A study reviewed the efforts of six states (California, Florida, Minnesota, Oregon, Texas, and Washington) to create new policies and strategies to support low-income individuals as they work. The study found the following: (1) working steadily initially after leaving welfare is linked to being employed in later years but is not linked to higher wages in later years; (2) starting out in better jobs is linked both to being employed and to having higher wages in later years; (3) educational skills and credentials are strongly linked to obtaining better jobs; and (4) motivation, social skills, and labor market opportunities colored the outcomes but are difficult to observe. The study determined that "work first" strategies work in the short term but not in the long run; that "mixed strategies" of pre-employment services and job placement are more likely to produce long-term success; and that "work-based strategies," such as supported work for the harder to employ or on-the-job training for more employable workers, are most effective in increasing employment and earnings. The study concluded that work force development strategies should include removal of barriers to employment through access to services, emphasis on upgrading skills through postsecondary education, and use of combinations of work and learning. Recommendations were made to develop state policy so that full-time workers earn incomes above the poverty level, to provide supportive services for low-wage workers, and to encourage greater response from educational institutions. (Contains 25 references.) (KC)