Evidence from the past 4 years confirms that private sector jobs are the best and first resort for welfare recipients seeking to enter the workforce and that the private sector can well absorb the entry of these new workers. The model of wage-based transitional employment may be a more effective means of helping hard-to-employ welfare recipients make the transition from welfare to work than large-scale workfare programs are. Programs providing wage-based transitional employment allow participants to take advantage of the Earned Income Tax Credit to supplement their earnings, and they instill the expectations of the working world in participants. Wage-based programs typically supplement job placements with training, education, or counseling to assist participants in overcoming obstacles to employment, and they also benefit employers and communities. The most successful wage-based transitional jobs programs incorporate the following elements: (1) generous work supports and postprogram transitional services; (2) flexible, performance-based administration under a public/private model; and (3) safeguards against displacement of existing workers. The following programs are examples of successful wage-based transitional jobs programs: EarnFair (New York); the Transitional Work Corporation (Philadelphia); Community Jobs (Washington State); the Industrial Exchange (Tulsa, Oklahoma); the Community Service Employment Program (Vermont); and Jobs Plus (Oregon). (11 references) (MN)