Panel Paper: Paycheck Plus: Building Evidence for an Expanded Earned Income Tax Credit (EITC) for Single Adults

Thursday, November 6, 2014 : 1:00 PM
Taos (Convention Center)

*Names in bold indicate Presenter

Kate Dempsey, Carson Hicks and Jean-Marie Callan, NYC Center for Economic Opportunity
Considered the most successful antipoverty program in the US, policy leaders from both parties have long advocated a more robust Earned Income Tax Credit (EITC) for single workers without dependent children. However, until now the effects of an expanded EITC for single adults have remained untested.

New York City is testing the potential impacts of an expanded EITC for singles for the first time through a new pilot project called Paycheck Plus. Paycheck Plus is a local demonstration project that is testing a simulated, expanded EITC for low-income single workers without dependent children, and includes a rigorous random assignment evaluation to inform policy discussions focused on poverty and work supports.

This presentation will discuss the expected outcomes of an expanded EITC for singles which include reduced poverty, increased earnings, and increased employment, as well as a potential increase in the payment of child support by non-custodial parents and a potential decrease in criminal justice system involvement, which could be achieved through increased participation in the formal labor market. The presentation will address how Paycheck Plus was designed to measure these potential outcomes, specifically discussing the design of the random assignment evaluation which will make use of both administrative data and surveys of the participants.