Cash TransfersCash transferMixed

New York City Family Rewards

NYC Center for Economic Opportunity / MDRC · New York City, USA · 2007

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

Intervention

Payments tied to preventive health visits, school attendance, and employment; up to $6,000/year per family in the Bronx, Brooklyn, and Manhattan

Assignment

Randomized controlled trial (family)

Sample size

4,800 families (2,400 treatment, 2,400 control)

Primary outcome

Poverty rates, school attendance, health insurance coverage, employment

Effect estimate

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

Decision

Program not renewed after initial period; city and MDRC concluded sustained structural changes (not just cash) needed; informed design of NYC EITC expansions

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

Institution

NYC Center for Economic Opportunity / MDRC

Location

New York City, USA

Year

2007

Policy area

Cash Transfers

Mechanism

Cash transfer