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