New York City Family Rewards

Summary

New York adapted PROGRESA for a US urban context. The program reduced poverty significantly while payments were active, increased health coverage, and improved some schooling outcomes. However, effects on the hardest-to-reach families—those neither in school nor employed—were smaller. Most crucially, gains faded after the program ended. The mixed result illustrated a key design tension: cash transfers change behavior while the cash flows but may not produce durable human capital changes without complementary services. The honest evaluation became a model for publishing null and mixed findings.

Research question

"Can a conditional cash transfer program modeled on PROGRESA reduce poverty and improve outcomes in a US urban context?"

Methodology

Result

Mixed

Poverty rate: −11 pp during program; health insurance: +6 pp; high school course passing: +10 pp; sustained employment among those initially working: positive; effects mostly faded after payments ended

Evidence strength

Strong

Randomized controlled trial with large sample.

Replication status

Partially replicated