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Subgroups
The study considered in this review is a substudy of the Paycheck Plus Demonstration (considered in another review). In order to be eligible for Paycheck Plus, 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 the 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 further restricted attention to the 5,968 individuals randomly assigned between September 27, 2013, and February 18, 2014. Among individuals assigned to the Paycheck Plus group who 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. This review examines the difference across these two subgroups of Paycheck Plus intervention group members.
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 $10,000 in the year before study enrollment.
MDRC and the Food Bank for New York City.
The 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 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, individuals were offered information about, and referrals to, employment services in their area.
The individuals assigned to the comparison group received the same income-based tax credits as the comparison group. But the program did not provide them with information about, or referrals to, employment services.
None.
Referrals were provided over several months, and tax credits were provided for 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.
None