This report presents the findings from a three-year study of two San Diego demonstration projects designed to increase unsubsidized employment and reduce welfare dependency and costs. One involved a job search requirement, while the other combined that requirement with a short-term work obligation. Overall, compared to the few earlier studies on similar approaches, the results are favorable. The San Diego programs successfully implemented a short-term participation requirement for new applicants to welfare. For applicants to Aid to Families with Dependent Children (ADFC)--mainly female single parents who constitute a majority of the welfare caseload--both programs increased employment and proved cost-effective for both the applicants and taxpayers. The programs were particularly effective for individuals often ignored by employment and training programs: those whose characteristics define them as difficult to employ. For the AFDC-U applicants--primarily men from two-parent households--the results are mixed. Both programs substantially reduced welfare costs but did not increase employment significantly, with the result that taxpayers gained but the welfare applicants did not. These findings offer valuable evidence on the potential and limits of job search and work experience in increasing employment and reducing welfare dependency. Five appendices provide supplementary tables, information on related data collection studies, data sources, and a bibliography. (KH)