In this commentary originally published in Route Fifty, experts from MDRC’s Center for Applied Behavioral Science and BIT North America describe how government agencies can use behavioral science to adapt policies, programs, and services during the continuing pandemic crisis.
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.
What Worked, What Didn’t
Family Rewards offered cash incentives to low-income families to reduce both current and longer-term poverty, contingent on families’ efforts to build up their “human capital” through children’s education, preventive health care, and parents’ employment. While the program produced some positive effects on some outcomes, it left many outcomes unchanged.