A study analyzed the implementation, impact, and cost-effectiveness of an on-the-job training (OJT) program for recipients of Aid to Families with Dependent Children (AFDC) in New Jersey, operated as part of the state's Work Incentive (WIN) Demonstration system. Enrollees in the program, mostly female single heads of household, were placed with employers for six months of training, with half their wages paid by the state for the trial period. They were to be hired after the six months if they worked satisfactorily. New Jersey used a process known as welfare grant diversion to finance the wage subsidies. An experimental group and a group of similar women who did not participate in the program were compared. The study found that approximately 200 people were placed in jobs, with slightly more than half completing the subsidy period. All but one of those completing the subsidized period were retained as unsubsidized employees. The OJT program led to substantial employment gains in the first two quarters after random assignment; the gains then declined sharply. The OJT program completers earned 22 percent higher wages than average for the control group. The OJT group spent fewer months on AFDC and received $265 less in welfare payments in the first year after the experiment. The study concluded that the program could be expected to pay for itself within about two and one-half years, with savings thereafter, and it benefitted those enrolled in it. (KC)