An evaluation of Jobs First (JF) compared the experiences of JF participants who were subject to welfare reform policies with those of Aid to Families with Dependent Children (AFDC) participants who were subject to prior welfare rules. It collected information for four years about JF's impacts on participants' children and analyzed its financial benefits and costs for participants and governments. Findings indicated implementation of the employment component was problematic, with persistent difficulties monitoring participation; the JF group heard a different message from the welfare system than did the AFCD group--one that was more strongly focused on employment and moving to self-sufficiency; just over half the JF group reached the time limit; JF increased employment, earnings, and income and did not affect receipt of cash assistance; JF immediately increased employment; program impacts on employment and earnings were concentrated among individuals facing greater barriers to employment; JF had no consistent effect on a wide range of indicators of material well-being; levels of hardship remained high for families in both groups; JF had a few positive effects on behavior of elementary school children and mixed effects for adolescents; over 5 years, governments' investment in JF was not offset by decreased welfare payments; and the investment generated substantial gains in income and services for JF participants. Appendixes include supplementary tables, exhibits, and analyses. (Contains 99 references.) (YLB)