An evaluation was conducted of the effectiveness of California's Greater Avenues for Independence (GAIN) Program, a statewide initiative aimed at increasing the employment and self-sufficiency of recipients of Aid to Families with Dependent Children. Based on 2 years of follow-up data for 33,000 people who entered GAIN between early 1988 and mid-1990, the study explored the program's effects on employment, earnings, and welfare receipt and updated the 1-year results of an earlier study. The findings revealed a number of positive trends. For single parents, who represented about two-thirds of the welfare applicants and recipients in the study, the earnings gains and welfare savings that GAIN produced in the first year of follow-up grew stronger in the second year. For the heads of two-parent families, the second-year impacts on these two measures approximately equaled those for the first year. Although the results varied considerably across the six counties studied, five of the six produced modest-to-large earnings gains or welfare savings (or both) over the entire 2-year period. In addition, some counties showed substantial effects across a number of subgroups of welfare recipients, including long-term recipients. (Twenty-eight tables and nine figures are provided. Appendixes contain 19 supplemental tables and a supplemental figure. Contains 14 references.) (YLB)