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.
Home Visiting and Coordinated and Integrated Early Childhood Systems
Funders at all levels are investing in programs to support expectant parents and families with young children. MDRC is conducting research in that field in three areas: integrating systems of services that work together, getting families and children the right services, and building evidence about promising models.
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.
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.
Year 1 of Paycheck Plus
The Paycheck Plus demonstration is testing the effects of a more generous Earned Income Tax Credit-like earnings supplement for low-income single adults in New York City. This brief describes the implementation of the program during the first year and supplement receipt rates during the 2015 tax season.
Early Lessons from Family Rewards 2.0
This project builds on NYC’s earlier experiment with a conditional cash transfer program to reduce poverty and improve education, health, and employment outcomes. It tests a revised model in the Bronx and Memphis, adding family guidance to modified incentives paid more frequently. Early implementation findings suggest deeper family engagement.
This two-page issue focus uses infographics to explain a groundbreaking demonstration project that tests the impact of a new work-based earnings supplement, similar to the Earned Income Tax Credit (EITC), on economic and social outcomes for single adults.