant positive impacts were found on the overall employment rate (12 percentage points) and on the full-time employment rate (10 percentage points). Eight months later, similar impacts were found (7 percentage points and 11 percentage points, respectively).
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Income Support Benefit: The impact on income support receipt was considerable, particularly in the Stock. At the time the program was discontinued, a significant reduction in benefit receipt was found in the Stock (26 percentage points), but not in the Flow. Thus, the average overall reduction was 12 percentage points. Eight months after discontinuation, the findings remained similar.
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Employment retention: Employment retention rates were high. About two-thirds of those who had started work during the program were still working when it was discontinued. About 80% of them were still working 8 months later.
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Assistance from the Centers: The participants who began working during the program noted that the work-support services (childcare arrangements, transportation to work) and the employment retention grant helped them more than workshops, courses, etc.
The report has been presented to the directors of the Ministry of Industry, Trade and Labor, which was responsible for implementation of the program, and will be an important resource for future discussions about the program.
The study was commissioned and funded by the Government of Israel.