The second-year impacts of Texas' Job Opportunities and Basic Skills (JOBS) program for early participants were analyzed. A quasi-experimental study design was used to analyze data about 13,396 JOBS participants and 13,303 comparison group members. The analysis focused on the labor market outcomes of JOBS participants and their exits from and returns to the Aid to Families with Dependent Children (AFDC) program. The strength of the impacts of JOBS participation proved to be growing over time. By 8-10 quarters after program entry, the sampled JOBS participants had significantly higher rates of AFDC exits, AFDC exits to employment, and employment rates than comparison group members and significantly higher earnings for 5 of the 10 groups studied. Although JOBS participants left AFDC at significantly higher rates than comparison group members, they also returned to JOBS at the same or higher rates than the comparison group. Participation in the education and training components of the JOBS program produced significant positive effects on all labor market outcomes and AFDC exits and significantly reduced rates of AFDC recidivism. (Twenty tables/figures are included. Appended is a description of the evaluation study methodology and seven tables detailing results of a regression analysis of the JOBS program's second-year impacts.) (MN)