In September 2017, MDRC released interim findings from the Paycheck Plus demonstration and evaluation of an enhanced Earned Income Tax Credit for low-wage workers without dependent children in New York City. Here are a few answers to questions we’ve received about the results.
Interim Findings from the Paycheck Plus Demonstration in New York City
Paycheck Plus offers workers without dependent children an enhanced Earned Income Tax Credit (EITC) worth up to $2,000 per year for three years (four times the current EITC for singles). Results after two years from a random assignment evaluation show that it has increased income and work rates.
Final Results from the Family Self-Sufficiency Study in New York City
FSS provides case management services and a long-term escrow-savings account to housing-assisted families; an enhanced version also offered short-term cash work incentives. Six-year results of the random assignment evaluation show few significant effects overall for either program. However, the enhanced program increased employment and earnings for participants not working at enrollment.
Boosting the Earned Income Tax Credit for Workers Without Dependent Children
The Earned Income Tax Credit (EITC) promotes work and raises over six million Americans out of poverty each year. Early results from an ongoing demonstration suggest that expanding the EITC for singles, an idea with bipartisan support, is feasible and can increase employment and income while reducing poverty.