Recent research by the Manpower Demonstration Research Corporation (MDRC) indicates that while recipients in public housing may be a more difficult-to-employ group in some locales, they may also benefit the most from mainstream welfare-to-work programs. Some policy implications raised by the evidence include the following: (1) the link between employment and housing among welfare recipients is not well understood; (2) in some cities, welfare recipients living in public housing are harder to employ than other recipients, but not everywhere; (3) welfare-to-work programs can be more effective for recipients in public housing than for those in other types of housing; (4) policymakers should look beyond mainstream welfare-to-work programs to help recipients in public housing succeed more in the labor market; and (5) Jobs-Plus, an employment program aimed at urban public housing residents could do more for public housing residents than mainstream programs targeted without respect to housing status. The study concluded that public officials ought to make housing status a key consideration in developing strategies to strengthen mainstream welfare-to-work programs, and that special efforts may be required in order to promote big improvements in the self-sufficiency of welfare recipients in public housing. (KC)