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The Project on Devolution and Urban Change studied the effects of welfare reform in the counties encompassing the following cities: Cleveland, Ohio; Los Angeles, California; Miami, Florida; and Philadelphia, Pennsylvania. In May 1995, the 3,900 women in the sample were receiving public assistance and living in high-poverty neighborhoods. After 3-4 years, the women were interviewed about their recent employment experiences. Three-fourths of the women had worked in the past 2 years, and about half were working at the time of the interview. Although many of the current and former welfare recipients achieved high employment stability, most were in jobs with low earnings, and most could not lift their families out of poverty without other sources of income. Only half the women had health insurance, and most of the women and their families faced multiple material hardships, including food insecurity, housing problems, and unmet health care needs. Nearly all those who worked faced barriers to employment. The data provided evidence that government policies aimed at addressing the needs of the working poor have fallen short of their goals. (Nineteen tables/figures/boxes are included. Key measures by site are appended along with information on employment status and stability in the urban change survey sample. The bibliography contains 44 references.) (MN)