New Jersey Income Maintenance Experiment
The New Jersey Income Maintenance Experiment was designed to estimate the extent to which workers in poor families would be induced to work less by new income maintenance programs.
SPENDING BREAKDOWN
The data in this pie chart shows aggregate spending for guaranteed income participants in Los Angeles County, CA. This includes all non-cash expenditures from the participants’ pre-paid debit card that is loaded with guaranteed income payments monthly.
Food and groceries accounted for the largest share of spending, at 35.32%, followed by Retail sales and services (31.27%) and Transport related expenses (10.07%).
CHILD TAX CREDIT
The state of New Jersey saw significant reduction in poverty as a result of the largest, national pilot in the Child Tax Credit that was implemented as a result of the Covid Pandemic.
This program provided tax credit for eligible taxpayers with qualifying children in the form of cash payouts. The credit amount varied based on factors like the number of qualifying children and the taxpayer’s income. It can lower tax liability or result in a tax refund.
During the course of this pilot, it has been proven to reduce poverty for families with dependent children – in every state.
Poverty Rate (Current Law)
14.3%
Poverty Rate (Under new tax credit)
9.6%
Percentage point reduction
4.7%
Percent change
32.8%
DEMOGRAPHICS
Basic Information
sample size (Treatment Group)
900
Avg. Age of Respondent (years)
1
Children in Households
Have Children in Household
1
%
No Children in Household
5
%
Avg. children in Household
1
Avg. Household size
Gender
Male
1
%
Female
5
%
Other
5
%
Ethnicity
Hispanic
1
%
Non-Hispanic
%
Race
White
1
%
African American
5
%
American Indian/ Alaska Native
5
%
Asian
1
%
Native Hawaiian/ Pacific Islander
5
%
Latino
5
%
Other/ Mixed
5
%
Marital Status
Single
5
%
Married
5
%
Partnered/ in-relationship
5
%
Primary language at Home
English
5
%
Spanish
5
%
Other
5
%
Annual Household Income (in $USD)
Mean
$
14000
Median
$
10800
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Jeff
Jeff is a 34 year old male living in North Hollywood. Within a short time, Jeff lost his job, his mom got sick, he went through a divorce, and the pandemic hit. He said, “I lost my job, went through a divorce, and, with the pandemic, I was needing a way out. When I heard I was selected, I felt a huge relief and a huge weight off my shoulders. The fact that I can be there for my mother and grandmother is a huge blessing.” Jeff says that he can now help both his mother and grandmother, get them the medications and other supports they need, and provide for his family.
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PATRIC
Patric is a 31 year old male living in Inglewood. He had just left working for the post office and was trying to figure things out. He says, “I was in between jobs and trying to figure out everything. I’ve been able to get rent relief and get help with other bills. And they’re helping me in developing my career. By the end of the program, I’m hoping to be in a position to make a big purchase, like a house.”
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