'Good Behavior' Still Pays Off

The Wall Street Journal

...The program, called Family Rewards, is a partnership between research firm MDRC, community groups and the city. The first round cost $30 million in private funding and sent nearly $20 million to 4,800 families over three years.

Critics said the program wouldn't help people move out of poverty if jobs didn't exist or if schools were bad, which researchers acknowledged.

"There are many components to the poverty problem and no single intervention is going to address all of them," said James Riccio, who ran the research for MDRC. "This is working on the other side of the equation...."

...The full study showed little effect on doctor's visits, employment, and elementary and middle-schoolers' test scores or attendance. Some of the encouraging initial results diminished over time. Families had more money in the bank, but that was attributed to the program's cash payments.

There were bright spots: Students already proficient in reading were more likely to graduate. Nearly 75% of students who were ninth-graders when the program launched graduated on time, compared with 67% of the control group. Researchers attributed the increase to the payments, which included $600 for passing each Regents test required for graduation....

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