When Washington state’s Division of Child Support closed its offices in March 2020 in response to COVID-19, its employment program—Families Forward Washington—kept running with minimal interruption, because the original design was based on working remotely. Its model may offer useful pointers for other service agencies for adapting to the pandemic.
The COVID-19 pandemic has heightened the nation’s awareness of the critical role that low-wage workers — cashiers, nursing assistants, delivery people — play in our lives. MDRC’s Cynthia Miller summarizes research about how expanding the Earned Income Tax Credit can effectively supplement their earnings and lead to other positive benefits for them and their families.
Interim Findings from the Paycheck Plus Demonstration in Atlanta
The Earned Income Tax Credit reduces poverty for many low-income families but does little for workers without dependent children. Paycheck Plus, being tested in New York City and Atlanta, offers an expanded credit to this population. This report presents its two-year impacts on employment, earnings, and income in Atlanta.
Final Impact Findings from the Paycheck Plus Demonstration in New York City
Paycheck Plus raises the top tax credit for low-income workers without dependent children from $500 to $2,000. In a three-year test, the program increased after-credit earnings, reducing severe poverty; modestly improved employment among women and more disadvantaged men; and led to more noncustodial parents paying child support.
Lessons from the BIAS Project
The Behavioral Interventions to Advance Self-Sufficiency (BIAS) project launched an intervention in California to engage families in a welfare-to-work program and another intervention in New York to encourage low-income single adults without dependent children to attend a meeting about an earnings supplement program intended to provide an incentive to work.
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.
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.
Findings from Family Rewards 2.0
A program in Memphis and the Bronx offered cash incentives, coupled with family guidance, to poor families for meeting certain health care, education, and work milestones. The program increased income and reduced poverty, increased dental visits and health status, reduced employment somewhat, and had few effects on students’ education.
A Conditional Cash Transfer Program in Two American Cities
This program spent a little over a dollar to transfer one dollar in cash rewards to families who met the required benchmarks. These rewards produced positive effects on some outcomes, but left others unchanged. While the program benefited participating families, the cost to taxpayers exceeded the economic value of these effects.