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Subgroups
To be eligible for the study, participants had to (1) be unmarried, (2) have a valid Social Security number, (3) not plan to claim a dependent child on their taxes, (4) be between 21 and 64 years old, (5) have earned less than $30,000 in the prior year, and (6) not receive or be applying to receive Supplemental Security Income or Social Security Disability Insurance. Between September 2013 and February 2014, more than 6,000 eligible participants were recruited and randomly assigned to a group that received Paycheck Plus or to a comparison group that was not eligible for Paycheck Plus but was eligible to receive other existing tax credits. The study restricts its attention to the 5,968 individuals randomly assigned between September 27, 2013, and February 18, 2014. The study team attempted to survey about 80 percent of these individuals (selected by random sampling) 32 months after assignment. In addition, among individuals assigned to the intervention group who also earned less than $10,000 per year, half were randomly assigned to an employment referral group that received additional information about, and referrals to, local employment services. Another review examines the contrast between these two groups.
2014 to 2016
The demonstration was funded by the New York City Mayor's Office for Economic Opportunity (NYC Opportunity), the Robin Hood Foundation, the Laura and John Arnold Foundation, the Edna McConnell Clark Foundation, the U.S. Department of Health and Human Services Office of Child Support and Enforcement, and the Chan Zuckerberg Initiative.
All study participants were unmarried and had earned less than $30,000 in the year before study enrollment. On average, participants were about 37 years old at the time of random assignment, and all were ages 21 to 64. More than half of participants (59 percent) were male. The majority were Black (58 percent), 30 percent were Hispanic, and 12 percent were White. About one-quarter (22 percent) did not have a high school degree or a diploma. Nearly half of participants (45 percent) were employed at the time of random assignment, and about 18 percent had been formerly incarcerated.
MDRC and the Food Bank for New York City.
The Paycheck Plus program began with this evaluation.
The individuals assigned to the intervention group were eligible to receive up to $2,000 in income-based tax credits (including the federal earned-income tax credit [EITC] and Paycheck Plus credit). Individuals earning less than $29,900 were eligible for at least some credit. The credit was paid based on earnings reported in 2014, 2015, and 2016, at tax time during the subsequent year (that is, in 2015, 2016, and 2017). In addition, a random subsample of individuals who had earned less than $10,000 in the year before random assignment were offered information about, and referrals to, employment services in their area.
The comparison group was not offered Paycheck Plus but could continue to receive the EITC if eligible. As all individuals in the study were single adults at enrollment, the maximum federal EITC an individual could qualify for was $510, with individuals earning $15,010 or less receiving some EITC.
None.
Participants were eligible to receive Paycheck Plus bonuses for up to three years.
NYC Opportunity, the Robin Hood Foundation, the Laura and John Arnold Foundation, the Edna McConnell Clark Foundation, the U.S. Department of Health and Human Services Office of Child Support and Enforcement, and the Chan Zuckerberg Initiative.
The study was conducted in New York City.
Tax filing, Criminal justice, Poverty, Material hardship, Health, Child support, Family formation, Banking, Savings
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